FAC T S H E E T • N OV E M B E R 2 0 2 4
Julien Lafortune and
Financing California’s Public Schools Brett Guinan
Increased state spending and one-time federal pandemic funds have contributed to record
K–12 funding levels in recent years.
⊲ In 2023–24, state, local, and federal funding for California K–12 public schools is roughly $131 billion,
compared to roughly $125 billion in 2022–23 (estimates as of July 2024).
⊲ Between 2018–19 and 2023–24, state K–12 funding increased nearly 32%.
⊲ The federal government allocated $31 billion in one-time aid since the pandemic; federal funds accounted
for 23% of K–12 funding in 2020–21 and 11% in 2021–22. These one-time funds needed to be spent by fall
2024. In most non-recession years before the pandemic, the federal share ranged from 6% to 9%.
The state provides the majority of K–12 funding.
⊲ Since 1990, the state share of K–12 funding has largely hovered around 55% to 60%; the local share is
typically near 33%.
⊲ After reaching a 30-year low (51%) in 2020–21 with the influx of federal pandemic aid, the state share of
funding has been above 60% for the past four years, slightly above historical levels.
California’s per pupil spending is slightly above the national average.
⊲ In 2021–22 (the most recent school year for which we have nationally comparable data from the US
Department of Education), spending per pupil on current operations (e.g., staff, materials) was $19,548 (in
2024$), roughly $1,800 more than the average in the rest of the nation ($17,783 per pupil).
⊲ California spent less in 2021–22 than two of the five next most populous states: less per pupil than Illinois
and far less than New York, which is also the top-spending state ($33,739). California spent about $3,900
dollars more than Georgia and about $6,000 more than Texas and Florida.
⊲ After ranking between 25th and 35th from the mid-1980s until after the Great Recession, California is
now 18th in per pupil spending among states (including Washington, DC). When differences in labor costs
across states are accounted for, California drops to 34th.
⊲ California’s K–12 spending typically falls more than spending in other states during recessions—but it rises
more quickly during economic recoveries.
California school spending has been above the national average since 2018–19
Current expenditures per student from 1986–87 to 2021–22 (in July 2024$)
Sources: Common Core of Data, National Center of Education Statistics; Authors’ calculations.
Notes: Annual expenditures per student, adjusted for inflation (July 2024$). At the time of publication, 2021-22 was the most recently
available year. “Rest of the nation” includes all states and Washington DC, and excludes CA. Average for “Rest of the nation” weighted by
state enrollment, representing average spending for a student attending public K–12 outside of CA. “West coast” includes Oregon and
Washington. “Most populous” are states with the largest populations. “Top 5” and “Bottom 5” are the states with the highest and lowest
spending per student in 2021-22. Year shown is fiscal year (e.g., 2022 = 2021-22).
PUBLIC POLICY INSTITUTE OF CALIFORNIA PPIC.ORG
California’s school funding formula allocates additional funding to higher-need students.
⊲ The Local Control Funding Formula (LCFF), enacted in 2013–14, provides additional funding based on
district shares of high-need students (low-income, English Learner, and/or foster youth); districts have
spending flexibility but must submit Local Control and Accountability plans that describe goals, actions,
and spending.
⊲ LCFF generates a funding target for each district; the state funds what is not covered by local revenue.
About 15% of districts are “basic aid”: their local revenue exceeds the target, and they retain these extra
local funds.
⊲ Per pupil spending in 2022–23 was higher for low-income than higher-income students (by $1,903), for
English Learners (ELs) than non-ELs (by $1,073), and for Black and Latino than white students (by $2,201
and $1,670, respectively).
Despite record funding levels, the K–12 system faces fiscal challenges.
⊲ With declines in California’s K–12 enrollment projected to continue through the next decade, most
districts and counties will face the fiscal, operational, and educational challenges of downsizing.
⊲ District funding is based on average daily attendance (not enrollment); this means that high rates of
chronic absenteeism since the pandemic—especially among low-income, Black, and Latino students—
have fiscal implications for districts.
⊲ Because roughly 80% of current spending is for staffing (teachers, support staff, etc.), increases in
personnel costs—such as health coverage and other benefits—can have an outsized fiscal impact.
Notably, rising pension contributions absorbed about 25% of the pre-pandemic spending increase from
2013–14 to 2019–20.
⊲ Districts will need to decide which pandemic-era school resources and services to continue after
the expiration of federal stimulus funding in fall 2024; this will be challenging for schools that are still
grappling with academic and social-emotional fallout from the pandemic.
Spending is highest for low-income, Black, and Latino students
Current expenditures per student for the 2022–23 school year
Sources: California Department of Education, SACS district finance data, annual enrollment files, and UPC source files; Authors’
calculations.
Notes: Current spending per student shown adjusted for inflation (Jul 2024$). Current spending excludes capital outlay, debt service,
and spending on non-K–12 functions (e.g., pre-K and adult education). Averages for each student group calculated using district-level
enrollment and district spending per unit of average daily attendance (ADA). Charter schools not reporting on a district’s general fund are
excluded. Nat. Am. is Native American.
Sources: State Auditor Report 2021-115 (Jan. 2022); Targeted K–12 Funding and Student Outcomes (PPIC, 2023); Understanding the
Effects of School Funding (PPIC, 2021); California Department of Education: annual enrollment files, SACS annual financial files, COVID-19
relief summary sheet; Legislative Analyst’s Office: EdBudget; National Center for Education Statistics: Common Core of Data, Comparable
Wage Index for Teachers (CWIFT).
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