How we Got Here
- nrehkopf
- Dec 4, 2025
- 2 min read
Understanding California Public School Funding
We live in one of California's most desirable communities. Our home values are high. Our schools win awards.
So why are we funded like a struggling district? Why are we on the brink closing schools?
California has the 4th largest economy in the world and the highest GDP in the United States -
BUT ranks 37/50 in per pupil education spending.
California has under-funded education for decades. Prior to Proposition 13 passing in 1978, California spent more on education and was ranked in the Top 5 for per pupil-spending.
Proposition 13 has a negative impact on public-school funding in California by sharply reducing the revenue available to local school districts and introducing long-lasting inequality. By capping property taxes and limiting reassessments to when a property is sold or significantly improved, Prop 13 dramatically shrank the amount of property-tax funding districts could raise — a source that had previously helped fund K-12 schools.
But my property taxes are astronomical?
Because of Prop 13, a home’s property tax is based on its purchase price (the “base-year value”) rather than current market value — with the basic property taxes capped at 1% of this “base-year value” and annual increases capped at 2%.
That means longtime owners who bought their homes decades ago — when prices were much lower — often pay dramatically less in property taxes than someone who just bought a similar home today. This means two homes next to each other, nearly identical in size, could have a 10× difference in tax bills, depending only on when they were purchased.
Here in Ross Valley, we’ve had less housing turnover resulting in fewer updated assessments than some neighboring communities in Marin. While this is financially advantageous for the homeowners, it means the school funding continues to decrease.
Here is an illustrative example of how this plays out:
Scenario | Assessed value basis | Estimated total annual tax (1.1–1.2%) |
Longtime owner — bought decades ago when home was $300,000 | Assessed value ≈ $300,000 (plus ≤2%/yr increase) | ~$3,300–$3,600/year |
New buyer — buys similar home today at $1.5 million (approx. current median neighborhood sale) | Assessed value = purchase price = $1,500,000 | ~$16,500–$18,000/year |
Recent data show that the median tax bill in Marin County was about $11,625 in 2024 while the average home value in Marin County was $1.4M. If the average home value is $1.4M, the “basic property tax” average should be $14,000 - this gap in funding makes a difference!!
Where are my property taxes going if the schools are struggling?
Source: Marin County Property Tax
The majority of basic property taxes in Marin county DO go towards schools (both high school and elementary districts), BUT given the impact of Proposition 13, the pool of revenue is NOT adequate to fund the current cost of education.
What are the current costs of education? Glad you asked! Link to How we Compare tab
Current California funding formulas are inadequate
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