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Excess Revenue, Unequal Opportunity: Revisiting Basic Aid in the LCFF Era

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Title: Excess Revenue, Unequal Opportunity: Revisiting Basic Aid in the LCFF Era
Language: English
Authors: Carrie Hahnel, Sophie Zamarripa, H. Alix Gallagher, Stanford University, Policy Analysis for California Education (PACE), Bellwether
Source: Policy Analysis for California Education, PACE. 2025.
Availability: Policy Analysis for California Education, PACE. 520 Galvez Mall, CERAS Room 401, Stanford, CA 94305-3001. Tel: 650-724-2832; Fax: 510-642-9148; e-mail: info@edpolicyinca.org; Web site: http://www.edpolicyinca.org
Peer Reviewed: N
Page Count: 42
Publication Date: 2025
Sponsoring Agency: Walton Family Foundation
Document Type: Reports - Research
Descriptors: School Districts, Taxes, Public Policy, Educational Finance, School District Wealth, School Funds, State School District Relationship, Educational Equity (Finance), State Aid, Advantaged, Educational Policy, State Policy
Geographic Terms: California
Abstract: California's school funding formula for transitional kindergarten (TK) through Grade 12 is designed to direct more resources to students with greater need. However, some districts--known as basic aid districts--generate more funding from local property taxes than the state calculates they need under the Local Control Funding Formula (LCFF). This report, the first major study on basic aid since the enactment of LCFF in 2013, finds that 139 districts serving just 5.5 percent of California's TK-12 students are benefitting from growing funding advantages. Excess local revenue in basic aid districts has risen 41 percent (17 percent when adjusted for inflation) over 5 years--outpacing LCFF growth and widening the gap between property-rich districts and those that rely on state aid. In analyzing disparities between basic aid districts and their peers, this report focuses on a subset of 50 well-resourced districts--those with both high excess revenues and low percentages of high-need students (e.g., students from low-income households, English learner students, students in foster care)--that capture the majority of these funding advantages. California's school finance system has been designed with equity in mind, but the resource disparities created by excess advantage districts risk undermining that principle. Policymakers now face important choices about whether and how to address these excess resources so that all students benefit, regardless of where they live. The policy options outlined in this report provide potential pathways to move the system closer to funding fairness. [Additional funding for this report was provided by the Give Forward Foundation, the Ken and Jaclyn Broad Family Fund, the Bay Area Tutoring Association, and the Siegelman Family Trust.]
Abstractor: ERIC
Entry Date: 2025
Accession Number: ED676791
Database: ERIC
FullText Text:
  Availability: 0
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  – Url: https://eric.ed.gov/contentdelivery/servlet/ERICServlet?accno=ED676791
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  Data: Excess Revenue, Unequal Opportunity: Revisiting Basic Aid in the LCFF Era
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  Data: <searchLink fieldCode="AR" term="%22Carrie+Hahnel%22">Carrie Hahnel</searchLink><br /><searchLink fieldCode="AR" term="%22Sophie+Zamarripa%22">Sophie Zamarripa</searchLink><br /><searchLink fieldCode="AR" term="%22H%2E+Alix+Gallagher%22">H. Alix Gallagher</searchLink><br /><searchLink fieldCode="AR" term="%22Stanford+University%2C+Policy+Analysis+for+California+Education+%28PACE%29%22">Stanford University, Policy Analysis for California Education (PACE)</searchLink><br /><searchLink fieldCode="AR" term="%22Bellwether%22">Bellwether</searchLink>
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  Data: Policy Analysis for California Education, PACE. 520 Galvez Mall, CERAS Room 401, Stanford, CA 94305-3001. Tel: 650-724-2832; Fax: 510-642-9148; e-mail: info@edpolicyinca.org; Web site: http://www.edpolicyinca.org
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  Data: <searchLink fieldCode="DE" term="%22School+Districts%22">School Districts</searchLink><br /><searchLink fieldCode="DE" term="%22Taxes%22">Taxes</searchLink><br /><searchLink fieldCode="DE" term="%22Public+Policy%22">Public Policy</searchLink><br /><searchLink fieldCode="DE" term="%22Educational+Finance%22">Educational Finance</searchLink><br /><searchLink fieldCode="DE" term="%22School+District+Wealth%22">School District Wealth</searchLink><br /><searchLink fieldCode="DE" term="%22School+Funds%22">School Funds</searchLink><br /><searchLink fieldCode="DE" term="%22State+School+District+Relationship%22">State School District Relationship</searchLink><br /><searchLink fieldCode="DE" term="%22Educational+Equity+%28Finance%29%22">Educational Equity (Finance)</searchLink><br /><searchLink fieldCode="DE" term="%22State+Aid%22">State Aid</searchLink><br /><searchLink fieldCode="DE" term="%22Advantaged%22">Advantaged</searchLink><br /><searchLink fieldCode="DE" term="%22Educational+Policy%22">Educational Policy</searchLink><br /><searchLink fieldCode="DE" term="%22State+Policy%22">State Policy</searchLink>
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  Data: <searchLink fieldCode="DE" term="%22California%22">California</searchLink>
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  Data: California's school funding formula for transitional kindergarten (TK) through Grade 12 is designed to direct more resources to students with greater need. However, some districts--known as basic aid districts--generate more funding from local property taxes than the state calculates they need under the Local Control Funding Formula (LCFF). This report, the first major study on basic aid since the enactment of LCFF in 2013, finds that 139 districts serving just 5.5 percent of California's TK-12 students are benefitting from growing funding advantages. Excess local revenue in basic aid districts has risen 41 percent (17 percent when adjusted for inflation) over 5 years--outpacing LCFF growth and widening the gap between property-rich districts and those that rely on state aid. In analyzing disparities between basic aid districts and their peers, this report focuses on a subset of 50 well-resourced districts--those with both high excess revenues and low percentages of high-need students (e.g., students from low-income households, English learner students, students in foster care)--that capture the majority of these funding advantages. California's school finance system has been designed with equity in mind, but the resource disparities created by excess advantage districts risk undermining that principle. Policymakers now face important choices about whether and how to address these excess resources so that all students benefit, regardless of where they live. The policy options outlined in this report provide potential pathways to move the system closer to funding fairness. [Additional funding for this report was provided by the Give Forward Foundation, the Ken and Jaclyn Broad Family Fund, the Bay Area Tutoring Association, and the Siegelman Family Trust.]
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PLink https://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=eric&AN=ED676791
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      – Text: English
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        PageCount: 42
    Subjects:
      – SubjectFull: School Districts
        Type: general
      – SubjectFull: Taxes
        Type: general
      – SubjectFull: Public Policy
        Type: general
      – SubjectFull: Educational Finance
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      – SubjectFull: School District Wealth
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      – SubjectFull: School Funds
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      – SubjectFull: State School District Relationship
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      – SubjectFull: Educational Equity (Finance)
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      – SubjectFull: State Aid
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      – SubjectFull: Educational Policy
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      – SubjectFull: State Policy
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      – SubjectFull: California
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      – TitleFull: Excess Revenue, Unequal Opportunity: Revisiting Basic Aid in the LCFF Era
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