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Financing California’s Public Schools

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photo - Stack of Books

Federal pandemic aid and increased state funding have contributed to record K–12 funding levels.

  • In 2021–22, state, local, and federal funding for California K–12 public schools was roughly $136 billion, compared to roughly $135 billion in 2020–21 (estimates as of July 2022).
  • The federal government allocated $23.2 billion in one-time aid in 2020–21 and another $9.2 billion in 2021–22. Federal funds accounted for 23% of K–12 funding in 2020–21 and 12% in 2021–22. In most non-recession years, the federal share is only 6% to 9%.
  • State K–12 funding increased nearly 50% between 2017–18 and 2021–22.

The majority of funding for California K–12 schools is provided by the state.

  • Since 1990, the state share of school funding typically has hovered between 54% and 61%, with the local share between 32% and 36%. These shares vary across school districts.
  • The state share was lower in 2020–21 (51%) than at any point in at least 30 years.
  • In 2020–21 and 2021–22, the state also invested over $5 billion in one-time COVID-19 recovery funds.

California’s per student spending is slightly above the national average . . .

  • In 2018–19 (the most recent school year for which we have nationally comparable data from the US Department of Education), spending per student on current operations (e.g., staff, materials) was $14,913 (in 2021$), roughly $1,000 more than the average in the rest of the nation ($13,831 per student).
  • California spent less than three of the five next most populous states: less than Illinois and Pennsylvania, and far less per student than the top-spending state in 2018–19, New York ($26,828). California spent more than Texas and Florida, which both spent nearly $10,000 per student in 2018–19.

. . . after per student spending lagged behind most other states for nearly two decades.

  • While California currently ranks 19th in spending per student among states (including Washington, DC), its rank ranged between 25th and 35th from the mid-1980s until the recovery from the Great Recession.
  • Adjusting for differences in labor costs across states, California’s rank drops to 35th.
  • During recessions, California’s K–12 spending typically falls more than spending in other states—but rises more quickly during economic recoveries.

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