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Budget Overview

 

School Funding in California

California funds districts based on student needs, not just enrollment. Districts get a base grant per student who attends, with added funds where needs are greater. This is called the Local Control Funding Formula (LCFF). Adopted in 2013, the Local Control Funding Formula (LCFF) directs extra dollars to districts with higher numbers of high-need students (English learners, students from low-income households, and foster/homeless youth).
 
School funding in California relies on state tax revenues - it swings with the booms and busts of the state's economy. 
 
 
LCFF Funding
How dollars are calculated:
 
  • Base Funding for each attending student (grade-span adjusted) → +20% Supplemental for each student who is EL/low-income/homeless/foster → +65% Concentration for each high-need student above 55% of enrollment.
  • Equity Multiplier (newer): Extra support can flow to school sites where >70% of students are socioeconomically disadvantaged (added in 2023–24).
  • Local Control with Guardrails: LCFF funds are largely unrestricted, but districts must use supplemental/concentration funds consistent with the law’s intent to increase/improve services for high-need students.
  • Accountability & Engagement: Districts must produce an annual Local Control Accountability Plan (LCAP) with community input; transparency and local oversight are key to ensuring funds benefit high-need students as intended.
Why LCFF matters: Since 2013, LCFF replaced most categorical funding, shifting decisions from Sacramento to local districts—so local priorities and outcomes drive how dollars are used.
 

Community-Funded/"Basic-Aid" vs. LCFF-Funded Districts

Community Funded

Some school districts - about 14% of the school districts in California - are funded primarily through local property taxes rather than state funds. These are called community-funded school districts (previously known as "Basic Aid.") These districts serve approximately 5% of the total public school enrollment in California. On a per student basis, these school districts spend approximately 31% more than their LCFF-funded. Lafayette School District is an LCFF-Funded school district.

 
 
Sources: ED100 | Casbo.org

The Importance of Local Funding

 

In Lafayette, relatively few students qualify for the categories of additional funding through LCFF, so the District receives limited supplemental funding and no concentration funding. Equity is essential—but LCFF’s base grant still does not fully cover the cost of a well-rounded education for any district.

Local support, specifically parcel taxes and education foundation donations, is what closes the gap and sustains programs beyond the basics.

 

Why Local Funding Matters

Local Funding Fills the Gap
  • State revenue is volatile. California’s school funding swings with the economy; it can fall fast in recessions and rebound inrecoveries. Local dollars help stabilize programs through the ups and downs.
  • Local funds stay local. Community measures (e.g., parcel taxes) and education-foundation donations supplement LCFF and are used for priorities set close to home. (Passing local taxes in California requires high voter thresholds.) In Lafayette, Measures J&B and L (parcel taxes) and Lafayette Partners in Education (LPIE) consist of 20% of the District's annual general fund revenue.

 

Responsible Fiscal Stewardship and Budget Reductions

 

LAFSD has taken a multi-year approach to identify new revenue and savings to mitigate costs, reduce deficit spending, and achieve fiscal stability.

For the 24-25 schoolBudget Reductions year, the Governing Board adopted $2.1M in savings and reductions recommended by the District Budget Advisory Committee. However, costs continued to exceed revenue and the District is relying on one-time reserves to cover the gap. For 2025-26, the Board approved an additional $2M in ongoing savings and reductions. The District is facing another $2 million savings and reduction target for 2026-27. These changes represent 10% of the District's general fund budget.  

 

Missed our Budget Town Halls?

See below for the presentations and additional resources regarding our budget reductions.

 

Your Voice Matters!

Please take a few minutes to complete the 2026-27 Budget Planning Survey to share your feedback on the budget reduction recommendations. The Board will review initial feedback at the February 11 meeting.

 

Taking Action Now for the Future: Continued Fiscal Stewardship

District Reserves
District Reserves
 
California requires all school districts to maintain a minimum reserve for economic uncertainty. Our Board policy sets a local reserve target of 5% in addition to the state-required 3%, for a total reserve of 8% of our General Fund. Reserves are our safety net: they stabilize cash flow, cushion unexpected costs (e.g., facilities emergencies, Special Education placements), and help us weather state revenue swings without immediate cuts to classrooms. Healthy reserves also support our credit rating and reduce borrowing costs. Importantly, reserves are one-time savings, not ongoing revenue—so they can bridge short-term gaps but cannot sustain ongoing expenses.
 
 
Parcel Tax Feasibility
 
The Lafayette School District (LAFSD) is grateful to the Lafayette community for its support of our schools. More than 15% of the District's revenue comes from voter-approved local parcel taxes. Local funding helps us maintain high-quality academic learning programs for our students in science, technology, engineering, math, and the arts, attract and retain highly qualified teachers, keep our class sizes small, and ensure safe and clean schools. 
 

Thanks to the Lafayette community, Lafayette elementary and middle schools are currently supported by two parcel taxes:

Measure J&B Parcel Tax (2014)  Measure L (2020) 
Ballot Language: 
"Without increasing existing tax rates, and to preserve high quality academic programs in Lafayette elementary and middle schools in math, science, art, and music; attract and retain highly qualified teachers; keep classroom technology, science labs and instructional materials up-to-date, and maintain manageable class sizes, shall Lafayette School District extend the expiring $539 local school tax, with an exemption for seniors, an annual cost-of-living adjustment, and with all money staying in Lafayette to benefit our public schools?[4]
 

Ballot Language:

"To protect the quality of education and prevent deep cuts to Lafayette elementary and middle school programs in math, science, engineering, technology, reading, music, and the arts, maintain manageable class sizes to enhance student achievement, and attract and retain highly qualified teachers, shall Lafayette School District establish a $290 parcel tax for 7 years only, providing $3,011,360 annually in dedicated funding for neighborhood schools, with independent citizen oversight, an exemption for seniors, and all money staying local.” View the full Measure L Resolution here.
Terms:
  • Brings in approximately $5.7 million annually
  • No expiration date
  • Senior exemptions
  • Annual inflation adjustment, capped at 3%
Terms:
  • Brings in approximately $3 million annually
  • Expires in June 2027
  • Senior exemptions
  • Annual inflation adjustment, capped at 3%
 

Our locally elected Governing School Board will need to make important decisions by 2026. We’re also exploring the feasibility of asking our community to renew and possibly increase LAFSD’s Measure L parcel tax set to expire in 2027.

Measure L Supports

 

As of January 2026, the Board has engaged in a series of public discussions regarding the expiration of Measure L and the feasibility of a parcel tax renewal. These discussions have included:

 

November 2025: Fall feasibility study results presented by Dr. Tim McClarney of True North Research, Inc.
 
 
January 2026: Parcel tax feasibility

Learn More about LAFSD's Budget

 
To learn more about the District's Budget by reviewing budget reports and presentations, visit the Business Services page.
 
To learn more about Parcel Taxes and Local Funding in LAFSD, visit the Local Funding Matters page.
 
To learn more about the Budget Advisory Committee, visit the District Budget Advisory Committee page.