After years of painful budget cuts, new revenues will begin to flow to California school districts in 2014. Thanks to the voters' approval of Proposition 30 and the adoption of the Local Control Funding Formula (LCFF), nearly all districts can expect budget increases over the next several years. In this report PACE offers guidance on research-based strategies for LCFF implementation. They begin with three key principles that must guide any long-term strategy for improvement in California's education system. PACE then identifies four key areas for the investment of new resources where research suggests that additional spending can produce real gains in the performance of schools and students.