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Chart 1 • Sources of Funding for California Schools<br />
State<br />
61%<br />
Federal<br />
11%<br />
Local<br />
26%<br />
Lottery<br />
2%<br />
Focusing on Proposition 98 funding for K–12 education, the budget assumes spending<br />
of $46.5 billion (state and local funds) in 2005-06 and provides $49.1 billion in 2006-07.<br />
On September 29, 2006, Governor Schwarzenegger signed SB 1133 (Chapter 751,<br />
Statutes of 2006) to implement the settlement of the lawsuit CTA and O’Connell v.<br />
Schwarzenegger, which will restore education funding for Proposition 98 shortfalls in<br />
2004-05 and 2005-06. Totaling $3 billion, these funds will be targeted to low-performing<br />
schools, beginning with $300 million in 2007-08 and $450 million each year thereafter<br />
through 2013-14.<br />
Chart 2 shows the trend in Proposition 98 funding per pupil in K–12 schools from<br />
1995-96 through 2006-07. The chart shows that, under the Budget Act of 2006, schools<br />
will receive Proposition 98 funds averaging $7,777 per pupil based on average daily<br />
attendance (ADA) for 2005-06 and $8,244 in 2006-07. This is an increase of $467 per<br />
ADA, or 6 percent above the revised 2005-06 level.<br />
Chart 2 • Proposition 98 Funding per Pupil<br />
$9,000<br />
$8,000<br />
$8,244<br />
$7,777<br />
$7,000<br />
$7,023 $7,045<br />
Proposition 98<br />
Per-Pupil Funding<br />
$6,000<br />
$5,000<br />
$4,000<br />
$3,000<br />
$4,656<br />
$4,894<br />
$5,223<br />
$5,748<br />
$6,308<br />
$6,678 $6,618 $6,593<br />
$2,000<br />
$1,000<br />
$<br />
95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07<br />
Fiscal Year<br />
128