In 2013, California adopted a new formula for determining how much money each school district will receive called the Local Control Funding Formula (LCFF). California state law sets out the system for funding public schools. State leaders largely decide how much money is available to schools each year as part of the state budget process.

School Boards decide how to use the funds, but under the new system they must get input from their local communities. They also have to tie their budgets to improvement goals by creating a Local Control and Accountability Plan (LCAP). The plan is a three-year plan that must be updated each year. It must include both goals for the school district and for each numerically significant subgroup (30 or more students for all subgroups except foster youth which is 15 or more). The plans must specify the actions a school district will take to achieve these goals and must be aligned with the district’s annual budget.

School districts are also required to solicit input from employees, bargaining units, parents, students and community members in crafting the LCAP. In addition, the LCAP must include annual goals in eight areas in three categories: