The 2013–14 budget package replaces the previous K–12 finance system with a new Local Control Funding Formula (LCFF). For school districts and charter schools, the LCFF creates base, supplemental, and concentration grants in place of most previously existing K–12 funding streams, including revenue limits and most state categorical programs.
As part of the LCFF, school districts, county offices of education, and charter schools are required to develop, adopt, and annually update a three-year Local Control and Accountability Plan (LCAP), beginning on July 1, 2014, using a template adopted by the California State Board of Education (SBE). The LCAP is required to identify goals and measure progress for student subgroups across multiple performance indicators such as Basic Services, Student Achievement, Student Engagement, School Climate, Parent Involvement, Common Core, and Course Access.
The Local Control Funding Formula specifies that school districts must, as a condition of receiving state funding, develop a Local Control Accountability Plan (LCAP) to show how their budget aligns with their academic plan by listening to stakeholders, gathering input from the community on spending priorities, building an understanding of how budgets are planned and build, and demonstrating budget transparency.