An Introduction to LCFF & LCAP

California’s 2013-14 Budget Act approved a new state school finance system that greatly simplifies the way schools are funded in California. This new method is known as the Local Control Funding Formula (LCFF) and represents a major shift in how California school districts were previously funded.

For nearly 40 years, California had relied on a system that included general purpose funding (known as revenue limits) and more than 40 tightly defined categorical programs to provide state funding to school districts. Under LCFF, California funds school districts, charter schools, and county offices of education equally per student with adjustments based on grade levels and demographic characteristics. Furthermore it requires school districts to develop accountability plans known as a Local Control Accountability Plan (LCAP), to demonstrate to the public how education funds are used to support youth in a specific district. 

What is the Local Control Funding Formula (LCFF)?

In California, the amount of state funding that goes to support K-12 education depends on the overall size of the state budget. The formula to determine K-12 education’s share of California revenue is Proposition 98, which as a general rule of thumb results in approximately 40% of state revenues going towards K-12 education. The passage of Proposition 30 in 2012 increased state revenue, which helped increase funding for K-12 education.

Another way to think about this is that Proposition 98 determines the size of the K-12 education funding pie. Prior to the passage of the Local Control Funding Formula, the state divided the pie into slices for local educational agencies—districts, charter schools, and county offices of education— into two categories: revenue limits and categorical programs. In effect, the state told districts through the former funding formula how big their slice was and what the filling would be.

Now with the Local Control Funding Formula the state slices the pie based on a relatively simple calculation, which funds districts the same amount per student with a handful of adjustments for grade levels and demographic characteristics such as low income students, English learners and foster youth. Also, under the Local Control Funding Formula, the state has largely handed over responsibility for determining the filling of each pie to districts. The expectation is that funding flexibility improves the ability of districts to meet student needs compared to the former system where the state tended to direct funding to specific activities.


A Few Important Facts About LCFF

LCFF is California’s new formula for determining the level of state funding provided to districts

1. LCFF is California's new formula for determining the level of state funding provided to districts to provide for their state-supported general and supplemental programs.
2. LCFF will provide districts with base funding - the same per pupil amount for all students as well as supplemental and concentration grants for specific populations.
3. LCFF is designed to provide districts with flexibility to direct resources to meet student needs, increase funding transparency and aid in a simple explanation of how funding is provided and used locally. It supports equity through a student-focused formula, and focuses attention on performance requiring that plans are in place to describe how resources are used prior to the passage of district budgets.
4. Implementation of LCFF will take time. At present the Department of Finance estimates that this process will take eight years but if the economy grows faster this timeline may be shorter.
5. However, implementation of LCFF began with the 2013-14 year. Districts are now receiving funding based on a calculation for transitioning to LCFF. This means that districts are expected to begin developing the systems and structures to take advantage of the flexibility and meet accountability requirements.

What is a Local Control Accountability Plan (LCAP)?

As part of LCFF, school districts, county offices of education and charter schools are required to develop, adopt, and annually update a three-year Local Control Accountability Plan (LCAP).

The LCAP is required to identify annual goals, specific actions geared toward implementing those goals, and must measure progress for student subgroups across multiple performance indicators based on eight priorities set by the State. The priorities must be aligned to the district’s spending plan. The LCAP must be approved before the annual district budget can be adopted. Once the budget and LCAP are adopted at the local level the plan will be reviewed by the County superintendent and ensure alignment of projected spending toward goals and services.

A requirement in the development of the LCAP is to solicit input from parents, teachers, students, local bargaining units, staff and other community members in regard to which goals would be most effective for implementation in our schools toward reaching state priorities.

As noted above, there are eight state priority areas for which school districts, with parent and community input, must establish goals and actions: 

1. Providing all students access to fully credentialed teachers, instructional materials that align with state standards, and safe facilities.
2. Implementation of California’s academic standards, including the Common Core State Standards in English language arts and math, Next Generation Science Standards, English language development, history social science, visual and performing arts, health education and physical education standards.
3. Parent involvement and participation, so the local community is engaged in the decision-making process and the educational programs of students.
4. Improving student achievement and outcomes along multiple measures, including test scores, English proficiency and college and career preparedness.
5. Supporting student engagement, including whether students attend school or are chronically absent.
6. Highlighting school climate and connectedness through a variety of factors, such as suspension and expulsion rates and other locally identified means.
7. Ensuring all students have access to classes that prepare them for college and careers, regardless of what school they attend or where they live.
8. Measuring other important student outcomes related to required areas of study, including physical education and the arts.

In addition to these eight areas, a district may also identify and incorporate in its plan goals related to its own local priorities.