Fiscal Transparency in the Era of California's Local Control Funding Formula: An Analysis of Funding Levels, Expenditures, and Student Achievement

This research presents an analysis of California’s Local Control Funding Formula (LCFF) before and after implementation (AY 2013 to AY 2016). Funding allocations, expenditures, and student achievement data were analyzed across nine school districts in Northern California. Findings revealed a significant increase in state and local funding after implementation of LCFF for all districts. Statistical analyses showed larger districts received the greatest increases in funding and per pupil funding increases with the number of students who were eligible for Free and Reduced Lunch (FRL). While these trends were consistent both before and after the implementation of LCFF, the percent of funding spent on instruction, instruction-related services, pupil and ancillary services did not differ. Although expenditures for total revenue are tracked, there is no statewide system for tracking supplemental and concentration fund grants and yet, districts have full flexibility on how to spend these additional dollars within the eight state priorities. The lack of transparency at the district level compromises the replicability and scalability of district practices and undermines ongoing efforts for educational reform. Furthermore, findings revealed a significant increase in graduation rates after implementation of LCFF for all students, English Learners, and students eligible for FRL