What is Local Control Funding Formula?

The Local Control Funding Formula (LCFF) is a new funding formula that increases school funding and directs more resources to California’s highest –need students.  The LCFF gives more local control and flexibility to spend the money, delivering services to our most needy students.   Built on a need criterion, target base grants will be distributed in certain target amounts with those amounts rising when the concentration of English learner, low-income, and foster youth grow.  The LCFF is targeted to add $2.1 billion in funding for the 2013-2014 school year. When fully implemented the LCFF is targeted to increase California’s education spending by $18 billion.   

Old Funding System

School districts used to receive money through categorical funds that could be spent on specific programs.  There were over 40 of these categorical programs, the majority of which have been eliminated under LCFF.  The rest of the money, called the revenue limit, was given out using a complicated and outdated formula. The calculation was different for each district and did not take the needs of students into account.  District could use these funds at their discretion. 

New Funding System (Local Control Funding Formula)

Target Base Grant

The LCFF establishes uniform per-student base grants with different rates for different grade spans. These differences are intended to recognize the higher costs of education at the higher grade levels. 

Supplemental Grant

The LCFF acknowledges that English learner, low-income, and foster youth (EL/LI/FY) students have greater needs that require more resources to address.  For each EL/LI/FY student, districts receive an additional 20% of the adjusted base rate per student.

Concentration Grant

On top of the supplemental grant, districts that have a high proportion (over 55%) of the EL/LI/FY students receive an additional 50% of the adjusted base rate per student for each student above 55% of enrollment.

© OTA 2017