California Schools Face Enrollment Decline and Budget Crunch

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California Schools Face Enrollment Decline and Budget Crunch
SCHOOL CLOSURESBUDGET SHORTFALLSENROLLMENT DECLINE
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Public school districts across Southern California are experiencing declining enrollment, leading to budget shortfalls and potential school closures. The issue is compounded by lower birth rates, outmigration, and the rise of alternative education options. Despite receiving substantial federal pandemic relief funding, California's public schools have been slow to address the problem, leaving them vulnerable as funding dwindles.

LAUSD Superintendent Alberto Carvalho speaks during a visit to John Mack Elementary school to mark the first day of the school year’s second semester Monday, Jan. 6, 2025, in Los Angeles. Public school districts across Southern California are losing students and, in the years ahead, will likely face difficult choices about closing schools. Lower birth rates and outmigration have contributed to the enrollment drops.

School districts facing these massive deficits should be looking to right size. However, new data from Reason Foundation shows that California’s public schools have been slow to respond to the red ink and loss of students. In fact, California has actually closed fewer public schools in recent years.

California also has a generous hold harmless provision in its funding formula, allowing public schools to collect funding for students they had in previous years but who are no longer at the schools—known as “ghost students.” A Reason Foundation study estimated that California funded 401,00 ghost students in 2022-2023, costing taxpayers $4 billion.

State policymakers should shine a light on the problem by requiring the state to collect and report on vacant and underutilized school buildings annually. That way, taxpayers and other stakeholders can hold public schools accountable for being good stewards of public resources. For their part, local policymakers must tackle enrollment declines and school closures head-on and resist attempts to delay or block plans to reduce their facilities footprint.

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SCHOOL CLOSURES BUDGET SHORTFALLS ENROLLMENT DECLINE CALIFORNIA PUBLIC SCHOOLS EDUCATION FUNDING

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