Rising to the Challenge: Why Greater Investment in K-12 Education Matters for California's Students October 3rd, 2013

California’s K-12 schools face a unique set of challenges. Not only does California educate more students than
any other state, but economically disadvantaged students and English learners (ELs) account for a larger share
of students in California than in the rest of the US. Yet, even though California has more financial resources per
capita than the rest of the US, the state spends far less of its total personal income on K-12 schools. As a result, California
K-12 education spending continues to lag the nation by a number of key measures. Although Proposition 30, passed by
California voters in November 2012, is expected to increase state revenues and boost school spending over the next few
years, this revenue measure alone will not provide California schools with sufficient resources to meet the challenges of
educating the state’s students.

While California’s current financial support for schools falls well short of the state’s capacity to invest in K-12 education,
the new Local Control Funding Formula (LCFF) – approved by the Governor and the Legislature earlier this year – is
an important step toward aligning state education funding with student needs. The LCFF fundamentally restructures
California’s education finance system and directs additional resources to disadvantaged students – specifically ELs,
students from low-income families, and foster youth. How the state allocates education dollars is especially important in
California, because its schools rely more heavily on state funding – and relatively less on local property taxes – than those
in the rest of the US. This is largely due to the limits that Proposition 13 of 1978 imposed on the local property tax as well
as policies enacted after Proposition 13 to help schools and local governments cope with the loss of local revenues. This
School Finance Facts compares California’s student demographics, education funding, and school spending and staffing
to that in the rest of the US, and shows why California will need to invest more to provide a high-quality education for all
students.

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