Which statement about AB602 funding is true?

• A. AB602 funding is independent of ADA
• B. AB602 funding is primarily through ADA
• C. AB602 funding is based on lottery revenue
• D. AB602 funding is funded by local taxes only

Answer: (B)

The main idea is that AB 602 funding is driven by how many students actually attend school, measured as average daily attendance. The base amount districts receive is tied to ADA, so funding grows with higher attendance and shrinks with lower attendance. This means the funding isn’t determined by lottery revenues or by local taxes alone; lottery funds are allocated for other uses, and while local taxes can contribute to a district’s overall revenue, the AB 602 base comes from state sources and is allocated primarily according to ADA. So, the statement that AB 602 funding is primarily through ADA best captures how this funding is distributed.