Proposition 98 is the shorthand term for the state's constitutional minimum funding requirement for K-14 education. This annual spending guarantee is met
from two revenue sources: state aid and local property taxes.
The state will provide 62 percent of all school revenue in 2000-01, while local government sources (property taxes and other local income) will contribute 27
percent. The federal government will provide 9 percent.
The state lottery provides less than 2 percent of total school revenues, around $125 per pupil.
K-12 School Spending
2000-01
School "revenue limits" are general purpose funds--supported by both state funds and local property taxes--that provide the resources for basic school
programs. These funds account for 53 percent of all school expenditures. Lottery revenues provide another source of general purpose funds, but account for
less than 2 percent of all school expenditures.
Remaining school expenditures provide for specific educational needs--such as special education, transportation, and class size reduction. These "categorical"
funds constitute 45 percent of school spending.
Over the past decade, general purpose funds have declined as a percentage of overall school funding.
The Average Cost of a California School
1997-98
The costs of services delivered in the classroom account for about two-thirds of K-12 costs. Over half of the total costs are for teachers, with an additional 16 percent for instructional aides, pupil support personnel (counselors, psychologists, nurses), books, and supplies and equipment.
Nonclassroom school site costs comprise 28 percent of school spending. These costs consist of school site leadership (administrators and clerical support),
building maintenance, instructional support, and other expenses.
Administration, which consists of district administration and county and state oversight, accounts for 6 percent of the costs of an average school.
Growth in K-12 Enrollment
Will Slow Significantly
K-12 enrollment is projected to increase by 1.2 percent in 2000-01, bringing total K-12 enrollment to 5.9 million students.
Over the next eight years, enrollment growth is expected to slow, approaching zero growth in 2008-09. At that point, there will be 225,000 more pupils in
the K-12 system than today (3.8 percent).
Each 1 percent increase in K-12 enrollment requires an increase of approximately $300 million (General Fund) to maintain annual K-12 expenditures per
pupil.
Divergent Trends in Elementary and High School Enrollments
Elementary school enrollment growth has gradually slowed since 1996-97. Growth rates are expected to become negative in 2001-02 and remain negative
through 2006-07. Over this period, elementary school enrollments are expected to decline by 140,000 pupils (4.3 percent).
In contrast, high school enrollment growth is expected to accelerate in the short term, reaching a 3.8 percent annual growth rate in 2004-05. Then, growth is
expected to slow sharply, becoming negative in 2008-09. Expected growth over the next eight years is almost 300,000 pupils (18 percent).
These divergent trends have significant budgetary and policy implications for issues such as class size reduction, teacher demand, and facilities investment.
Proposition 98 Funding Per Student Has Risen Sharply
Constant 2000-01 Dollars
California's spending per pupil (adjusting for inflation) has rebounded significantly since the recession.
In 2000-01, Proposition 98 spending per pupil will be $6,701. This represents an increase of $676, or 11 percent, above the level funded in the 1999-00
Budget Act.
After adjusting for the effects of inflation and changes in attendance accounting, Proposition 98 spending per pupil increased $1,472, or 28 percent, between 1993-94 and 2000-01.
Increase in Noncredentialed Teachers Varies Widely Among Schools
K-3 Schools, by Quartile
The percent of K-3 teachers lacking a credential has increased dramatically in schools serving the largest proportion of low-income students (from 3.2
percent in 1995-96 to 21 percent in 1998-99).
By comparison, the percent of K-3 teachers lacking a credential in schools serving primarily affluent students increased from 0.4 percent to 4 percent.
The 2000-01 budget provided a $118 million block grant, as well as funds for several new and expanded programs, to help schools serving primarily
low-income students recruit and retain credentialed teachers.
Eighth Grade Reading Proficiency Levels by Race/Ethnicity
1998
Based on tests given in the National Assessment of Education Progress (NAEP), California ranked 35th out of 38 in 8th grade reading proficiency compared
to other participating states.
California's poor NAEP performance was similar across grade levels and subject areas.
Although California's NAEP scores are very low on an all-student basis, when white, African-American, or Hispanic pupils are compared to the same ethnic
groups in other participating states, California students score relatively close to students from other states.
K-12 Pupil Scores Have Improved
Standardized Testing and Reporting (STAR)
Scores on the Stanford9 (a nationally normed referenced test) have improved since the test was first administered in 1998. Gains were made by all subgroups
(race/ethnicity, socioeconomic, or English proficiency).
Pupils with limited English proficiency (LEP) significantly trail other students in all measured subject areas (math, English, science, and social science).
In each grade level, the same test has been administered for each of the three years, so at least part of the gains could result from increasing familiarity with
test format and questions.
The Stanford9 test is not aligned to the state academic content standards.
