School Funding Effectiveness: Evidence from California's Local Control Funding Formula. Brief

In 2013, California implemented an ambitious school funding reform, the Local Control Funding Formula (LCFF), which allocates state funding by the proportion of unduplicated "high-need" students in the district: those from low-income families, English learners, and those in foster care. Using student-level longitudinal data for all California schoolchildren, the study is the first comprehensive investigation of LCFF's impacts on student outcomes, including math and reading achievement, grade repetition, school disciplinary incidents, high school graduation, and college readiness. The analyses show that LCFF-induced funding increases significantly improved academic achievement for every grade and subject assessed, reduced grade repetition, enabled lower suspension rates, and increased the likelihood of students graduating from high school and being college-ready. The impact on student achievement grew with years of exposure to increased funding and with the amount of the funding increase. District investments in instructional inputs, including reduced class size, increased teacher salaries, and teacher retention, were associated with improved student outcomes. [Additional funding from the University of California, Berkeley (UC Berkeley) Population Center pilot grant.]