California’s school finance system: the basics
California’s current school finance system evolved through a combination of various court decisions, legislative actions, voter-approved initiatives, and government regulations. The result is a system in which school revenues are controlled at the state level.

Each year, the California Legislature and governor determine how much state and property tax funding will go to public education. The provisions of a 1988 voter-approved constitutional amendment, Proposition 98, set the minimum level of funding. State leaders are free to spend above this amount if they choose. They also can—and do—use their power over the state budget to influence educational change by creating categorical programs that prescribe how school districts spend some of the funds allocated to them. Both the state and federal governments earmark a large portion of school funding for specific purposes or to serve specific groups of students. These programs represent a sizable part of a school district’s budget and can have a major effect on local expenditure decisions.

School districts are responsible for managing the money they receive within both state and federal guidelines. In turn, the policies, employee union agreements, and practices of the local school district determine the amount of financial and operating discretion an individual school has.
EdSource is a provider of non-partisan information on school funding: www.edsource.org

Further nonpartisan fiscal information on current funding for public education is available through the Legislative Analysts’ Office: www.lao.ca.gov

Developer Fees - where do I go to pay and how much will it cost?
You must first obtain a Certification of Payment of Developer Fees form through the City of Scotts Valley or the Santa Cruz Planning/Building Department. The approved rate effective May 10, 2011 is $3.30 for Residential. The approved rate effective May 13, 2008 is $0.47 for Commercial and $0.07 for Mini-Storage. The approved rate for Senior Citizen housing remains unchanged at $0.47.