Why do school districts like BUSD struggle to increase revenue to avoid budget cuts?

Berkeley Unified School District faces ongoing budget cuts, layoffs, and likely new fees to meet next-year needs. Districts have limited control over revenue and spending because most funding comes from the state, with a smaller federal share, and much of it is earmarked for specific programs such as special education. California districts rely on the Local Control Funding Formula, which sets funding largely based on attendance and enrollment. The state provides a base amount per student by grade level plus supplemental funds for high-need students, including foster youth, low-income students, and English language learners. Funding is tied to attendance, so absent students reduce district dollars. About half of BUSD funding comes through LCFF, with additional state, federal, and local shares including parcel taxes and facility rentals.

"The short answer: School districts don't have as much control over their revenue or spending as people might think. Most funding comes from the state (plus a small amount from the federal government) and a fair portion of it is earmarked for specific programs, such as special education. And the tools districts do have to raise money are limited."

"The Berkeley Unified School District (BUSD) uses the same funding system as virtually all public school districts in California: The Local Control Funding Formula (LCFF), which determines how much money it gets based primarily on attendance and enrollment. The state provides a base amount per student per grade level plus supplemental funding for high-need students, such as foster youths, low-income students and English language learners."

"All of that adds up to roughly $13,000 each year per student, or over $80 per pupil, for a district like BUSD, depending on the grade level and needs of the student. But that funding is tied to attendance, so if a student doesn't show up, the district doesn't receive those dollars. Those dollars make up the bulk of the district's budget."

"Those dollars make up the bulk of the district's budget. About half of BUSD's funding comes through the LCFF, with 9% from other state funds, according to district documents. Federal funding accounts for about 2%, with about 38% generated locally primarily through parcel taxes and facility rentals."

Read at www.berkeleyside.org