Lafayette schools are among the highest-rated schools in California, yet they receive the lowest level of funding from the state. Understanding why requires looking at how public-school funding works and what the entire Lafayette community does to make up the difference.

Public school funding is determined by the Local Control Funding Formula (LCFF). This formula allocates more funding to school districts that have high concentrations of English language learners, low income students, and/or foster youth. Because Lafayette schools do not have as many students who meet these criteria, they receive less funding than other California schools. The resulting low funding, compounded by rising operating costs, does not provide enough to pay for the expanded instructional programs that our students, families, and community value. To maintain the academic excellence of our schools, which attract families to our community and keep property values high, the schools seek additional funding.

1. Each year, the school districts identify annual program priorities following state requirements and with input from parents, principals, and the community.

2. Schools receive government funding based on the LCFF formula. The statewide budget is often inconsistent and varies year to year proving very challenging. To supplement underfunding, the Lafayette community has developed budget relieving tools. Every year these funds prove crucial in filling in shortfalls. These tools include LPIE annual fundraising, Parcel Taxes, and the new LPIE endowment.

3. In conversation with LPIE, the districts determine the allocation of the donated funds.

4. LPIE directs the money to the districts where it is distributed to pay for salaries, programs, and supplies for all grades at all our public schools.

In California, property taxes go to the state’s general fund rather than directly into the community to fund the schools. The money is then allocated by the legislature and governor, along with other areas of state spending. School parcel taxes and bond measures may directly fund schools, but are relatively modest sums, specifically earmarked, and often only for a set time period.

Please note that the Acalanes Unified High School District is funded by property taxes, but because of Prop 13 limits, the amount is not sufficient to fully fund the high school programs.

When California passed Prop 13 in 1978, it capped property taxes in the state. That meant a big reduction in tax revenue. One of the areas most affected was public schools. California went from having some of the highest per student funding of schools to among the lowest in the nation.

Prop 13 capped property taxes in the state to no more than 1% of full assessed value. Before Prop 13, local property taxes were the main source of K-12 funding, on average about 60%, but because Prop 13 drastically reduced property taxes, they are no longer the major source of school funding. California school districts had a great deal of autonomy that prop 13 shifted to state policymakers.

The sources of revenue for the 2023-2024 Lafayette School District budget are outlined below:

Total Revenue: 53,001,243.23

LCFF: $35,211,153.00 (66%)

Federal Revenue: 820,963.59 (2%)

Other State Revenue : $4,169,143.80 (8%)

Other Local Revenue: $12,799,982.84 (24%)

Other Local Revenue includes: Parcel Taxes: $8,176872 (15% of Total Revenue)

LPIE: $2,464,865 (5% of Total Revenue, increased from 4% in 2022-2023)

California public school funding is determined by the Local Control Funding Formula (LCFF). This formula allocates more funding to school districts that have high concentrations of English language learners, low-income students, and/or foster youth.

Acalanes High School is considered a Basic Aid District some years and sometimes not. Lafayette School District has never been considered a Basic Aid District. Throughout the year, some districts fall in and out of basic aid status. For a variety of reasons having to do with such things as local tax collection procedures, their status may be uncertain.

The California Constitution guarantees that each school district will receive a minimum amount of state aide, called “basic aid”. Basic Aid Districts essentially occur when the local property tax revenue in a district exceed what the state allocated to them under LCFF, and they are able to keep the excess.

Out of California’s nearly 1,000 elementary, high school, and unified school districts, approximately 100 are basic aid districts. However, this number changes from year to year as local property tax revenues and enrollments fluctuate. A district can be a revenue limit district one year and basic aid the next.

Parcel taxes are one of the only local revenue options allowed by Proposition 13. They provide school districts with the ability to raise taxes to supplement the funding they receive from the state. Parcel tax measures involve a simple flat fee that applies to all parcels. A small share of measures propose variable rates that hinge on property size or use (e.g., single-family homes, business, or undeveloped land).