San Francisco—A state court declined to temporarily halt distribution of K-12 school modernization funds, late yesterday, while a landmark constitutional challenge to California’s discriminatory school facilities funding system proceeds. 

“The court was reluctant to put a pause on construction updates to buildings across the state, but we’re looking forward to trial, hopefully as soon as early next year. The state hasn’t been able to refute 25 years of data showing low-wealth districts are short-changed by its capital finance system or 50 years of legal precedent saying it’s unconstitutional to base educational opportunity on local wealth. The court acknowledged that we’ve raised “serious questions” that will be put to the test at trial,” said John Affeldt, Managing Attorney at Public Advocates. 

The ruling allows California to continue distributing Prop 2 modernization funds—approximately $3 billion—under the existing formula while the lawsuit proceeds. That formula requires districts to raise 40% of modernization costs locally before accessing a 60% state match, systematically directing the majority of state resources to wealthy communities that can pass more and larger bonds, while low-wealth districts fall further behind.

Plaintiffs had argued that a freeze was critical precisely because of the risk today’s ruling creates: as the case moves toward trial, hundreds of millions of dollars will continue flowing under an unconstitutional system.

“School facilities are about more than buildings. They are about opportunity, safety, belonging, and the message we send to children about their worth,” said Gudiel Crosthwaite, Superintendent of Sunnyvale School District. “California students deserve learning environments that match the promise we ask them to pursue.” 

The underlying constitutional challenge—filed in October 2025 on behalf of students, families, and educators from Del Norte, Lynwood, Coachella Valley, Fall River, Parlier, Stockton, and San Bernardino City school districts—will proceed to trial as soon as March 2027 if Plaintiffs’ requested trial date is granted. The case mirrors Public Advocates’ landmark Serrano v. Priest decision, which took years to reach the California Supreme Court before transforming how the state funds public education. 

The students in plaintiffs districts continue learning in conditions that include toxic mold, lead paint, failing HVAC systems, and classrooms reaching 85 degrees. In Lynwood, 60 classrooms leaked during last year’s rainy season. In Parlier, located in California’s eighth-poorest city, the district identified $90 million in facility needs but could secure only $14 million. 

As the case proceeds toward trial, plaintiffs continue to call on the state to reach a settlement that fixes the formula rather than force low-wealth students to wait years longer for relief. Governor Newsom has said: “You can’t look in the eyes of these kids and make an argument that the facilities that so many of them are being educated in are appropriate.” The time to honor those words is now—not in years.

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About Public Advocates Inc.
Public Advocates Inc. is a nonprofit law firm and advocacy organization that challenges the systemic causes of poverty and racial discrimination by strengthening community voices in public policy and achieving tangible legal victories advancing education, housing, transportation equity, and climate justice.

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