In 2017, the California Department of Education (CDE) announced the "Small School District Assistance Initiative," aimed at providing targeted assistance to small and rural school districts in the state. A prime focus of the initiative is assisting small and rural school districts with improving their facilities. To aid CDE's efforts, this study investigates the facility challenges and issues facing rural and small school districts in California. The following research questions are presented: (1) Are rural and/or small school districts at a competitive disadvantage in providing adequate and equitable facilities?; (2) What are the major obstacles rural and/or small districts face in getting state capital funds?; and (3) Given the findings, what changes in state policy and/or regulations might improve the ability of rural and/or small school districts to adequately plan and finance their facilities? A mixed method approach was utilized to understand the capital investment patterns and facility planning processes of rural and small public school districts in California. Findings are presented from analysis of school district data on facility-related characteristics and spending trends. Findings from interviews with 40 rural and small school district officials from across California are presented. They provide a rich understanding of the facility planning and investment challenges experienced by rural and small school districts across California. The findings also provide long term guidance to CDE in amending state policy and regulations, improving technical assistance, and reforming funding formulas to overcome the challenges faced by local school districts in planning and funding their facilities. [For "Small Districts, Big Challenges: Barriers to Planning and Funding School Facilities in California's Rural and Small Public School Districts. Executive Summary," see ED586249.]