Revenue Limit System

The Revenue Limit System is a financial framework used primarily in California schools to control how much money districts can generate from property taxes and other local revenues. Established in the 1970s, it sets a maximum revenue level based on factors like student enrollment and provides a foundation for funding calculations. Essentially, this system ensures that school funding remains relatively stable and equitable across different districts, preventing large disparities in financial resources based solely on local wealth. It aims to balance educational funding while limiting excessive reliance on local property taxes.