Excess ERAF: A Review of the Calculations Affecting School Funding

Mar 6, 2020 - We recently found that some counties are calculating excess ERAF in ways that seem contrary to state law and shift too much property tax revenue from schools to other agencies. We have three specific concerns related to the calculation of excess ERAF that together affect more than $ 350  m illion in annual property tax revenue.
https://lao.ca.gov/Publications/Report/4193

The 2017-18 Budget: Analysis of Special Education “Disconnect”

Mar 1, 2017 - (Roughly ten SELPAs will be most opposed to the first option, as they have sufficient property tax revenue to continue covering the higher statutory funding levels. These SELPAs w ould see some of their property tax revenue go to cities, counties, and/or trial courts, consistent with existing related statutory provisions.)
https://lao.ca.gov/Publications/Report/3598

The 2026-27 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 4, 2026 - Local Property Tax Estimates Seem Reasonable. The administration ’s property tax estimates are only $93  million lower than our November estimates over the 2024 ‑25 through 2026 ‑27 period (a difference of less than 0.1  percent).
https://lao.ca.gov/Publications/Report/5110

The 2025‑26 Budget: Fiscal Outlook for Schools and Community Colleges

Nov 20, 2024 - Regarding local property tax revenue, our estimates are up $789   million relative to the June 2024 estimates. This increase reflects recent data showing an uptick in home sales, which generate additional property tax revenue as properties are reassessed at market value.
https://lao.ca.gov/Publications/Report/4940

The 2025-26 California Spending Plan: Proposition 98 and K-12 Education

Nov 10, 2025 - The budget provides $9.7  million to offset the reductions in property tax revenue experienced by basic aid districts affected by the Eaton and Palisades fires. These fires caused significant property damage in two basic aid districts —Beverly Hills Unified and Santa Monica-Malibu Unified.
https://lao.ca.gov/Publications/Report/5087

A Historical Review of Proposition 98

Jan 18, 2017 - Most Revenue Adjustments Have Entailed Local Property Tax Shifts. Of the 24 revenue –related actions with Proposition  98 implications, 19 involved property tax shifts. The vast majority of the property tax shifts (17 of the 19) involved shifting local property
https://lao.ca.gov/Publications/Report/3526

The 2025-26 Budget: Proposition 98 Guarantee and K-12 Spending Plan

Feb 13, 2025 - The state calculates the COLA rate using a price index published by the federal government. This index accounts for changes in the cost of goods and services purchased by state and local governments across the country during the preceding year.
https://lao.ca.gov/Publications/Report/4963

The 2017-18 Budget: County Offices of Education and The Minimum State Aid Provision

Feb 10, 2017 - Under the LCFF for COEs (similar to school districts), local property tax is counted first for meeting each COE ’s overall LCFF allotment, with the state making up any gap. In a county where local property tax revenue is sufficient to fund all of its LCFF allotment, the state still must provide its minimum state aid allotment.
https://lao.ca.gov/Publications/Report/3554

The 2021-22 Budget: The Fiscal Outlook for Schools and Community Colleges

Nov 18, 2020 - Similar to the June budget, we also assume the state addresses a recent issue related to property tax allocations in certain counties (see box below). Figure 3 Updating Prior ‑ and Current ‑Year Estimates of the Minimum Guarantee (In Millions)
https://lao.ca.gov/Publications/Report/4298

Increasing Transparency of County Office of Education Spending

Mar 14, 2024 - (For  example, with special education funding that is transferred to school districts and certain local property tax transferred to trial courts.) In addition, COEs conduct a wide range of activities with LCFF —their primary state funding source.
https://lao.ca.gov/Publications/Report/4883