| Back to A Guide to California's School Finance System |
| Need help with terminology? Check the glossary. |
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Local Sources of Revenue (January 2010) |
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Property Taxes |
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School districts receive local property taxes as part of their revenue limit income. The original formula was set by the Legislature in the early 1970s. When Proposition 13 passed in 1978, the state took over the allocation of property taxes as well as of state aid. In the early 1990s, additional property taxes were shifted from cities, counties, and special districts to schools, thus reducing the amount of money needed from state taxes.
In some districts the amount of property taxes exceeds the revenue limit. For many years these districts could keep all of it and still receive the state "basic aid" of $120 per student (ADA) [or a minimum $2,400 per district] that is guaranteed by the California Constitution. In 2003-04 the Legislature decided that state categorical aid funds covered the $120, and the additional basic aid payment was discontinued. The number of these districts, called basic aid districts, has historically ranged from between 60 to 80, depending on the year. However, in recent years, the number of basic aid districts has surpassed 100. |
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Parcel Taxes |
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After Proposition 13, school districts could no longer ask voters to raise property taxes for schools. Proposition 13 did authorize special taxes (non ad valorem) on parcels of property if two-thirds of the electorate in the district approves.
Based on the best available information, from 1983 through November 2009, districts have held 503 parcel tax elections. Only 273 (54%) of these won the necessary two-thirds vote, while another 193 achieved a majority vote. |
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Surplus Property |
| Districts may lease or sell unused school buildings or school sites. The use of these funds is restricted to construction or deferred maintenance projects. A district with no deferred maintenance needs may use the money for other purposes. |
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School Foundations and Private Contributions |
| More than 600 districts have formed private foundations to receive contributions or grants from individuals and local businesses. In 2007, the California Consortium of Education Foundations estimated foundations raised more than $150 million to support local schools. |
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Bonds and Developer Fees |
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Initially districts needed a two-thirds vote to sell general obligation bonds. These bonds may now be authorized by 55% of local voters if the school board chooses to accept additional requirements. From 2001 through 2008, 538 districts sought 55% approval, and 449 (83%) of the elections succeeded. By contrast, 516 (55%) of the 940 two-thirds' vote elections passed from 1986 through 2008.
Districts may also levy developer fees on new construction or reconstruction within district boundaries. These funds may only be used for construction, acquisition, or major improvement of facilities. |
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For More Information |
| See the 2009 EdSource report Local Revenues for Schools: Limits and Options in California. |
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All rights reserved. Revised February 09, 2010.
URL: http://www.ed-data.k12.ca.us
