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Categorical Aid (February 2008) |
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Definition |
| Support from the state and federal governments that is targeted for particular categories of children or families, special programs and special purposes. This money is granted in addition to school districts' general purpose revenue, and it almost always has restrictions on its use. |
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How It Works |
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Categorical funds from both the state and federal government have grown considerably over the years. The federal government's share of the total K-12 education budget in California was about 8% for years. In 2003-04, it grew to almost 13%, but by 2007-08 had fallen to almost 10%.
Depending on definitions, California funds about 85 categorical programs. These account for about one-third of the state's education budget. Many of the categorical programs are scheduled for legislative review with an eye toward changing or discontinuing the program—an option which rarely happens. Most categorical programs have strong supporters who argue for continued funding. |
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The Programs |
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Categorical programs range from very big to very small.
The largest program, by far, is Special Education for students with physical, emotional or learning disabilities. These services are mandated by federal and state law, and they account for much of the growth in categorical funding over the years. The next largest categorical is a voluntary one, the reduction in K-3 class sizes. Almost all districts in California accept this money along with the strict regulations that accompany it. The largest federal program is commonly called "Title I." It supports children whose families qualify as being in poverty. Districts receiving Title I funds must comply with the considerable regulations under No Child Left Behind. The federal government also supports child nutrition, child care, and Special Education (among others). Although all districts receive some categorical aid, the impact varies widely according to the characteristics of a district's student population. In some districts this money approaches 40% of their budgets. |
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Impact |
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The severity of the state's budget deficit in 2008 has heightened the need to re-examine the structure of school finance, including how the money is allocated and what regulations are attached.
Over the years the Legislative Analyst has recommended revisions to categorical aid programs, ranging from minor adjustments to major changes. "Fixing" categorical aid has, however, proven to be politically challenging. Most of the programs have strong defenders, and some policymakers believe that they need to ensure that certain educational goals or students are protected. |
Education Data Partnership
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All contents copyright © 2010, Education Data Partnership.
All rights reserved. Revised February 09, 2010.
URL: http://www.ed-data.k12.ca.us
