California School District Apportionment Explainer

The Local Control Funding Formula (LCFF), enacted in 2013, is the primary way California funds school districts, charter schools, and county offices of education. Almost every dollar in your district's unrestricted general fund flows through this formula.

The four building blocks

• Base Grant — a per-ADA dollar amount that varies by grade span (K-3, 4-6, 7-8, 9-12). Higher for the upper grades.
• Grade Span Adjustments — an extra ~10% added to the K-3 base grant (to fund smaller class sizes) and an extra ~2.6% added to the 9-12 base grant (for career technical education).
• Supplemental Grant — an extra 20% of the adjusted base grant, multiplied by the district's unduplicated pupil percentage (UPP) — the share of students who are English learners, low-income, or foster youth.
• Concentration Grant — an additional 65% of the adjusted base grant for every unduplicated pupil above 55% of total enrollment. Districts with concentrated need get more.

Key terms to know

ADA (Average Daily Attendance)

The headcount-equivalent that LCFF pays on. As of 2023-24, districts may use the greater of current-year ADA or a three-year rolling average.

UPP (Unduplicated Pupil Percentage)

Share of enrollment counted as English learner, low-income, or foster youth — counted once even if a student is in multiple categories.

LCFF Target vs. Floor

LCFF was fully funded in 2018-19. Today nearly all districts are at full target funding.

State Aid vs. Local Revenue

The LCFF target is funded first by local property taxes, then by state aid making up the difference. Together they equal the LCFF entitlement.

Basic Aid (Community-Funded) Districts

A district whose local property taxes alone exceed the LCFF target. They keep all their property taxes and receive minimal state aid. About 130–150 districts statewide.

Source: CDE, "Local Control Funding Formula Overview"; LAO, "An Overview of the Local Control Funding Formula."

The "Principal Apportionment" is the schedule of state payments to LEAs (local educational agencies) for LCFF and the major categorical programs. CDE certifies it three times during the fiscal year, then re-certifies it up to three more times in following years as data is finalized.

The certifications, in order

How the cash arrives

LCFF state aid is paid in monthly installments. Education Code §14041 sets the schedule: roughly 5% in July and August, 9% September through January, then larger payments February through June after each certification. EPA payments arrive in four quarterly transfers (September, December, March, June). Special education and most categoricals follow the LCFF schedule.

Source: CDE, "Principal Apportionment Payment Schedule"; California Education Code §§14002, 14041, 41330–41341.

Before any LEA gets an apportionment, the state has to decide how big the K-14 funding pool is. Two constitutional rules — Proposition 98 and Proposition 30/55's Education Protection Account — do most of that work.

Proposition 98 (1988)

Prop 98 sets a minimum guarantee for K-14 funding (TK-12 schools and community colleges). Each year the guarantee is computed three ways — the "tests" — and the state must fund at least the highest applicable amount:

• Test 1: ~38% of state General Fund revenues.
• Test 2: Prior-year Prop 98 funding adjusted for K-12 ADA growth and per-capita personal income growth (used in normal economic years).
• Test 3: Prior-year Prop 98 adjusted for ADA growth and per-capita General Fund growth (used in lean years; creates a "maintenance factor" the state must repay later).

The Prop 98 guarantee is funded by a combination of state General Fund and local property taxes. Local property tax revenues count toward the guarantee — they don't add to it.

Education Protection Account (EPA)

Prop 30 (2012) and Prop 55 (2016) created a temporary, then extended, income tax surcharge on high earners and direct the revenue into the EPA. EPA funds count toward the Prop 98 guarantee — they don't increase it. The state distributes EPA quarterly directly to LEAs based on a per-ADA share of the LCFF entitlement.

Why this matters at the table

When a district claims it "can't afford" a salary increase, the conversation usually hinges on three things: (1) whether the district's LCFF entitlement is growing, holding, or shrinking; (2) whether the state is meeting, exceeding, or deferring the Prop 98 guarantee; and (3) what the district's reserve and one-time vs. ongoing revenue picture looks like. The P-1 Apportionment summary shows the year's current state-funded position.

Source: LAO, "Proposition 98 Education Funding: An Overview"; CDE, "Education Protection Account."

Not every dollar in the apportionment is available for compensation. Roughly speaking, LCFF and EPA are unrestricted (general fund, district discretion), and most everything else is restricted to a specific program by statute.

One important caveat: supplemental & concentration grants

Although LCFF supplemental and concentration grants are technically unrestricted in their accounting, they are subject to the LCFF "must increase or improve services" requirement (5 CCR §15496) — districts must spend them on or for unduplicated pupils, documented in the Local Control Accountability Plan (LCAP). Compensation increases for staff who principally serve unduplicated pupils can qualify; uniform across-the-board raises typically cannot be funded from this portion.

Source: CDE, "Principal Apportionment Summary File Definitions"; California Code of Regulations Title 5, §15494–15497.