Abstract
Statement of Problem Lawmakers and stakeholders constantly argue and debate over what system of school finance closes the achievement gap and provides an adequate amount of resources to schools. In 2013, California implemented the Local Control Funding Formula. In 2019, the California State Auditor conducted an audit of the funding mechanism and noted various issues. Sources of Data California Department of Education Conclusions Reached Using regression discontinuity design and data on test scores, I find that targeted funding has a positive impact on student achievement. When analyzing at the school district level, the effects are only significant for students attending grades five and seven in both math and English. When testing at the school level by subgroup, we find that there are also positive impacts on student achievement. However, we see no improvement in test scores for English learners and pupils that are economically disadvantaged.