California’s education funding is at a record high. So why are schools short on cash?

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California’s education funding is at a record high. So why are schools short on cash?
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Education funding is almost certain to hit a record high when a new state budget is enacted next month, and yet local school districts are hitting the panic button when it comes to their finances.

But at the same time, a few important things have complicated the flow of dollars to the classroom. One is the rapid growth in expenses for special education. More children are qualifying for additional services, particularly those diagnosed with an autism spectrum disorder. Even preschool-age kids are entitled to services funded by existing school budgets.

The state government’s special education expenses are projected to rise 21% next year, according to the governor’s new budget. The impact on local dollars is even bigger — those funds pay for 61% of special education expenses, according to a legislative analysis. School districts are being squeezed, too, by the rising costs of employee healthcare and pensions. Because those benefits are locally bargained with public employee unions, some argue it’s a problem of their own making. Nonetheless, the multibillion-dollar obligations are steadily growing. School districts have been required to begin paying more into the state teachers’ retirement fund to ensure its solvency.

and its population of school-age children is no longer growing the way it did during most of the 20th century. By law, education dollars are linked to how many children there are in the classroom — which means funding won’t grow at a rate that can keep up with the mounting expenses. “When you look at the dollars that reach the actual schools, the increase in overall funding is being outstripped by the increase in mandated costs,” Gordon said.

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