California School Finance

Class Size Reduction

Class Size Reduction (CSR), an incentive program to reduce class size in early grades, began in California in 1996. Participating schools, which must maintain a ratio of one teacher per group of 20 students or fewer, receive a special allocation of funds from the state. CSR classes must be conducted in separate classrooms to ensure funding and schools may choose to provide either a full day with small classes or a half day (with partial funding).

The program applies to grades K–3. In 1997–98 the state also authorized funding to expand an existing program to reduce class sizes in two grade 9 courses: English and one other core academic subject—mathematics, science, or history/social science.

K-3 Funding and Participation
CSR represents a substantial state investment. In 2006–07 the total allocation for the program was $1.76 billion. These funds are provided to districts based on the number of K–3 students who attend school in reduced-size classes. The funding, which is adjusted annually based on the cost of living, is about $1,000 per pupil (or half that amount for half-day programs).

Almost all of the state's 891 eligible districts in 2004–05 participated in the program. In 2004-05 881 districts plus 184 charter schools offered CSR classes, most with a full-day program. The number of CSR classes grew steadily from the initial 51,612 in 1996–97 through 2002-03. However there was a slight dip in the percentage of K-3 enrollment in CSR classes in both 2003-04 and 2004-05.

Ninth Grade Funding and Participation
In 2005-06 the state apportioned $110 million for 9th grade CSR, and school districts received $192 per 9th grade pupil taught under the program.

In 2004-05 the equivalent of 257,332 9th graders—46.8% of 9th grade enrollment—took part for a full year in CSR English classes. In the other core subject areas, the equivalent of 140,289 participated in mathematics, 5,602 in social studies, and 1,477 in science. A total of 746 schools in 249 districts were in the high school program.

CSR Legislation
Class Size Reduction, K-3 (Senate Bill 1777, 1996)
In 1996, the Legislature created the Class Size Reduction (CSR) program, which provided incentives for school districts to reduce K–3 classes to a pupil-teacher ratio of no more than 20 to 1. This legislation originally provided annual incentive funding of $650 for each student in a smaller class and an option of $325 for students in a staggered session in which the pupil-teacher ratio is no more than 20 to 1 for half the day. The next year these incentives were increased and annual inflation adjustments were added. A one-time allocation of $25,000 per added classroom was also made available for full-day classes to improve facilities or acquire portable classrooms.

The legislation also specified that if a classroom exceeded an enrollment of 20.44 students—based on the number of students between the start of the school year and April 15—the district would lose its entire CSR apportionment for that classroom.

Senate Bill 311, which became law in 2004, reduces the penalty if a school modestly exceeds the annual cap. A 21.95 student average is the new maximum that triggers the full penalty, with interim deductions of 20%, 40%, and 80% for each one-half student above the 20.44 class average.

Class Size Reduction, 9th Grade (1998)
Two years after the original K–3 Class Size Reduction (CSR), the California Legislature expanded an existing high school CSR program to concentrate on high school freshmen. To qualify for the $135 per-pupil incentive, high schools must offer one or two ninth-grade courses with an average of 20 students per teacher and a maximum of 22 per participating class. This bill also requires that one of the courses be in English while the other can be in mathematics, science, or social studies. Programs that are excluded from participating in this program include Special Education classes and Necessary Small Schools.