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Local Control Funding Formula Fact Sheet

Local Control Funding Formula Fact Sheet pertaining to the implementation of funding for fiscal year 2013-14.

The Local Control Funding Formula (LCFF) was signed into law July 1, 2013. It is the largest change to California’s school finance model in almost 40 years and went into effect immediately. More than $42 billion from state revenues and local property tax revenues will be applied to the LCFF in 2013–14. Of that amount, $2.1 billion has been appropriated by the Legislature to begin a planned eight-year transition to the new formula, whereby local educational agencies (LEAs), including county offices of education (COEs), school districts, and charter schools, will be brought towards full LCFF funding.

The formulas to calculate LEA entitlements are extraordinarily complex during the transition period with a number of changes to be implemented in the 2013–14 and subsequent fiscal years. This fact sheet is focused on how the California Department of Education’s (CDE) School Fiscal Services Division will transition the flow of funds to LEAs from the old structure (revenue limits, general purpose entitlements and categorical programs) to the new (LCFF grade span base grants, supplemental and concentration grants).

LCFF Funds Will Flow through the Principal Apportionment

While the specific entitlement calculations will change as part of the new LCFF, the LCFF funds will be allocated as part of the existing Principal Apportionment process. The funds will continue to flow through a combination of local property taxes and state funds and the state funds will continue to be a mix of funds from the state General Fund and Proposition 30 Education Protection Account (EPA) funds.

The Principal Apportionment is a series of apportionment calculations that adjust the flow of state funds throughout the year as information becomes known.

Local property tax revenues flow to LEAs at different times of the year based on statutory timelines and formulas that are, for the most part, unrelated to the LCFF. The processes and timelines for allocating property tax revenues, and in-lieu of property taxes for charter schools, are unchanged by LCFF. The EPA payments will be made quarterly at the end of September, December, March, and June. (More information about EPA is available on the EPA Web page []). The remaining state funds for LCFF will be paid through the Principal Apportionment timelines already established in statute (Information about the Principal Apportionment payment schedule is available on the Principal Apportionment Web page []).

How the LCFF State Share Will be Updated Throughout the 2013–14 Fiscal Year

The CDE cannot immediately determine how much an LEA is entitled to receive during the transition period under LCFF, including the components of LCFF such as an LEA’s supplemental or concentration grant, for three reasons:

Nevertheless, state aid for LCFF is currently flowing to LEAs. Because the greater part of funding that LEAs will receive for LCFF ($40 billion) is based on what they received in 2012–13, CDE can reasonably estimate the amount of state funds that an LEA will receive for LCFF. Consequently, consistent with past practice the prior-year funding level served as a basis to provide operating funds to LEAs beginning July in the Advance Principal Apportionment. State funds for LCFF will flow in 2013–14 as follows:

2013–14 Principal Apportionment Process for LCFF
Critical Milestones to Implement the LCFF Entitlement Calculations and Apportionments
Additional Resources

Inquiry Contacts

Contact E-mail

LCFF Funding and Apportionment

LCFF Accounting in the Standardized Account Code Structure (SACS)

LCFF Local Control Accountability Plan

Miscellaneous Questions

Proposition 30 Education Protection Account Funds

Questions:   Office of Principal Apportionment and Special Education | | 916-324-4541
Office of Charter Apportionments and District Reorganization | | 916-324-4541
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