Description: This report summarizes findings from our third annual finance survey of California public school districts. Survey responses indicate that districts have experienced notable changes as a result of recent budget reductions, including a smaller workforce, larger class sizes, shorter school years, and less extensive programmatic offerings. Given the slow pace at which the economy is recovering, combined with uncertainty over the outcome of the November election, school districts indicate they are planning for additional reductions in 2012-13. Given these findings, we recommend the Legislature take immediate actions to assist districts in managing their fiscal challenges in 2012-13, as well as initiate long-term improvements to the K-12 funding and accountability systems.