1. California Governor's Budget Summary 1997-98, p. 79.

2. Ibid.

3. California Governor's Budget Summary 1987-88, p. 24.

4. Ibid.

5. Chart supplied by John Mockler, Strategic Education Services, in testimony to the Little Hoover Commission, February 26, 1997.

6. Richard Rothstein and Karen Hawley Miles, Where's the Money Gone? Changes in the Level and Composition of Education Spending, Economic Policy Institute, 1995, p. 1.

7. Mockler, op. cit.

8. Chart supplied by State Superintendent of Public Instruction Delaine Eastin, in testimony to the Little Hoover Commission, February 26, 1997.

9. "EdSource Report: Long-Term Funding for California Schools," EdSource, March 1995.

10. Mockler, op. cit.

11. Eastin, op. cit.

12. "Quality Counts: A Report Card on the Condition of Public Education in the 50 States," Education Week, January 22, 1997, Vol. XVI, p. 75.

13. Lawrence O. Picus, "Cadillacs or Chevrolets?: The Evolution of State Control Over School Finance in California," Journal of Education Finance, Summer 1991, pp. 33-59.

14. Ibid.

15. Ibid.

16. Ibid.

17. John B. Mockler and Gerald Hayward, "School Finance in California: Pre-Serrano to the Present," Journal of Education Finance, Spring 1978, pp. 386-401.

18. Allan R. Odden and Lawrence O. Picus, School Finance: A Policy Perspective, McGraw-Hill Inc., 1992, p. 11.

19. Serrano v. Priest, 18 Cal. 3d 728, p. 747.

20. Ibid, p. 750.

21. Ibid, p.388.

22. "Resources: Are They Adequate, Distributed Equitably, and Focused on Learning," Education Week, January 22, 1997.

23. Picus, Cadillacs, op. cit., p. 56.

24. Picus, Cadillacs, op. cit.

25. Michael Heise, "State Constitutional Litigation, Educational Finance and Legal Impact: An Empirical Analysis," University of Cincinnati Law Review, Vol. 63, No. 4, Summer 1995, p. 1735.

26. "School Finance Litigation," The Education Commission of the States, January 22, 1997. States where the systems have been ruled unconstitutional are: Alabama, Arizona, Arkansas, California, Connecticut, Kentucky, Massachusetts, Missouri, Montana, New Jersey, Tennessee, Texas, Washington (1978), West Virginia and Wyoming. States where the systems have been upheld are: Arizona, Colorado, Georgia, Idaho, Maryland, Michigan, Minnesota, North Dakota, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Washington (1974), Wisconsin and Virginia.

27. Michael Heise, "State Constitutions, School Finance Litigation, and the "Third Wave": From Equity to Adequacy," Temple Law Review, Vol. 68, No. 3, 1995, pp. 1152-1176.

28. Ibid.

29. "School Finance," Educate America: A Call for Equity in School Reform, The National Coalition of Educational Equity Advocates, http://www.nwrel.org/cnorse/booklets/ educate/7.html, p. 1.

30. Heise, University of Cincinnati Law Review, op. cit., pp. 1764-1765.

31. William N. Evans, Sheila E. Murray and Robert M. Schwab, "Schoolhouses, Courthouses and Statehouses After Serrano," Journal of Policy Analysis and Management, Vol. 16, No. 1, pp. 10-31.

32. Robert L. Manwaring and Steven M. Sheffrin, "Litigation, School Finance Reform and Aggregate Educational Spending," University of California, Davis, September 1996, pp. 20-21.

33. Deborah M. Kazal-Thresher, "Merging Educational Finance Reform and Desegregation Goals," Education Policy Analysis Archives, Vol. 1 No. 7, June 6, 1993, p. 4.

34. "School Financing System Found Constitutional," New York Times, December 7, 1996.

35. "Illinois Court Delivers Ultimate Setback in School Finance Suit," Education Week, October 30, 1996.

36. Evans, Murray and Schwab, op. cit., p. 11.

37. Davis S. Liebschutz and Donald J. Boyd, "Education Spending Faces Demographic and Other Pressures," State Fiscal Brief, Center for the Study of the States, Nelson A. Rockefeller Institute of Government, December 1996.

38. "School Finance Must Support Education Reform," State Education Leader, Vol. 13, No. 2, Fall 1994.

39. Ibid.

40. Thomas B. Timar, "Politics, Policy and Categorical Aid: New Inequities in California School Finance," Educational Evaluation and Policy Analysis, Summer 1994, Vol. 16, No. 2, p. 148.

41. Paul M. Goldfinger, Revenues and Limits: A Guide to School Finance in California, School Services of California Inc., 1996, p. 49.

42. Legislative Analyst's Office Budget Analysis, 1997-98, p. E-60.

43. Goldfinger, op. cit., pp. 44-46.

44. "1996-97 School Finance Highlights," EdFact Fact Sheet, EdSource, October 1996.

45. Donald R. Tetreault and Lawrence O. Picus, "California," Public School Finance Programs of the United States and Canada, 1993-94, American Education Finance Association and Center for the Study of the States, Nelson A. Rockefeller Institute of Government, State University of New York, 1995, p. 151.

46. Ibid.

47. Picus, "Cadillacs," op. cit., p. 50.

48. John Murphy and Lawrence O. Picus, "Special Program Encroachment on School District General Funds in California: Implications for Serrano Equalization," Journal of Education Finance, Winter 1996, p. 369.

49. Lawrence O. Picus, "An Update on California School Finance: 1992-93: What Does the Future Hold," Journal of Education Finance, Fall 1992, p. 156.

50. Cathy S. Krop, "The Finances of Education Governance Reforms in California," Rand, 1996, p. 81.

51. "Arts Charter School Switches Sponsorship to Another District," Grass Valley Union, June 29, 1996.

52. Lawrence O. Picus, "California School Finance 1993-94: Schools on Shaky Ground," April 1993, p. 10.

53. Timar, op. cit., and Picus, April 1993, op. cit.

54. Murphy and Picus, op. cit., p. 385.

55. Serrano v. Priest, op. cit.

56. "Reform of Categorical Education Programs: Principles and Recommendations," Legislative Analyst's Office, April 1993.

57. "California's K-12 School Finance System: An Overview and Recommended Changes," Legislative Analyst's Office, testimony presented to the Little Hoover Commission, February 26, 1997.

58. "Rebuilding Education in the Golden State: A Plan for California's Schools," Policy Analysis for California Education (PACE), April 1995, p. 14.

59. Legislative Analyst's Office, testimony to Little Hoover Commission, op. cit.

60. "Recommendations of the California Constitution Revision Commission to the Governor and the Legislature," California Constitution Revision Commission, August 1996, p. 53.

61. "Long-Term Funding for California Schools," EdSource Report, EdSource, March 1995, p. 11.

62. Lawrence O. Picus, "You Add $7 Billion in Taxes and What Do You Get? Four Years Older and Deeper in Debt...California School Finance, 1995," April 1995, pp. 7-8. And "Paying the Piper and Calling the Tune," comments to Education Summit, February 16, 1994.

63. Lawrence O. Picus, "California School Finance 1996: Still Driving a Chevrolet, But Threatened by the Imports," remarks prepared for State of the State Roundtable, American Education Research Association, New York, April 1996.

64. Legislative Analyst's Budget Analysis, p. E-105.

65. "The Struggle to Pay for Special Education," Time, November 4, 1996, p. 82.

66. Jack Lucas, East San Gabriel Valley SELPA Director, in testimony provided to the Little Hoover Commission, March 26, 1997.

67. Patricia Anthony, "Funding Special Education," Education Finance Workshop, National Education Association, May 24-25, 1993.

68. Ibid.

69. David O. Krantz, "Funded into Perpetuity: The Real Special Education Crisis is Not Rising Costs, But Student Outcomes," Education Week, Vol. XVI, No. 18, January 29, 1997.

70. "Special Education -- The Other School Finance System," EdSource Report, June 1995.

71. Legislative Analyst's Budget Analysis, p. E-106.

72. Thomas B. Parrish and Jay G. Chambers, "Financing Special Education," Special Education for Students With Disabilities, Vol. 6, No. 1, Spring 1996, p. 121.

73. "Special Ed System Needs Special Help," San Jose Mercury News, August 28, 1996.

74. Legislative Analyst's Budget Analysis, p. E-105.

75. Goldfinger, op cit, p. 157.

76. Ibid, p. 156.

77. Lucas, op. cit.

78. Ibid.

79. Goldfinger, op. cit., p. 110.

80. Sarge Kennedy, SELPA Director, in material provided to the Little Hoover Commission.

81. Goldfinger, op. cit., p. 98.

82. Lucas, op. cit.

83. Anthony, op. cit.

84. Parrish and Chambers, op. cit., pp. 134-135.

85. "New Funding Model for Special Education, Final Report," Legislative Analyst's Office, Department of Education and Department of Finance, November 1995, p. 4.

86. Parrish and Chambers, op. cit., p. 133.

87. EdSource Report, "Special Education," op. cit., p. 6.

88. Lucas, op. cit.

89. David V. Gross, member of State Advisory Commission on Special Education, in testimony to the Little Hoover Commission, March 26, 1997.

90. Parrish and Chambers, op. cit., p. 136.

91. "The ABCs of Investing in Student Performance," Education Commission of the States, November 1996, p. 36.

92. Chester E. Finn Jr. and Diane Ravitch, Education Reform 1995-96, Education Excellence Network, Hudson Institute, August 1996, p. 14.

93. Ibid.

94. Karen J. Mitchell, "Reforming and Conforming: NASCD Principals Discuss School Accountability Systems," Rand, 1996, p. 33.

95. "States Conducting Student Competency Testing for High School Graduation," Clearinghouse Notes, Education Commission of the States, April 1996.

96. Eric A. Hanushek, et al, Making Schools Work: Improving Performance and Controlling Costs, Brookings Institution, 1994, p. xv.

97. Richard J. Murnane and Frank Levy, "Teaching the New Basic Skills: Principles for Educating Children to Thrive in a Changing Economy," Martin Kessler Books, 1996, p. 14.

98. Richard D. Laine, Rob Greenwald and Larry V. Hedges, "Money Does Matter: A Research Synthesis of A New Universe of Education Production Function Studies," Where Does the Money Go? Resource Allocation in Elementary and Secondary Schools, Corwin Press Inc., 1995.

99. Allan Odden and William Clune, "Improving Educational Productivity and School Finance," Educational Researcher, Vol. 24, No. 9, p. 7.

100. Ibid, p. 8.

101. Daniel M. Koretz, Sheila Barron, Karen J. Mitchell and Brian M. Stecher, "Perceived Effects of the Kentucky Instructional Results Information System," Rand, 1996, p. iii.

102. Richard F. Elmore, Charles H. Abelmann and Susan H. Fuhrman, "The New Accountability in State Education Reform: From Process to Performance," Holding Schools Accountable: Performance-Based Reform in Education, Brookings Institution, 1996, p. 70.

103. Koretz, Barron, Mitchell and Stecher, op. cit.

104. Elmore, Abelmann and Fuhrman, op. cit., p. 69.

105. Odden and Picus, op. cit., pp. 293-294.

106. "The Relationship Between Educational Expenditure and Student Achievement: When Does Money Matter?," Education Partners Working Papers, National Conference of State Legislatures, 1996.

107. Odden and Picus, op. cit., 294.

108. "Academic Bankruptcy," Clearinghouse Notes, Education Commission of the States, November 27, 1996.

109. Ibid.

110. Lynn Olson, "Starting Over," Teacher Magazine, February 1995.

111. Mitchell, op. cit., pp. viii-ix.

112. Ibid, p. x.

113. Murnane and Levy, op. cit., p. 109.

114. Elmore, Abelmann and Fuhrman, op. cit., p. 85.

115. Ibid, p. 96.

116. "Restructuring Public School Finance," The 1995-95 Budget: Perspectives and Issues, Legislative Analyst, p. 141.

117. Daniel Rubinfeld, "California Fiscal Federalism: A School Finance Perspective," California Constitutional Reform Conference, June 8, 1995, p. 10.

118. Neil D. Theobald and Lawrence O. Picus, "Living with Equal Amounts of Less: Experiences of States with Primarily State-Funded School Systems," Journal of Education Finance, Summer 1991, pp. 5-6.

119. Odden and Picus, op. cit., p. 50.

120. J. Fred Giertz, "Regional and Statewide Property Tax Base Sharing for Education," Education Finance Workshop, National Education Association, May 24-25, 1993.

121. Ray Reinhard, research institute director for School Services of California Inc., in testimony to the Little Hoover Commission, January 29, 1997.

122. PACE, op. cit., p. 14.

123. California Constitution Revision Commission, op. cit., pp. 55-56.

124. Maria LaGanga, "Sausalito Schools: Money Isn't Enough," Los Angeles Times, May 16, 1997, p. 1.

125. Laine, Greenwald and Hedges, op. cit., pp. 44-45.

126. Ronald F. Ferguson and Helen F. Ladd, "How and Why Money Matters: An Analysis of Alabama Schools," Chapter 8 in Holding Schools Accountable: Performance-Based Reform in Education, Brookings Institution, 1996, p. 265.

127. Laine, Greenwald and Hedges, op. cit., p. 58.

128. Ferguson and Ladd, op. cit., p. 288.

129. Lawrence O. Picus, "Does Money Matter in Education? A Policymaker's Guide," American Education Finance Association, March 1995, p. 16.

130. Education Partners Working Papers, op. cit., p. 4.

131. William Duncombe, John Ruggiero and John Yinger, "Measuring the Cost of Education," Chapter 10 in Holding Schools Accountable: Performance-Based Reform in Education, Brookings Institution, 1996.

132. Eric A. Hanushek, "The Quest for Equalized Mediocrity: School Finance Reform Without Consideration of School Performance," Where Does the Money Go? Resource Allocation in Elementary and Secondary Schools, Corwin Press Inc., 1995.

133. David Boaz and R. Morris Barrett, "What Would A School Voucher Buy? The Real Cost of Private Schools," Cato Institute, March 26, 1996.

134. Rothstein and Hawley Miles, op. cit.

135. Picus, March 1995, op. cit., p. 17.

136. Odden and Clune, op. cit., p. 6.

137. National Coalition of Educational Equity Advocates, op. cit., p. 2.

138. Ibid, p. 4.

139. "Recommendations for Public School Support," School Support Committee report to the State Board of Education, November 14, 1974.

140. Mockler, op. cit.