In passing the Local Control Funding Formula in 2013, the Legislature shifted decision-making back to local districts and steered more money to districts with higher proportions of low-income children, English learners and foster and homeless children. Proposition 98, adopted in 1988, sets the overall yearly level of K-12 and community college spending through a complex formula tied to the growth in the state economy. The changes in funding were tied to major changes in how districts assess students and are held accountable for their success. Districts must outline how they will spend their funds in a Local Control and Accountability Plan. Whether these reforms succeed in improving student outcomes significantly and narrow historically large achievement gaps is now the core issue and challenge in education reform in California.