California’s economy has remained resilient, with strong state revenues driven by personal income, corporate, and sales taxes. 

Because public schools, including Ģ����Ƶ schools, are funded primarily through the state budget, strong state revenues should translate into stronger support for schools. If the state is flush, why are many Los Angeles schools hurting for funds in 2026?

The reality is more complex. Geographically-based enrollment declines, unfunded state mandates, and overall cost increases have created significant financial pressure for many Los Angeles schools. 

How Much of California’s Budget Goes to Education?

Though there is a statewide fiduciary commitment to funding education, the precise amount varies each year. 

Since the passage of Proposition 98 in 1988, California has guaranteed a minimum level of funding for K–12 schools and community colleges, typically accounting for roughly 40% of the state budget. Because the funding amount is determined by a percentage of total revenue instead of a set number, California schools directly benefit from more resources when the state is flush with higher tax income. And when there is less cash coming in, schools immediately receive a smaller amount. 

How Does CA State Funding Work?

Through California’s Local Control Funding Formula (LCFF), the state distributes baseline funding for all students, and then additional supplemental funds for special circumstances such as students from low-income communities, in foster care, experiencing homelessness, and English-Language Learners. 

California is a leader in national educational policy reform. The LCFF provides school districts with local control of their general funds. This program has been praised for allowing flexibility in helping distribution match actual local needs. 

However, sometimes state budgets do not precisely align with the requirements that legislators have put in place. At the same time, schools are increasingly expected to implement new programs, reporting requirements, and student support without always receiving dedicated funding to fully sustain them.  In practice, districts are often required to absorb these additional responsibilities within existing funding structures, stretching already limited resources even further. 

Why are Los Angeles Schools at a Disadvantage?

Enrollment is one of the main factors in school funding. A significant portion of school funding is tied to Average Daily Attendance (ADA), meaning schools receive funding based on how many students are consistently attending. Across the state, the average “per-student” allocation is $20,427 per student, the highest ever. However, enrollment is determined by average daily attendance. In Los Angeles, both total enrollment and daily average attendance have had major decreases in the past 7 years. 

Schools across the country experienced sharp enrollment declines following the COVID-19 pandemic, and many districts have still not returned to pre-pandemic attendance levels. Chronic absenteeism has direct negative effects on school funding. 

In Los Angeles, several local factors have compounded these challenges. More than 50,000 people have moved out of the county, the largest city population decline in the US, according to 2024-2025 US Census numbers. The Los Angeles fires displaced many families, and disruptions to the entertainment industry have caused ripple effects in the total population. And many families are cautious about sending students to schools due to immigration enforcement. 

When attendance declines, schools receive less funding, regardless of whether operational costs remain the same or continue to rise. In addition to reduced enrollment, Los Angeles remains one of the most expensive regions in the country, increasing the cost of staffing, facilities, transportation, and student support services. It’s in the top 2% most expensive cities in the country, and the top 11% in the state.

The Ģ����Ƶ Foundation exists to help close the gap between public funding and what scholars truly need to thrive. Through philanthropy, advocacy, and partnership, the Foundation works to ensure that Ģ����Ƶ scholars continue to receive an excellent college-preparatory education, regardless of broader funding challenges facing public schools.��

Sources:

The Ģ����Ƶ��


Understanding California’s Budget and its Impact on Schools��





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California public schools, including charter schools like , are free and open for all students to attend, Public schools funding is based on student characteristics, enrollment and attendance and allocated to schools from the State based on the Local Control Funding Formula.  However, Charter Schools receive less public funding than traditional public schools and pay fees to the Districts for oversight and compliance.  

The Need for Charter Schools

In public schools, almost all of the funding is provided by a split of state and local resources, with a smaller share coming from federal sources that is intended to complement specialty areas, not provide core foundational operating funds. 

Affluent areas may pass additional bonds or parcel taxes or endow an educational foundation. Every aspect of the school’s resource base is affected by the local community’s economy.  Parents in wealthier areas often have more available free time to commit to volunteering within the classroom and advocating with administrations, and may have more expendable income to spend on targeted school initiatives. 

These structural and societal factors pile up to create a momentum of imbalance that charter schools that serve historically underfunded communities seek to assuage.

Charter schools were created to help address the structural imbalances and inherently different needs of specific groups, often including historically underserved communities. The “charter” in charter schools is an agreement between the school and the government. In exchange for more flexibility in running the school, the school will provide the government with more data and active oversight. This charter provides schools the autonomy to adjust to the real needs of their students and experiment with the implementation of cutting-edge understanding of best educational practices while preserving the need for increased accountability. 

Charter School Funding Sources

The main source of funding for charter schools is calculated by the LCFF (Local Control Funding Formula), which adjusts funds as available fund information becomes known. This is a combination of state funds and “in-lieu of property taxes” funding. It generally works out to be significantly less than equivalent local public school funding. There are also special grants that may contribute:

• Charter School Facility Grant Program (helps offset facility costs for schools serving low-income families)
• New schools can receive the Public Charter School Grant Program (PCSGP) to help with startup costs.
• Special Education funds (IDEA) help with the education of students with disabilities

While current government policy creates an excellent opportunity for innovative charter schools to exist, it leaves gaps in the necessary funds to support those same initiatives. Charter schools are expected to make up those gaps with internal fundraising efforts. 

Ģ����Ƶ Foundation – Building a Base for Success

The Ģ����Ƶ Foundation was created to help close the gap that is created between current funding sources and ideal funding for charter schools. It is composed of enthusiastic thought leaders committed to transformative public education through engaged philanthropy and advocacy. 

The Foundation’s mission is to “raise resources and visibility for the Ģ����Ƶ network of schools, advocate for policies that improve quality public education for historically underserved youth, and build partnerships to strengthen Ģ����Ƶ schools and the communities that Ģ����Ƶ serves. We believe in the unlimited potential of our scholars and work to shine a bright light on what is possible for all public schools.”

The Ģ����Ƶ Foundation has already granted more than $31 Million in funds that have gone directly to services bringing educational excellence to 25,000 alumni and an additional 12,000 current scholars across 25 schools.

If you are passionate about improving the quality of public education in our Ģ����Ƶ Communities, we encourage you to learn more and get involved with the Ģ����Ƶ Foundation.��

Sources:

The Ģ����Ƶ��
Ģ����Ƶ Foundation: Who We Are



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Brett serves as a Managing Partner at Sequence Equity, a private investment firm focused on developing innovative businesses in sports and technology. 

A longtime leader in the Los Angeles community, he is an active angel investor and leader in the Los Angeles area, serving on the boards of BeBe, InterMix Media, and PacSun. 

Brett co-founded Intermix Media/MySpace, which sold for $580M, and later served as President of Adknowledge, where he increased their revenue tenfold. Brett also co-foundedCrosscut Ventures, leading five funds for a total of over $350M in assets under management.  

We asked Brett about how his experience building high-impact organizations has influenced his work with the Ģ����Ƶ Foundation.

You specialize in investing in innovative businesses and have started a few yourself.  In what ways do you see Ģ����Ƶ changing the face of education currently and in the future?

“I look to Ģ����Ƶ to continue innovating, especially as we see huge leaps forward in technology and AI. The opportunity is to use these advancements in ways that benefit our scholars, support our teachers, and strengthen Ģ����Ƶ as a whole.

What makes Ģ����Ƶ special is that we’ve resisted falling back on what’s comfortable or familiar. Instead, we’ve consistently challenged ourselves to raise the bar. First, focusing on graduating high school, then on college acceptance, and now on college graduation.

We continue to push ourselves to expand what’s possible for our scholars. And by 2030, I expect we’ll be asking ourselves what the next bar is to raise – because we know our scholars have enormous promise and potential, and it’s our job to help them realize it.”

You’ve created a great impact through education, including founding LA Tech Cares to provide tech, academic, and mental health resources to underserved students. What lessons or priorities do you bring to the Ģ����Ƶ Board of Trustees to change the face of education?

“One of the biggest lessons I’ve learned through LA Tech Cares is that you can accomplish far more than you think if you’re willing to roll up your sleeves and take action.

If you can see it, you can be it. Progress doesn’t always require endless process; you have to be willing to act. Too often, the real choice is action versus inaction.”

I also strongly believe that advances in technology can benefit all students, and especially the students we serve. Our responsibility is to make sure those tools are used in ways that expand opportunity.”

What are you proudest of during your time on the Ģ����Ƶ Board of Trustees?

“Ultimately, what I’m most proud of is the quality of the education we’ve been able to help deliver to our students. That’s 99% of what I care about. Knowing that Ģ����Ƶ scholars are receiving an excellent education and opportunities that can truly change the trajectory of their lives is what matters most.”

Brett’s leadership reflects a deep belief in what’s possible when innovation is paired with purpose. His perspective continues to help shape a future where every Ģ����Ƶ scholar has the opportunity to thrive.

Scope and Scale of LAUSD

The Los Angeles Unified School District (LAUSD) is one of the largest public school systems in the nation, serving a vast and diverse population across the city of Los Angeles and surrounding communities. 

LAUSD includes:

• 710 square miles
• 4.8 million city residents
• 45 Unified school districts
• 1500+ schools
• 83,000+ employees
• Average of 400,000-550,000 students annually

With this scale comes both opportunity and complexity. The district is governed by an elected Board of Education and led by a Superintendent. The Los Angeles County Committee on School District Organization is a publicly elected committee that manages decisions about district organization and territories. The financial and educational services for the county are supported by the Los Angeles County Office of Education.

Family Preference

In most school districts in the United States, students are assigned to school districts purely by residential address and have no choice in the process. Unlike this default system, LAUSD incorporates student preferences into the equation. 

LAUSD operates within a school choice framework. Families may choose to apply to a range of  programs that best meet their child’s needs, such as:

• Magnet programs
• Public charter schools, includingĢ����Ƶ College-Ready Public Schools
• Dual-language immersion programs
• Gifted and high-ability pathways
• STEM academies

There are some communities within the geographical boundaries of Los Angeles that have strict district assignments, such as Torrance, Beverly Hills, and Arcadia. Other than those exceptions, families have a broader range of choice in LA County than most other districts. 

Trends Over Time

In recent years, LAUSD has experienced declining  enrollment, driven by factors such as rising housing costs, shifting demographics, the lasting effects of COVID-19, and now, immigration raids. As enrollment decreases, so does funding, creating real challenges for schools working to serve students at the highest level. 

These shifts have deepened the importance of community-centered support systems—shifts schools and organizations like Ģ����Ƶ take seriously. Across Los Angeles, we are seeing real investments in:

• Mental health and legal resources
• Attendance and re-engagement efforts
• Family support services 

Ģ����Ƶ: A Charter Network in LAUSD

Ģ����Ƶ operates as a nonprofit network of public charter schools  in Los Angeles, serving scholars within the broader LAUSD system. 

Because charter schools are considered public schools in California, all are funded by LASUD public funds and are free for all scholars. Through the Los Angeles school choice system, any family can choose to apply to an Ģ����Ƶ school through the regular application process. 

. Ģ����Ƶ serves:

• 25 Total Schools 
• 16 High Schools
• 9 Middle Schools
• 12,000+ scholars
• 8 California Distinguished High Schools (2026)

The Los Angeles public school system is complex, but at its core, families have agency. Within that system, Ģ����Ƶ exists to expand what’s possible for scholars in  historically underserved communities within the district. By combining academic rigor, innovative programming, and community-rooted support, Ģ����Ƶ schools are designed to help scholars thrive in the classroom and beyond.

Sources:

The Ģ����Ƶ��

A passionate advocate for mission-driven work, Kara brings forward-thinking strategy and vision to everything she does, including her service on the Ģ����Ƶ Foundation Board of Trustees.

We asked Kara about how her experience working with hundreds of organizations informs her leadership on the board of the Ģ����Ƶ Foundation.��

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“What I am proudest of is helping champion the belief that access to an excellent education should never be determined by circumstance. Ģ����Ƶ has built a system where students who have historically been underestimated are instead expected to achieve extraordinary outcomes.

That commitment to equity and opportunity has been  tested in very real ways during my time on the board. We’ve navigated two profound national moments at the same time: the global health crisis of COVID-19 and the national racial reckoning following the murder of George Floyd. Those moments required educational institutions everywhere to respond with urgency, compassion, and clarity. Almost overnight, we had to rethink how education could continue, how we could support families facing unprecedented disruption, and how we could ensure our students felt seen, supported, and safe during a period of deep national pain and reflection.

What stood out to me during those times was the steadiness of the Ģ����Ƶ community. Our educators, school leaders, and staff rose to the moment with extraordinary commitment. The board’s role was to help provide resources so the organization could continue to serve scholars without losing sight of its mission. Institutions reveal their character most clearly during times of challenge, and Ģ����Ƶ demonstrated exactly the kind of leadership our scholars deserve.

What I wish more people understood is that Ģ����Ƶ is not simply a network of schools. It is an engine of generational opportunity.

Scholars who may have once been underestimated leave Ģ����Ƶ seeing themselves as future doctors, engineers, entrepreneurs, and leaders. That transformation is the story more people need to hear and support.

When you create an environment with high expectations, exceptional educators, and a culture that truly believes in the potential of every student, young people rise in ways that redefine what people thought was possible.”

The Ģ����Ƶ Foundation is grateful to have Kara Sax’s leadership and vision as she works alongside our community toward a future where every scholar has the opportunity to thrive.

The (GSTG) is a valuable program that provides additional financial support to create a more diverse and prepared teacher pipeline to serve schools and subject areas where educators are most needed.

What is the Golden State Teacher Grant?

The Golden State Teacher Grant is awarded as part of the full student aid package while a potential teacher is enrolled in a teacher training program. Candidates who qualify for financial aid support must commit to serving in priority K-12 or preschool programs across California. 

As part of the one-year Ģ����Ƶ Teacher Residency, teachers-in-training are encouraged to apply for the grant as part of their complete financial aid package. To date, 31 excellent candidates have received the Golden State Teacher Grant and are already working as teachers in . 

How Does it Help? 

This grant program helps address the need for quality teacher candidates for high-priority schools by:

• Expanding access to the teaching profession for aspiring educators
• Creating a more diverse workforce 
• Supporting schools serving historically underserved communities
• Providing well-prepared teachers in high-needs subject areas
• Strengthening the teacher pipeline during a time when demand outstrips supply

In California, subjects such as the STEM fields (science, technology, engineering, and math) are historically harder to staff with qualified applicants. While the grant is not exclusively for any subject area, it is designed to prioritize candidates pursuing fields that have more demand than qualified supply.  

The program also requires that applicants already be enrolled in a Commission on Teacher Credentialing-qualified professional preparation program. The Ģ����Ƶ Teacher Residency meets this requirement and is a perfect pipeline for training qualified teachers.

How Do Ģ����Ƶ Teacher Residents Apply? 

Ģ����Ƶ Teacher Residents have been eligible for a $10,000 grant in exchange for agreeing to a 2-year teaching commitment within an Ģ����Ƶ school district. 

Ģ����Ƶ already offers a financial support package to all accepted Teacher Residents in combination with the Marshall Teacher Residence. This totals $52,000 and includes additional benefits such as a laptop to use with classwork and ongoing mentorship. 

Because the cost of living is almost 50% higher in Los Angeles County than the national average, a minimum of over $60,000 is required to meet basic living expenses for a single adult per MIT’s Living Wage Calculator.  That means the Golden State Teacher grant can be the difference for someone being able to meet living expenses or not. 

How Does Ģ����Ƶ Benefit? 

The Golden State Teacher Grant has been awarded to 31 Ģ����Ƶ professionals in the past three years:  

• 12 grant recipients in the 2025-2026 school year
• 12 grant recipients in the 2024-2025 school year
• 7 grant recipients in the 2023-2024 school year

These recipients are already teaching in Ģ����Ƶ schools, where they are  expanding opportunities for scholars in subjects such as English Language Arts (ELA), math, and science. These subjects are harder to fill with qualified applicants, so supporting a training pipeline for those areas benefits the community quickly and powerfully.  

Our grant recipients directly benefit Ģ����Ƶ scholars. Scholars with a stronger proficiency in ELA are more likely to be satisfied with their career and salary, and be eligible for future promotions and management positions. Those who are interested in pursuing STEM careers, which can offer 25-100% and more earning potential than average, are learning from qualified teachers to get college-ready. 

Golden Opportunities

Ģ����Ƶ supports and advocates for the continuation of the Golden State Teacher Grant in providing valuable resources for our teacher residents to complete their training program. 

Every dollar spent on a teacher candidate through the Golden State Teacher Grants program strengthens a pipeline of well-prepared teachers who are deeply committed to the communities Ģ����Ƶ serves.��

Sources:

Congratulations to the receiving this distinction:

• Ģ����Ƶ Dr. Olga Mohan High School
• Ģ����Ƶ Judy Ivie Burton Technology Academy High School
• Ģ����Ƶ Leichtman-Levine Family Foundation Environmental Science High School
• Ģ����Ƶ Marc & Eva Stern Math and Science School
• Ģ����Ƶ Margaret M. Bloomfield High School
• Ģ����Ƶ Patti and Peter Neuwirth Leadership Academy
• Ģ����Ƶ Susan and Eric Smidt Technology High School
• Ģ����Ƶ Ted K. Tajima High School

The California Distinguished Schools Program honors schools across the state demonstrating exceptional academic performance, progress in closing achievement gaps, and expanded opportunities for students. This year’s honorees represent the very best of what public education can accomplish when both educators and scholars are supported to thrive.

Thank you for being part of the Ģ����Ƶ community and helping make this extraordinary accomplishment possible. Together, we celebrate this milestone and the many scholars whose futures continue to shine brighter because of it.

Research consistently shows that teachers are the single most important factor influencing student success. Yet, our nation’s schools have operated with the same outdated model for more than 70 years, leading to teacher burnout and turnover.

In 2023, —one of the nation’s largest nonprofit charter networks,​ with 96% of Ģ����Ƶ scholars accepted to college—launched a bold pilot at three schools. The pilot​ program, Reimagining the Ģ����Ƶ Educator, intended to advance scholar success through redesigned​ school schedules that strengthen quality instruction time, increase scholar enrichment opportunities,​ and prioritize teacher well-being.

The result: teachers report better work-life balance and are staying in the classroom at higher rates.​ Ģ����Ƶ scholars are showing meaningful gains in reading and math, absenteeism is down, and more​ high schoolers are earning college credit.
​Read more about Reimagining the Ģ����Ƶ Educator here.

Los Angeles-based Bustamante is a Partner at Greycroft, where he focuses on consumer investments through the firm’s Consumer Products Fund. 

Bustamante serves on several non-profit boards that work with historically underserved communities. At La Luz, he founded the organization’s endowment program and ran the microloan program. 

Introduced to Ģ����Ƶ by a fellow board member, Bustamante shared why our mission resonates personally:

“My grandmother came to the U.S. from Mexico and did everything she could to provide a comfortable life and strong educational opportunities to her three daughters.  Had Ģ����Ƶ existed then, it would’ve provided enormous benefit to my mother and her two sisters…I hope the organization continues to exceed the expectations of the students and families it serves and ultimately helps create more pathways to higher education and successful lives.”

Bustamante brings deep investment experience to the Board of Trustees, having previously served as a senior investor at Stripes Group and Sonoma Brands Capital. He is guided by past partnerships, including those with Reformation (acquired by Permira), Hu Products (acquired by Mondelez), Refinery29 (acquired by VICE), Pond5 (acquired by Shutterstock), True Botanicals (acquired by NextWorld Evergreen), Made by Nacho, Bachan’s, Merit, Versed, and Beekeeper’s Naturals. 

He holds a B.A. in Political Science from Brown University.

We look forward to Bustamante sharing his valuable insight and guidance. 

Traditional Public Schools

Traditional public schools are operated by local school districts and typically serve students based on geographic boundaries. These schools follow district-wide policies related to curriculum, staffing, and scheduling.

Traditional public schools play a vital role in their communities and serve a broad range of scholars with diverse needs.

Charter Schools

Charter schools are public schools that operate independently of school districts under a performance-based contract. This independence allows charter schools to implement innovative educational models while remaining accountable for academic outcomes.

Charter schools are open to all and often admit students through a lottery when demand exceeds available seats. They are evaluated regularly and must meet clearly defined performance standards to remain open.

Magnet Schools

Magnet schools are public schools that offer specialized programs or themes, such as STEM, performing arts, or language immersion. They are typically operated by school districts and may draw students from across multiple neighborhoods or districts.

Some magnet schools have selective admissions criteria, while others use a lottery system. Their specialized focus is designed to attract a diverse student population and provide unique learning opportunities.

Key Differences at a Glance

• Governance: Traditional public and magnet schools are district-run; charter schools are independently operated
• Enrollment: Traditional public schools serve neighborhood scholars; charter and magnet schools may use lotteries or application processes
• Flexibility: Charter schools have greater autonomy to innovate
• Focus: Magnet schools center on specialized themes; charter schools often emphasize innovation and college readiness

Choosing the Right School

Every scholar is unique, and the right school depends on a family’s priorities, values, and educational goals. Understanding the differences between charter, magnet, and traditional public schools helps families to make informed decisions.

Ģ����Ƶ College-Ready Public Schools is one of the nation’s largest and most successful public charter school networks, serving more than 12,000 scholars across 25 middle and high schools in Los Angeles’ most diverse and historically underserved neighborhoods. From piloting breakthrough learning models to building a pipeline of highly qualified educators, Ģ����Ƶ creates the conditions for brilliance to thrive.