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California Public School Funding

California public school districts receive funding from a variety of federal, state, and local sources. The state uses the Local Control Funding Formula (LCFF) to determine the minimum amount of funding per student for each public school. For most school districts, local property taxes do not fully cover the LCFF guarantee, and the state funds the shortfall to ensure the district receives its minimum allocation.

In about 10% of districts in the state, local property taxes exceed the LCFF guarantee. These districts are referred to as locally funded, basic aid, or excess tax districts, and they get to keep the property taxes above the LCFF guarantee, increasing their funding per student. In Santa Clara County, about half of the 31 districts are locally funded.

San José Unified became a locally funded district in the 2020-2021 school year. The amount of additional funding available to locally funded districts is based on the amount of excess property tax revenue, which varies widely by district. Our financial and enrollment systems have been adjusted to reflect the new funding model so that we are better positioned to serve the students and families who live within the San José Unified boundaries.