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| California's School Finance System
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The Basics
California's school finance system pays for the education of more than 6 million students in kindergarten through 12th grade. It also supports the salaries of thousands of employees and the construction and maintenance of more than 9,000 public schools.
Revenues
California’s public education system is supported primarily by state sales and income tax revenues and by local property taxes. These are supplemented with money from the federal government, the California State Lottery, and miscellaneous funds generated locally by school districts.
See Revenues 
Allocations
In California, the state controls not only how much funding goes to K-12 education, but how those funds are allocated.
Expenditures
While the state government in California largely determines how much revenue school districts receive, decisions about how to spend those funds are made at the local level. In making these decisions, local districts have to comply with the provisions of collective bargaining agreements with their employee unions and with state and federal regulations related to categorical programs.
Dollars to Districts
On average, about two-thirds of the revenues districts receive are for general purposes and the remaining third comes from categorical programs.
See Dollars to Districts
Facilities Funding
For the most part, funding for the construction and repair of school facilities is separate from funding for operations. The bulk of capital costs are paid for through public bonds.
Charter Schools
Charter schools in California are publicly funded but function somewhat differently from traditional public schools. They operate independently under a performance agreement with a chartering authority, which is typically a school district but can also be a county office of education or the State Board of Education.
History
Since 1968, California’s school finance system has been shaped by a variety of laws, court decisions, and ballot measures.
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What's New
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This section explains how California's school finance system works.
For a quick primer on California's school finance system, also download EdSource's free 2-page Q&A.
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