Friday, July 19, 2019

What Are “Basic Aid” Districts?

Almost all districts in the state get their basic funding from property taxes plus additional support from the state, typically around $5,000 per student. This amount is known as “revenue limit” funding.

However, 127 “basic aid” districts, usually in communities with high-value property, generate more of their basic funding from property taxes than the total “revenue limit” funding they would normally get from the state.

Under regulations established decades ago, they are allowed to spend these “excess” property tax funds on their students, without being bound by state revenue limits.

However, not all basic aid districts serve an affluent student population. As a result of the state’s budget crisis, the number of basic aid school districts has grown in recent years because the amount they are eligible to receive through revenue limit funding has dropped below the amount they are able to generate entirely from their property taxes.

But in general, research shows that the existence of basic aid districts has helped sustain the disparities in funding among California school districts.

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