School Finances in California: Updates

Financially strained school districts on the rise

State School Chief Tom Torlakson: One student in three attends a school district in financial jeopardy

Here are a couple of excerpts from the California Department of Education Release:

The California Department of Education semiannually receives Interim Status Reports on the financial status of the state's 1,037 local educational agencies (LEA), comprised of school districts, county offices of education, and joint powers agencies. The certifications are classified as positive, qualified, or negative. The new report shows seven districts in negative certification and 120 as qualified.

The number of districts in qualified or negative status declined slightly from last June when the Second Interim Status Report for FY 2010-11 was issued, but overall remain at historic highs. As late as 2006-07, only 22 districts were in negative or qualified status at any time during the fiscal year. 

"The financial emergency facing our schools remains both wide and deep," Torlakson said. "The deep cuts made to school funding—and looming uncertainties about the future—are driving school districts to the brink of insolvency. Plain and simple, our schools need new revenues to get back on solid financial ground." 

Governor's Budget Proposal

Governor's Budget Update

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Presented at Carlsbad Unified School District Board Meeting on February 8, 2012.

Expenditure Reductions (February 8, 2012)

Expenditure Reductions

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School Closure and Reorganized REVISED

School Closures Revised 2 7-12

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School Closure and Reorganization

School Closures Presentation

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CUSD: Financial Pie Charts

Carlsbad Unified: Pie Chart Finances

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Schools and Property Values

Lately I have been asked by several community members to find information regarding the relationship between schools and property values. Below are links to three articles that indicate how student outcomes do in fact have an influence on home prices:

• Neighborhood School Characteristics: What Signals Quality to Homebuyers (1996)
• Do Better Schools Matter? Parental Valuation of Elementary Education (1999)
• Educational Outcomes and House Values (2006)

Here are a few key points:

• The 1996 study suggests that property values reflect student test scores but not school expenditures.  In other words, consumers in this study valued the outcomes and not necessarily the inputs.
• From the 1999 study:  "I find that parents are willing to pay 2.5 percent more for a 5 percent increase in test scores."
• The 2006 study abstract ends with this conclusion: "an increase in test scores by one standard deviation, ceteris paribus, raises house prices by 7.1 percent." 

I hope that these resources are helpful.  Thanks.

Devin Vodicka, EdD
Assistant Superintendent, Business Services