Fiscal Transparency in the Era of California's Local Control Funding Formula

Abstract

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. v ACKNOWLEDGMENTS First and foremost I would like to express my gratitude to my family for their unconditional love and support during this journey. Specifically to the love of my life Faris, and my sons, Zahir and Amir who inspire me to be a better person every day. They are my guiding light and bring peace to my heart. I am lucky to have such caring siblings, Cesar, Ulises, and Wendy who are strong role models to my children and are always willing to step in when needed. I am grateful for the warm and kind words of encouragement from my husband's family. I thank my comadres for sharing tears of joy and struggle with me. I am blessed to have my mother Silvia who has instilled in me a strong work ethic, humility, and faith. Without her support, it would have been nearly impossible to finish my dissertation. I honor my late father Cruz for teaching me the importance of building trusting relationships and that quality time with loved ones is to be cherished. This dissertation is dedicated to my late abuelita Maria whose consejos, fuerza, and prayers shaped the person I am today.