RE: Question 2: District Level-What's in the Plan

Background for Question 2: The draft Master Plan envisions that in addition to money from the state, local districts would continue to help pay for schools. Regarding Recommendation 45, the Plan states "Historically, local communities provided the majority of school funding through locally generated revenue streams. Subsequent to the passage of Proposition 13, in 1978, the State has assumed the role of providing the majority of school funding. Today, nearly 30 percent of public school funding still comes from local sources, and we believe that local communities should still share in this level of revenue generation to support an adequate base of education funding?. Districts currently have very limited ability to raise revenues locally. The bulk of 'local' revenue in the current financing system comes from the property tax, and property tax revenues allocated to local school districts are a dollar-for-dollar offset to state aid." The Plan cautions, however, that "local revenues raised from an optional tax must not become a means of mitigating inadequate basic educational funding that is a statewide responsibility. Rather, revenues raised from a local option tax must be available wholly at local discretion to augment all other funds received for the educational program."

Recommendation 45 is that "The State should provide local school districts with options for generating revenue locally to supplement their adequate funding base, and should provide local community college districts the same options for generating revenue locally." (Options are stated in 45.1, lowering the voter approval threshold for parcel taxes; 45.2, regarding a sales and use tax; and 45.3, lowering the voter approval threshold for a property tax override and assuring a state-guaranteed yield per pupil through a state equalization mechanism.)