As an aid for California school board members, school administrators, and citizens, this handbook provides data on California public schools and an explanation of California school finances. Chapter 1 contains facts about the state's schools and school districts, including size, demography, student population distribution by county, attendance trends, and school spending. In chapter 2, California is compared with other states in terms of per capita income and school expenditures, state and local school spending, teachers, teacher salaries, and student performance on national tests. Chapter 3 describes recent changes in California educational finance, covering the Serrano cases on educational equity, Proposition 13 involving tax limitations, legislative actions on these issues, state and federal categorical aid, and the impacts on school finance levels. Chapter 4 is a basic primer on California school finance, discussing revenue limits and state and federal aid. Changes in state revenue sources are examined in chapter 5. In chapter 6, three private economists comment on California's economic outlook, federal policies, and the implications for school finance. Appendices include a glossary of 63 California school finance terms and an overview of the factors affecting schools, including demographic changes and television. An index is attached. (Author/RW)