California state law establishes the system for funding public schools. State leaders largely decide how much money is available to schools each year as part of the state budget process.

In 2013, California adopted a new formula for deciding how much money each school district receives, called the Local Control Funding Formula (LCFF).

School districts will decide how to use the funds, but under the new system they must get input from their local communities. They also have to tie their budgets to improvement goals by creating a Local Control and Accountability Plan (LCAP).