LANDMARKS IN SCHOOL GOVERNANCE
The State Constitution of 1879 created a state Superintendent of Public Instruction and the state Board of Education. A system of free common schools was established.
State Statutes as of 1965 mandated that the state provide textbooks and regulated aspects of teacher employment. School boards were given broad authority over most aspects of education. Most funding was derived through local property taxes.
Serrano v. Priest Court Decision-1971. The Serrano decision resulted in a major change in school governance. From the court opinion two principles evolved that are major structural pillars of today's school finance system: (1) a goal of equal general purpose funding for districts (on a per-student basis) and (2) a prohibition on wealth-based differences in K-12 funding.
Collective Bargaining-1976. Collective bargaining represents a second important change in school district governance. Districts that enter into collective bargaining agreements share power with unions over a wide range of decisions that affect district educational policies and the distribution of district resources. Unions also have several powerful tools (such as strikes) to obtain their desired goals. As a result, power sharing established through collective bargaining requires districts to pay special attention to the needs of teachers and classified employees as expressed by their unions and balance those needs with other district needs.
Proposition 13-1978. Over time, the property tax limit substantially eroded the independence of school districts and governing boards:
- Leadership Shifted to the State. In 1965, district governing boards and superintendents were key community leaders, charged with developing local support for property tax levies. After 1978, these same officials now looked to Sacramento for leadership to find funding for program improvements. Increasingly, schools and districts blamed the state for the problems experienced by local schools--fairly or not.
- With Leadership Came Greater Involvement. In 1965, state funding came to districts with few strings. After 1978, the increased role of the state encouraged a greater state focus on the efficient and effective expenditure of K-12 funds. This led to increasing state involvement in the allocation of state funds and other K-12 policy choices.
- Increased Management Complexity. In 1965, school finance was relatively simple--districts had great flexibility to craft a budget to best address student needs. School district budgets were completed by March in order to provide the time needed for planning and developing the next year's school program. After 1978, state and federal categorical programs and mandates required districts and schools to creatively assemble an integrated education program from a complex mosaic of fund sources and program restrictions. In addition, the state budget calendar conflicted with the local budget and planning process. Districts had to wait until the end of the state budget process-June or later-to learn about the next year's funding levels and state program requirements.
While Proposition 13 made major finance and governance changes, the average citizen may have noticed few changes in the operation of schools. The initiative did introduce major new dynamics into the governance and finance system of schools. Over time, the effects of these changes have become more apparent.
Proposition 98-1988. Proposition 98 re-enforced the importance of the state in financial matters. By requiring a minimum level of spending, the initiative guaranteed education a higher budget priority than almost all other program areas. Even ten years after its passage, however, it was not clear whether Proposition 98 has increased total spending for K-12 over the long run. Nevertheless, the initiatives did serve to highlight the important state role in the K-12 system and, in particular, school finance.
--Extracted from "A Brief History in School Governance" by the Legislative Analysts Office.

