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CALIFORNIA’SNEWEDUCATIONFUNDINGFORMULA
What is i
t?
Who b
enefit
s?
What does i
t mean
for students?
CALIFORNIA’S NEW EDUCATION
FUNDING FORMULA:
How can I get involved?
2 THE EDUCATION TRUST—WEST
$
In July 2013, California dramatically reformed the way we fund our
schools. The new law, the Local Control Funding Formula (LCFF),
replaces an outdated and unfair education funding system. In this
guide, we provide parents and community leaders with the information
they need to ensure that LCFF is not just about local control and
flexibility, but also—and most importantly—about educational justice.
In updating and simplifying the old school finance model, California combined dozens of separately funded “categorical”
programs designated for specific purposes and moved spending decisions from the state to local school districts. The over-
arching goal was to provide more money to districts based on how many low-income students, English learners, and foster
youth they serve. This was critically important because under the old system, wealthier school districts actually received more
local and state dollars than the poorest school districts.
This new law holds the promise of improved educational outcomes for California’s most underserved learners. That promise,
however, will only be realized if the law is implemented, as it was created, with equity and fairness in mind. Over 3.7 million
students in California are either low-income, English learners, or in foster care—representing about 60 percent of the school-
age population. Meeting the educational needs of these students and ensuring they are on a path toward college and career
success demands that their parents and guardians be true partners in decisions about their schooling.
California’s School Finance
System Before And After The Local
Control Funding Formula (LCFF)
What is the Local Control Funding Formula?
More money for all schools
More equity
REVENUE LIMIT
CATEGORICAL PROGRAMS
BASE FUNDINGREVENUE LIMIT
CATEGORICAL PROGRAMS
BASE FUNDING
Old F
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