Legislative Analyst's Office, December 1998

1998 Cal Facts Program Trends Part I

K-12 School Revenues

1997-98

• Proposition 98 is the shorthand term for the state's constitutional minimum spending requirement for K-14 education. This annual spending guarantee is met from two revenue sources: state aid and local property taxes.



• The state provided just over half of all school revenue in 1997-98, while local government sources (property taxes and other local income) contributed 33 percent.



• The remaining revenues came from the federal government (9 percent) and the state lottery (2 percent). Lottery revenues provide around $116 per student. Seventy-five percent of lottery funds are used towards teacher salaries and benefits.

K-12 School Expenditures

1997-98

• School "revenue limits" are general purpose funds--supported by both state funds and local property taxes--that provide the resources for basic school programs. These funds account for almost two-thirds of all school expenditures.



• Remaining school expenditures provide for specific educational needs--such as special education, transportation, and class size reduction. These "categorical" funds constitute around one-third of school spending.

The Average Cost of a California School

1995-96

• The costs of services delivered in the classroom account for about two-thirds of K-12 costs. Over half of the total costs are for teachers, with an additional 14 percent for instructional aides, pupil support personnel (counselors, psychologists, nurses), and books, supplies and equipment.



• Nonclassroom school site costs comprise 29 percent of school spending. These costs consist of school site leadership (administrators and clerical support), building maintenance, instructional support, and other expenses.



• Administration, which consists of district administration and county and state oversight, accounts for 6 percent of the costs of an average school.

Growth in K-12 Enrollment Will Slow Significantly

• K-12 enrollment is projected to increase by 1.8 percent in 1998-99, bringing total K-12 enrollment to 5.7 million students.

• Growth rates in each of the next three years are expected to decrease to between 1 percent and 1.5 percent. This is in contrast to the last three years, when rates exceeded 2 percent.



• Each 1 percent increase in K-12 enrollment requires an increase of approximately $240 million (General Fund) to maintain annual K-12 expenditures per pupil.

Proposition 98 Funding Per Student Continues to Rise

• California's spending per pupil (adjusting for inflation) continues to rebound from lows during the recession.



• In 1998-99, Proposition 98 spending per pupil increases to $5,735. This represents an increase of $281, or 5.2 percent, above 1997-98.



• Despite recent increases in per-pupil spending, California funding per pupil remains below the national average.

Demand for New Teachers Increases Significantly

• Implementation of kindergarten through grade three class size reduction has significantly increased the need for teachers.

• The number of teachers with new emergency permits rose significantly in 1996-97 to meet the immediate need for teachers due to class size reduction.



• Increases in new teaching credentials include recent graduates from teacher preparation programs as well as past emergency permit holders and out-of-state teachers.

Higher Education Enrollment Growth To Be Moderate and Sustained

Average Annual Headcount Growth, by Decade

• The Department of Finance projects that total headcount enrollment at UC, CSU, and the community colleges in 2006 will be 417,000 higher than in the peak enrollment year of 1991. This would represent an annual increase of 1.2 percent from 1991 through 2006.



• By comparison, enrollments grew by an average of 2.7 percent per year from 1970 through 1991.



• By historical standards, projected enrollment growth into the 21st century will be moderate and sustained.

Resources for Higher Education at Historic Highs

Inflation Adjusted Spending Per Student

• Spending per student at the University of California (UC), California State University (CSU), and California Community Colleges (CCC) are at historic highs over the past 25 years.



• These resources in 199899, after adjusting for inflation, are 10 percent, 18 percent, and 10 percent higher than the average from 1973 through 1998 for the UC, CSU, and CCC, respectively.

California Public Universities

1997-98 Full-Time Equivalent Students

CSU	FTE Students		University of California	FTE Students
Bakersfield	4,585		Berkeley	28,737
Chico	12,857		Davis	22,053
Dominguez Hills	7,070		Irvine	16,593
Fresno	14,880		Los Angeles	31,886
Fullerton	17,826		Riverside	9,190
Hayward	11,142		San Diego	17,873
Humboldt	7,037		San Francisco	3,573
Long Beach	20,229		Santa Barbara	17,746
Los Angeles	14,448		Santa Cruz	10,160
Maritime Academy	492		Total UC	157,811
Monterey Bay	1,533
Northridge	19,554
Pomona	14,819
Sacramento	17,885
San Bernardino	10,088
San Diego	24,434
San Francisco	19,654
San Jose	19,292
San Luis Obispo	15,758
San Marcos	3,433
Sonoma	5,882
Stanislaus	4,889
Total CSU	266,790

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College Participation Rates Are At Or Above Historic Highs

Percent of 18 to 24 Year Olds in College

• Californians of prime college-going ages (between the ages of 18 and 24) are attending UC, CSU, and the community colleges at historically high rates.



• Participation rates for these Californians in 1996, for example, were 20 percent, 4 percent, and 11 percent higher than in 1977 for UC, CSU, and the community colleges, respectively.

Continue to 1998 Cal Facts Program Trends Part II

Return to 1998 Cal Facts State Finances

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