California schools will get more than $3.6 billion dollars for their base grant, that's an extra $536 per student.
This allows extra money to be provided to school districts and allows them with more spending flexibility, in Governor Jerry Brown's budget.
"For years Sacramento has sent money down to schools districts but said you can only spend this money on certain types of programs," said H.D. Palmer with the Department of Finances. "So what Governor Brown is proposing to do is to continue what is called categorical flexibility which allows these districts to move that money from one area to another so that they can target what their highest local priority is."
Gov. Brown says he wants to change the way state aid is handed out and to fix what he says have been decades of inequality among school districts.
Under the plan school district will also get extra funding for all low income and foster children.
California lawmakers will vote Friday on the budget deal that will restore cuts that were made in schools over the past few years. Officials say it would take about 8 years to fully implement the funding formula.