LCFF Frequently Asked Questions (FAQs)
Please note: See CSEA’s LCFF glossary to find the definitions of bolded words.
A. What is Local Control Funding Formula (LCFF)?
The Local Control Funding Formula (LCFF) is how school districts, charter schools and
county offices of education (COE) receive state funding. LCFF was approved by the California
Legislature and Governor Jerry Brown in July 2013.
The goal of the LCFF is to simplify the calculation used to decide how much state money each
local educational agency (LEA) receives. It also gives LEAs the flexibility to use the funds to
achieve their educational goals as long as they encourage meaningful engagement from the
education community in setting these goals.
B. How is the LCFF different from what was previously in place under revenue limits and
categorical funding?
Under the previous funding distribution system, district funding was determined primarily by the
revenue limit amount and the amounts received for categorical programs. Under LCFF revenue
limits most categorical programs have been eliminated and replaced by the total of Base Grants,
Supplemental Grants and Concentration Grants and, if applicable, funding related to hometo-school transportation and Targeted Instructional Improvement Grants (TIIG). Home-to-School
Transportation and TIIG are typically referred to as "add-ons" to the formula.
Since revenue limits and most categorical funding are eliminated, districts have fewer
restrictions on how to use state funding. Instead of getting funds for earmarks, LEAs will now
receive funding based mainly on the number of students, grade levels and student demographics.
They have the flexibility to allocate as much as necessary to anything that will help achieve their
educational goals.
Since school districts will decide what to fund, it is crucial to speak up about the importance of
classified school employees to achieve the district’s educational goals.
The COE receives LCFF funding through a two-part formula with part of the funding for
oversight responsibilities and the other part related to instructional activities.
Under the previous funding formula, County Offices of Education received state funds and local
property tax revenue to conduct a variety of activities. These activities either served school
district staff or served students directly. Generally, the activities fell into four areas: regional
services, alternative education, additional student instruction and academic intervention.
Now, the COE receives LCFF funding through a two-part formula with part of the funding for
oversight responsibility and the other part related to instructional activities.
C. How is the amount of LCFF funding to school districts determined?
LCFF funding is based on the higher of prior year or current Average Daily Attendance (ADA),
and on student characteristics. K-12 districts receive Base Grants depending on grade levels, and
Supplemental Grants and Concentration Grants based on student demographics.
Districts will receive Supplemental Grants (at 20 percent of the Base Grant) for each student, or
ADA, who is a foster youth, an English language learner, or eligible for the Free and Reduced
Priced Meal program. Districts where 55 percent of the students are foster youth, an English
Language Learners or Free and Reduced Priced Meal-eligible students will receive
Concentration Grants for any students it has over the 55 percent that meet these criteria. For
funding purposes, each student is counted only once (unduplicated count) even if they fall
under several categories.
COEs will receive funding for operation costs plus grants for instructional programs.
The COE receives LCFF funding through a two-part formula with part of the funding for
oversight responsibilities and the other part related to instructional activities.
The oversight responsibilities are funded through a COE operations grant, with amounts based
on (1) a minimum grant per county, (2) the number of school districts in the county, and (3) the
ADA in the county attributable to school districts, charter schools, and schools operated by the
county superintendent.
The instructional activities for COEs are funded very similar to school districts. For the pupils
they serve, COEs receive a Base Grant, a Supplemental Grant equal to 35 percent of the Base
Grant for targeted students and a Concentration Grant equal to 35 percent of the Base Grant for
targeted students exceeding 50 percent of enrollment.
D. Is all categorical funding eliminated by the LCFF? Are any categorical programs left?
Most state categorical funding restrictions are eliminated under LCFF.
However, there are approximately twelve categorical programs that remain. They are either
federally required and funded, like special education and child nutrition; were approved by
voters through a statewide initiative, like the after school program; or are required by the courts,
like the Quality Education Investment Act (QEIA).
State funding for Home-to-School Transportation and Targeted Instructional Improvement Block
Grant Programs remain as add-ons to Base, Supplemental and Concentration grants. CSEA
fought to ensure districts receive state money for Home-to-School Transportation.
E. What impact does the LCFF have on Cost of Living Allowances (COLA)?
The LCFF statute provides for an annual COLA increase to the base grant. Because the
calculation for supplemental and concentration grants are based on the amount of the base grant,
there should be an upward adjustment to each district's LCFF funding target. Keep in mind,
however, that under LCFF the COLA becomes an adjustment to the LCFF funding target and
may not be representative of the actual increase in funding that the district can expect to receive.
Also remember, under LCFF districts are not restricted on how the allocate COLA. They also
have the authority to provide increases below, equal to, or above the COLA adjustment.
F. Can LCFF funds be used for classified salaries, to restore classified hours or jobs, or for
professional development?
LCFF is not a restricted fund. It’s the new formula used by the state to determine how much
LEAs should receive. LEAs can use this funding for salaries, restoration of hours or jobs,
professional development, or for any other purpose LEAs and their stakeholders think will help
meet the goals they set in their Local Control and Accountability Plan (LCAP). Each district
will determine what to fund based on its LCAP so participation of classified employees in the
development of the LCAP is vital.
G. What is the Local Control and Accountability Plan (LCAP)?
The LCAP is an important component of the LCFF. It is the vehicle to provide transparency and
ensure engagement at the local level. It is the method by which LEAs are expected to share
information with parents, staff, teachers, local bargaining units, and the community on
performance data, needs, actions, and anticipated outcomes that will guide the use of LCFF
funding.
Under the LCFF, all LEAs must prepare an LCAP by using a state board-approved template and
by consulting with their employees, parents, local bargaining units, and other members of the
education community. The LCAP sets goals for the district with a timeline and ways to measure
progress. The LCAP must include annual targets in eight areas: compliance with Williams
requirements; student achievement; student engagement; school climate; parental involvement;
implementation of Common Core and English Development standards; and course access. A
district with 15 foster youth or 30 or more students of any ethnicity or who are
socioeconomically disadvantaged, English learners, or disabled must set distinct goals for each
of these groups.
Each year, the district must justify how its spending helps achieve the goals in the LCAP. The
district will assess its own progress based on its LCAP and must develop alternate strategies if
there isn’t sufficient progress.
The LCAP is the same for COEs as it is for school districts. The LCAP must describe, for each
COE-operated school and program, goals and specific actions to achieve those goals for all
pupils and each subgroup of pupils identified in statute, including pupils with disabilities, who
are funded through the LCFF, for each of the eight state priorities. School districts and COEs
may additionally coordinate and describe in their LCAPs services provided to pupils funded by a
school district but attending county-operated schools and programs, including special education
programs.
H. What happens if my district fails to meet the goals set in the LCAP?
Districts should revise their LCAPs annually to ensure that they are meeting their educational
goals. Districts that don’t achieve their educational goals after three years will receive help from
the California Collaborative for Educational Excellence (CCEE) established under statute.
The mission of the CCEE is to advise and assist LEAs in achieving its goals established in its
LCAP. Districts that still fail to meet their goals will face a takeover of their educational
programs by the state superintendent.
I. How do I get involved in my district’s LCAP/LCFF planning?
Statute requires school districts to consult and have meaningful engagement with employees,
parents, educators, local bargaining units, and the community to establish their LCAP. Contact
your chapter leadership or labor relations representative if you are interested in being involved in
LCAP or LCFF planning and parental advisory committees, or if your district does not allow or
encourage meaningful engagement.
J. How does the LCFF impact Basic Aid Districts?
Basic aid districts will continue to retain local property tax revenues and continue to see their
funding rise as property tax revenues increase.
K. How does the LCFF impact joint power authorities (JPAs)?
School districts, county offices, and charter schools can continue to participate in and provide
funding to JPAs at their discretion. For those JPAs that are currently direct funded, the LCFF
statute requires that they continue to be direct funded for the next two years.
L. Does LCFF affect Community Colleges?
No, the LCFF only applies to K-12 districts and schools.