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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

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