In 2007-2008, before the most recent recession, California was ranked 46th in the nation in terms of per-student education funding. That year schools received the most per-student spending ever from the state.
The recession followed and school districts began to see state revenues decline year after year, while at the same time costs, such as salaries, health care, utilities and fuel, have continued to rise. During the past four years, Elk Grove Unified has made over $110 million in cuts and used one-time funding such as employee concessions and federal stimulus money in order to maintain fiscal solvency.
In March 2011, prior to the signed state budget, the Board of Education took action on $34.2 million in budget cuts. Following the signed state budget, $8 million of the $34.2 million in reductions were implemented for the 2011-2012 school year. For the 2012-2013 school year EGUSD is implementing an additional $1.9 million in cuts related to class sizes at the elementary level. In addition, EGUSD is currently in negotiations regarding $11.4 million in budget reductions related to health care and an annual lottery stipend for employees.