Over the past decade, California’s education budget has nearly doubled, rising from $68.4 billion in 2015-16 to $133.8 billion in 2024-25—a staggering increase of $65.4 billion. Yet, despite this massive influx of funding, school districts like Santa Ana Unified are laying off hundreds of teachers, including celebrated educators like Noelle Campbell, a Teacher of the Year finalist.

This raises a fundamental question: How can schools get billions more yet still be unable to keep teachers employed?

Santa Ana Unified cites a $187 million budget deficit driven by the end of COVID-19 relief funds and a 32% drop in enrollment over the last decade. But does that fully explain the financial crisis?

Here are some key factors that deserve deeper scrutiny:

• Administrative Costs vs. Classroom Spending – Has the increase in funding been directed toward teacher salaries and classroom resources, or has it been absorbed by administrative growth, pension liabilities, or other expenses?

• Declining Enrollment, But Rising Costs – While Santa Ana has seen a 32% drop in students, the state’s education budget has skyrocketed. Are schools adjusting spending appropriately to reflect enrollment trends?

• The Impact of COVID-19 Funding Expiration – Many districts temporarily relied on pandemic relief funds to cover costs. Were they prepared for when these funds ran out, or did they expand programs they couldn’t sustain long-term?

• State vs. Local Budgeting – California allocates money at the state level, but local districts determine how it’s spent. Is the funding formula working, or is money failing to reach the classrooms where it’s needed most?

Layoffs like those at Santa Ana Unified show that something is fundamentally wrong. If funding has increased by $65.4 billion, but teachers are still being let go, the problem isn’t a lack of money—it’s how that money is being spent.

Shouldn’t the priority of an education budget be keeping qualified teachers in classrooms? If not, where is all that extra money going?