Data for Discussion | June 9, 2026
Silicon Valley School Revenues Exceed State and National Averages
By Rachel Massaro
Recently released Silicon Valley school finance data show that per-pupil funding reached record highs in 2024–25, above state and national averages. While California’s funding system partially offsets local funding disparities by directing additional resources toward higher-need districts, local wealth remains a major driver of school revenues across Silicon Valley. Instructional spending also varies significantly among districts, with higher revenues not always corresponding to more classroom-focused spending.
An Institute analysis of the recently released U.S. Census Bureau’s Annual Survey of School System Finances found that public school spending per pupil reached a historic high in the 2024-25 academic year. Nationally, public school systems reported average revenues of approximately $21,500 per student. California exceeded the national average, reporting roughly $26,300 in per-student revenues, while Silicon Valley — across all district types combined (elementary, unified, and high school) — surpassed both state and national averages, at approximately $29,000 in revenue per student.
The analysis, visualized through a series of district-level maps focused specifically on elementary and unified districts, also highlights substantial variation within the region. Some of the highest-revenue districts are located in affluent communities such as Palo Alto, Saratoga, and portions of the mid-Peninsula, where strong local property tax bases play a major role in school funding.
At the same time, elevated revenues also appear in districts serving higher-need student populations, such as the Ravenswood City School District in East Palo Alto and East Menlo Park. Ravenswood is unusual in that property values within the district have risen substantially in recent years — with the median home value of owner-occupied units more than doubling since 2010 — while a large share of the students it serves remain in poverty. As a result, the district generates substantial local property tax revenue despite serving a predominantly low-income student population.
Part of Ravenswood's high share of local funding is also related to its designation as a "basic aid" district. Under Section 75.70 of California’s Revenue and Taxation Code, districts whose local property tax revenues exceed their Local Control Funding Formula (LCFF)* entitlement receive little or no general-purpose state aid and instead rely primarily on locally generated revenues. In 2024-25, local sources accounted for 77% of Ravenswood's total revenue.
Ravenswood is one of only three elementary and unified districts in Silicon Valley with both high revenues and high student poverty rates (based on eligibility for Free or Reduced-Price Meals). Among the region’s 13 districts in the highest quartile for student poverty, only one — Gilroy Unified — also ranked in the bottom quartile for revenue. By contrast, seven elementary and unified districts located in affluent communities — Hillsborough City, Lakeside Joint (in Los Gatos), Las Lomitas (serving Menlo Park and Atherton), Los Altos, Portola Valley, Saratoga Union, and Woodside Elementary — combined high revenues with low student poverty rates.
These findings illustrate how heavily Silicon Valley school systems rely on locally generated revenue — particularly property taxes, but also other various sources — making district funding closely tied to local wealth. Given Silicon Valley’s high property values, it's not surprising that 34 (24%) of the state’s 139 basic aid districts in 2024-25 were located in the region. Across the region overall, local funding sources accounted for roughly two-thirds of revenues, with more than half coming from property taxes alone. By comparison, California’s elementary and secondary school systems statewide receive 36% from local sources, with 25% from property taxes.
Instructional spending — which includes direct classroom expenditures such as teacher salaries, instructional materials, and classroom support — also exceeds national averages across much of Silicon Valley. Nationally, instructional expenditures accounted for 59% of total school spending in the 2024 fiscal year, compared with 58% statewide. Across Silicon Valley elementary and unified districts, specifically, the share devoted to instruction varied considerably, ranging from less than 60% in some districts to nearly 70% in others.
The comparison suggests that higher revenues do not necessarily translate into proportionally higher instructional spending. Districts with very high funding levels may also face elevated transportation, facilities, administrative, and student support costs, particularly in smaller or geographically dispersed districts. Instructional shares varied considerably across districts regardless of overall revenue levels.
Note: The maps shown here focus specifically on elementary and unified districts; regional averages shift somewhat when high school districts are included.
*The Local Control Funding Formula is what California uses to calculate and distribute state funding to public K-12 school districts and charter schools.
About the Author
Rachel Massaro is vice president of Joint Venture and director of research at the Silicon Valley Institute for Regional Studies. Their work aims to bridge the gap between academia, council chambers, the boardroom, and the dinner table.
