Freeze would begin after next allocation, forcing state leaders to address system that punishes poor districts now or wait years

SAN FRANCISCO – In a bold move to force immediate action on California’s discriminatory school facilities funding system, civil rights law firm, Public Advocates, and pro bono counsel Morrison Foerster, asked a state court for a preliminary injunction today that would ensure Proposition 2’s K-12 school modernization funds remain available for smaller and low-wealth districts until equity issues are resolved by the court or through a settlement.

“Students in California’s low-wealth communities can’t stand by any longer while their opportunity to escape dangerous and decaying school conditions is gobbled up by much wealthier districts with less dire needs,” said John Affeldt, Managing Attorney at Public Advocates. “Every dollar distributed under this broken system deepens the inequity. Study after study has concluded the system discriminates unfairly against property poor districts; we think a judge will conclude the same.”

The motion follows the landmark constitutional challenge filed in October 2025, which alleged California’s School Facility Program violates students’ fundamental right to equal educational opportunities. The system requires districts to raise 40% of modernization costs locally before accessing a 60% state match. The heavy reliance on local bonds unfairly disadvantages poor districts who have a harder time passing bonds and, when they do, cannot raise as much. That unfairness is compounded by the uniform state match. Because wealthier districts can easily pass more bonds and larger bonds, they capture a disproportionate share of state funds—creating a system where those with more get more.

The case mirrors California’s landmark Serrano v. Priest decision—also brought by Public Advocates 50 years ago. That case struck down overreliance on local property taxes as unconstitutional wealth-based discrimination in school operations funding.

“Plaintiffs put the state on notice that they needed to fix this unconstitutional formula,” said Alicia Virani, Senior Staff Attorney at Public Advocates. “But those demands were essentially ignored by the legislature, necessitating this motion to preserve funds.” 

Plaintiff students, families, and educators from Del Norte, Lynwood, Coachella Valley, Fall River, Parlier, Stockton and San Bernardino City school districts have described conditions including toxic mold, lead paint, failing HVAC systems, leaking roofs, and classrooms reaching 85 degrees. 

Governor Newsom has acknowledged the crisis. In 2019, he told CalMatters: “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. You go into some of these parking lots, these sheds without air conditioning and lead, they’ve got asbestos in those facilities—that’s not who we are. We’re capable of so much more.”

Yet seven years later, the funding system continues to direct the vast majority of resources to wealthy districts while students in low-wealth communities across the state still learn in the exact conditions.

“The facilities crisis in low-wealth districts isn’t getting better, it’s getting worse,” said Matt Stephens, a partner and pro bono counsel at Morrison Foerster. “Every day that passes with this system in place, the gap widens. Students in Lynwood are learning in 100-year-old buildings with 60 leaking classrooms. Parlier identified $90 million in needs but could only secure $14 million locally. These communities can’t afford to wait years for this case to conclude while the Prop 2 funds are depleted.”

Proposition 2, passed by voters in November 2024, authorized $4 billion in state bonds for K-12 school modernization out of a total $10 billion authorization.

“So many of our schools in Del Norte are dangerous and falling apart and we need state funds to help us fix them. But the current School Facilities Program discriminates against our low-income community because we can’t raise enough funds to get a match,” said Terry Supahan, Executive Director of True North Organizing Network. “Our students in rural schools deserve a chance to learn in a safe and modern environment. We must freeze this money until we can figure out how to distribute the money fairly.”

The preliminary injunction asks the court to halt distribution of over $3 billion in funds that will remain after a pending second round of modernization projects are funded. The court is expected to schedule a hearing in the coming weeks.

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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.

About Morrison & Foerster LLP
Morrison Foerster (MoFo) is a leading global law firm with clients ranging from startups to Fortune 100 leaders across countless industries. Our lawyers passionately care about delivering legal excellence while living our values. We believe that an inclusive workplace is crucial to leveraging the talents of all people who work here and enhancing our ability to provide top-class legal services for our clients.