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Independent, objective, nonpartisan research
Fact Sheet · November 2025

Financing California’s Public Schools

Julien Lafortune and Brett Guinan

Increased state and federal funds contributed to record K–12 funding levels in recent years.

  • In 2024–25, state, local, and federal funding for California K–12 public schools was roughly $142.4 billion, compared to roughly $134 billion in 2023–24 (estimates as of July 2025).
  • Between 2019–20 and 2024–25, state funding increased nearly 50% (22% inflation-adjusted).
  • The federal government provides about 6% of total funding, which has been consistent over most non-recession years. During the pandemic, federal contributions rose dramatically with $31 billion in one-time aid; federal funds accounted for 23% of K–12 funding in 2020–21 and 11% in 2021–22.

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 roughly 60% for the past four years, slightly above historical levels.
  • Ballot initiatives and court decisions have long shaped how California funds its schools. Most prominently, Proposition 98 sets a constitutional minimum guarantee for K–12 education funding.

California’s per pupil spending is above the national average.

  • In 2022–23 (the most recent school year for which we have nationally comparable data), spending per pupil on current operations (e.g., staff and materials) was $20,496 (in 2025 dollars), roughly $2,800 more than the average in the rest of the nation ($17,699 per pupil).
  • California spent less in 2022–23 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 ($32,723). California spent about $4,800 dollars more than Georgia, $7,000 more than Texas, and $7,500 more than Florida.
  • After ranking between 25th and 35th from the mid-1980s until after the Great Recession, California is now 16th in per pupil spending among states (including Washington, DC). When differences in labor costs across states are accounted for, California drops to 31st.
  • California’s K–12 spending typically falls more than spending in other states during recessions—but it rises more quickly during economic recoveries.

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 plans that describe goals, actions, and spending.
  • LCFF sets a funding target for each district; the state funds what is not met by local revenue. About 15% of districts are “basic aid”: they exceed the target and retain the extra local funds.
  • California districts spent about $23,000 per pupil in 2023–24. Spending was higher for low-income than higher-income students (by $2,400), for English Learners (ELs) than non-ELs (by $1,200).

Despite record funding levels, the K–12 system faces fiscal challenges.

  • With enrollment declines 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 goes to staffing, 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.
  • The expiration of pandemic aid and increased uncertainty over federal policy pose challenges as districts seek to overcome the academic and social-emotional fallout from the pandemic.

Topics

K–12 Education Political Landscape