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Local Control Funding Formula: Equity—and accountability 

LEAs will get extra money to close achievement gaps—and will be accountable for results

The centerpiece of the state budget’s education provisions is the Local Control Funding Formula. It continues to base local educational agencies’ allocations on average daily attendance paid out by the state, as has been the case since Proposition 13 upended local school revenues in 1978. However, LCFF also introduces some fundamental changes, providing supplemental and concentration grants based on student demographics in a bid to close the gap in achievement that separates targeted student groups from higher-performing groups.

  • Every LEA will receive a base grant per ADA, with the target level of funding based on the statewide average revenue limit and a commitment to get virtually all school districts back to their pre-recession levels—$6,845 for grades K-3, $6,947 for 4-6, $7,154 for 7-8, and $8,289 for 9-12. The formula provides a 10.4 percent add-on for K-3 to fund a class-size reduction target of no more than 24 students per teacher, which must be reached by full implementation of LCFF, and a 2.6 percent add-on for grades 9-12. “Economic Recovery Targets” will be provided to those districts that don’t reach their 2007-08 funding under the formula. Full implementation of LCFF is expected to take eight years—until the 2020-21 school year, approached through incremental phase-ins annually.
  • Supplemental grants will add 20 percent to the base grant for each English learner, student who is eligible for free or reduced-price meals, or student in foster care; students can only be counted in one category.
  • Concentration grants will add 50 percent to the base grant in LEAs where students qualifying for the supplemental grants comprise 55 percent or more of total enrollment.

Together, the LCFF grants replace a number of categorical programs, extending greater flexibility to local governance teams.

“CSBA is working now on resources and tools to support our members as they implement the Local Control Funding Formula,” said Executive Director Vernon M. Billy. “Webinars and webcasts, governance and policy briefs, fact sheets and other materials will begin to roll out this month, and we’ll continue to drill down to inform and educate local governance teams—and to advocate for  them as regulations and additional legislation unfolds.” 

Accountability timeline under LCFF

Legislators differed on how to hold LEAs accountable for expenditures of the supplemental and concentration grant funds they will receive under LCFF and for making progress in a number of student outcome measures listed in the statute. The State Board of Education will adopt emergency regulations on the supplemental and concentration funds by next January, following up with a template for local control accountability by the end of March. Local districts and county offices of education will need to adopt a Local Control Accountability Plan using the template by July 2014, and to update their plans annually thereafter. The State Board will adopt an evaluation rubric for the local plans before October 2015.

CSBA is already preparing to assist LEAs with the changes. Watch for informational briefs, trainings, webcasts and more—and in the meantime, stay informed through the CSBA Legislative News portal www.csba.org/LegislativeNews, where you can already find: