UPDATE: California schools are on the brink of a major funding overhaul that could deliver an additional $6 billion annually. A new report from the Legislative Analyst’s Office urges a shift from attendance-based funding to an enrollment-based model, aligning California with 45 other states. This change, however, comes with significant trade-offs that could impact student attendance and educational outcomes.
Just announced, the report highlights that while shifting funding to enrollment could boost school budgets, it may inadvertently reduce the incentive for schools to encourage daily attendance. Currently, California schools receive funding based on average daily attendance, which has historically incentivized schools to keep students in classrooms. The analysis warns that without this motivation, schools might see attendance drop further, hindering student performance and success.
California’s previous funding model has been in place for over a century, but the COVID-19 pandemic has exacerbated existing attendance issues. In 2019, nearly 96% of students attended school daily, but this figure fell to about 90% during the pandemic and has not fully rebounded. According to the report, strong attendance correlates with higher test scores, improved reading proficiency, and increased graduation rates.
Hedy Chang, president of the nonprofit research group Attendance Works, emphasizes the need for a balanced approach. “For some districts, there might be benefits to a funding switch, but it also helps when districts have a concrete incentive for encouraging kids to show up,” she stated.
The report suggests that if lawmakers want to enhance school funding, they should consider increasing financial support for schools serving high numbers of low-income students, foster youth, and English learners while keeping the attendance-based model intact.
Currently, California allocates around $15,000 per student through the main funding mechanism, the Local Control Funding Formula, along with an additional $7,000 from federal sources and other funds. Despite spending over $100 billion on education last year, schools argue that funding does not adequately meet the needs of students, particularly those requiring additional support.
Critics of the proposed funding change, including Troy Flint of the California School Boards Association, warn that linking funding to enrollment rather than attendance could worsen the situation for schools with high absenteeism rates, which often serve vulnerable populations. “It just compounds the problem, creating a vicious cycle,” Flint noted.
As this issue gains traction, schools across the state are advocating for a funding model that reflects the reality of student needs. The conversation around this funding shift was reignited at a recent California School Boards Association conference, with a previous bill aimed at reforming the funding formula having passed in 2024, though it only called for further study.
What’s next? As discussions continue, education leaders and lawmakers will have to balance the urgent need for increased funding with the potential consequences on student attendance. The stakes are high, as the decisions made in the coming months could reshape the landscape of California education for years to come.
Stay tuned for more updates on this developing story as stakeholders weigh in on the future of California’s educational funding.
