 In 1978 , the AVJUHSD challenged the constitutionality of California Proposition 13 , which placed a cap on county real estate taxes . The proposition limited property tax assessments to the 1975 standard , eliminating $ 7 billion of the $ 11 @.@ 4 billion in property tax revenue collected each year . According to the Washington Post , the " severe " limitations this imposed on state funding forced local governments and most school districts in California to make " drastic cutbacks " . Furthermore , an article in the Los Angeles Times noted that Federal aid money for Californian schools , worth about $ 98 million each year , may be reduced if state @-@ funded programs are cut . A recent Congressional report had found that Proposition 13 would not result in any major " local spending " cuts . In order to receive Federal aid , the state needed to maintain present levels of spending on local programs or secure local matching funds . However , the enforcement of this spending was " flexible in many programs " and the Federal Impact Aid program for schools was therefore in jeopardy . 
