California School Districts Seek Waivers on Minimum Classroom Spending

School districts across California are increasingly falling short of the state-mandated spending requirements for classroom teachers, prompting a growing number of waivers. Under Education Code 41372, unified school districts are required to allocate at least 55% of their budgets to classroom teachers, while high school districts must ensure a minimum of 50% and elementary districts 60%. Recent reports indicate that the gap between required and actual spending has widened, raising concerns among educators and advocacy groups.

Districts argue that the law, enacted in the 1970s, does not reflect current financial realities and staffing needs. As a result, many have sought waivers to avoid penalties for not meeting the thresholds. David Goldberg, president of the California Teachers Association, emphasized the need for districts to prioritize classroom spending rather than applying for waivers. “When you invest in educators and keep them in your schools, you are investing in the students of your community,” he stated.

Calls for Investigation and Accountability

In January, the California Teachers Association issued a letter to state leaders, including Tony Thurmond, the state superintendent of public instruction, and Rob Bonta, the attorney general, requesting an immediate investigation into the Sacramento County Office of Education. The letter highlighted the Twin Rivers Unified School District, which reportedly holds an unrestricted reserve fund of over $79.6 million while not meeting the required classroom spending threshold.

Goldberg criticized the trend of districts prioritizing administrative salaries and building reserves at the expense of classroom investment. He characterized this pattern as “mismanagement” and noted that many districts cite excessive salaries as a rationale for their failure to meet spending requirements. “It’s just crazy. That’s just like a race to the bottom,” he remarked.

Statistics from a March 27, 2025 fiscal report by School Services of California reveal that nearly 60% of elementary school districts and nearly 30% of unified districts did not meet their spending requirements in the 2023-24 school year. Dr. Michele Cantwell-Copher, Fresno County Superintendent of Schools, acknowledged the importance of the law but indicated a need for modernization. “The way the law measures that investment does not fully reflect how schools operate today,” she stated.

Rising Number of Waivers and Missed Targets

Over the past six years, the number of waivers granted to school districts in the Valley has risen significantly. In Kings County, all 13 school districts have received at least one waiver, with some districts, including Hanford and Lemoore, obtaining waivers for six consecutive years. Similar trends are evident in Tulare and Fresno Counties, where numerous districts have sought exemptions from the minimum classroom spending requirements.

For instance, the Orange Center Elementary District has consistently failed to meet its obligation to allocate 60% of its budget to classroom teachers, reporting allocations of only 55% in 2019-20, 51% in 2020-21, and as low as 38% in 2023-24. Such patterns raise questions about the fiscal management of these districts.

Waivers can be sought for various reasons, including high salaries, financial distress, and small class sizes. However, the majority of waivers granted in the Valley are based on the claim that classroom teacher salaries exceed those of comparable districts. Goldberg expressed skepticism about this rationale, likening it to a situation where all districts claim to be “above average.”

County superintendents responsible for approving waivers maintain that they are adhering to the law but acknowledge the need for legislative review. “Education has evolved significantly since the law was adopted in the 1970s,” said Tricia Protzman, Madera County schools superintendent. She noted that the implementation of the local control funding formula has changed the funding structures for school districts, complicating compliance with the existing law.

In light of these challenges, many districts are calling for a reevaluation of the spending thresholds and the criteria for waivers to better align with modern educational needs. As this issue continues to unfold, the debate over classroom spending and fiscal accountability remains a pressing concern for educators and policymakers alike.