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Public School Funding and Basic Aid

Overview

California public school districts receive funding from a variety of local, state and federal sources. Some of the funds are earmarked for specific groups of students, including students from low-income families, English language learners and students with disabilities. The rest of the funds are intended for general purposes.

The amount of general purpose funding the state calculates a school district should receive per student (using average daily attendance, also known as ADA) is called its Local Control Funding Formula (LCFF) target. For most districts, this target is funded through a combination of local property taxes and state taxes.

However, Saratoga Union School District (SUSD) is a "basic aid" ("community funded") district because its local property tax revenues exceed its LCFF target. This allows SUSD to keep that excess revenue, resulting in higher per-pupil funding than the state-mandated minimum.

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Basic Aid Funding

SUSD's "basic aid" ("community funded") status means local property tax revenues exceed the funding level it would otherwise receive under the state's standard formula.

Under California law, SUSD is allowed to keep this excess property tax revenue, resulting in a high dependence on the local tax base. Consequently, the District receives only the constitutionally guaranteed minimum of $120 per student in basic general fund aid from the state. While property values and enrollment naturally fluctuate, SUSD historically maintains this basic aid status due to its strong local property tax revenues.

 

  • Higher levels of funding: Basic aid districts receive higher revenues than revenue-limit districts.
     
  • Declining enrollment doesn't have a negative impact: Because funding is based on property taxes, a decrease in student enrollment (i.e. loss in ADA) doesn't result in a reduction of local property taxes.
     
  • Properly tax growth aids the district: When property values and sales increase, the growth in property taxes yield increases in school revenue.

 

Challenges

As a higher revenue basic aid district, SUSD has been able to provide the community with high level educational programs, instructional materials and competitive salaries to attract and retain staff. However, in order to maintain fiscal solvency there are challenges to consider, including: