After more than a decade of dedicated investment, state funding to assist local California school districts in the construction, modernization, and maintenance of their school facilities has come to a halt. As the Governor, the legislature, and other stakeholders debate the future of the state's K-12 school facility funding role, a big unknown exists: "Can all California school districts adequately and equitably maintain and modernize their school facilities without dedicated state funding?" The answer to this question should guide policy decisions about the state's school facility funding role. Analysis of facilities spending trends by California school districts shows that, compared to industry standards, there is an ongoing, structural pattern of inadequate and inequitable facility spending in many California public K-12 schools. This trend signals costly long-term consequences, as accumulated facility needs risk becoming a health and safety crisis. Findings in this study include: (1) The majority of school districts underspend on facilities; (2) Wealthy districts spend more on facilities, especially on the capital side; and (3) Districts serving low-income students disproportionately spend more per student on Maintenance and Operations (M&O) from their operating budgets to fund facilities. To reverse the pattern of inadequate and inequitable investment in K-12 public school facilities, four strategic policy reforms should be cornerstones to the approach: (1) Establish stable, dedicated state funds for K-12 school facilities; (2) Distribute K-12 school facility funds equitably, adjusting for local wealth; (3) Improve standards for school facility planning and budgeting; and (4) Establish a California School Facility Database to guide spending. Contains an appendix: Data, Methods and Analytic Approach. [For "Going It Alone: Can California's K-12 School Districts Adequately and Equitably Fund School Facilities? Policy Research Brief," see ED573786.]