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Implementation of State Required Personal Finance Course and Authorization to Exempt Pupils from Economics Requirement for the Class of 2031 and Beyond
Division of Instruction
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Brief Description:
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(Implementation of State Required Personal Finance Course and Authorization to Exempt Pupils from Economics Requirement for the Class of 2031 and Beyond) Recommends to authorize the exemption of students from taking the state-required one-semester Economics course if they complete a separate stand-alone one-semester course in personal finance that is not combined with any other course, consistent with Education Code §51225.3.
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Recommendation
Action Proposed:
Authorize an exemption from the state-required one-semester Economics graduation requirement for students who complete a separate, stand-alone one-semester Personal Finance course, beginning with the Class of 2031, consistent with Education Code § 51225.3, to align District graduation requirements with AB 2927 and provide greater scheduling flexibility to pursue college and career pathways.
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Body
Background:
Assembly Bill 2927 establishes a statewide personal finance graduation requirement beginning with students in the graduating Class of 2031. The bill requires that all high schools offer a separate, stand-alone, one-semester personal finance course aligned to state requirements beginning in the 2027-2028 school year.
To accommodate the additional graduation requirement, Education Code §51225.3 authorizes local educational agencies (LEAs) to exempt students who complete the required personal finance course from the state-required one-semester economics course. The economics requirement will remain in effect for students who are not exempted by the LEA.
Expected Outcomes:
The Board will authorize the exemption of students who have successfully completed a stand-alone one-semester Personal Finance course from the state-required one-semester Economics course beginning with the Class of 2031. Students in the Class of 2031 who complete Personal Finance will not need to complete Economics to graduate.
Board Options and Consequences:
If authorized, the exemption from the state-required one-semester Economics course, consistent with Education Code §51225.3, will provide schools and students with greater flexibility in planning their course of study and will accommodate the new Personal Finance graduation requirement established by AB 2927. Economics will remain available as a course for schools to offer as an elective.
If not authorized, beginning with the Class of 2031, students would be required to complete both Economics and the new one-semester Personal Finance course as graduation requirements. Requiring both courses would reduce flexibility in students’ schedules and may limit opportunities to pursue Career Technical Education (CTE), Advanced Placement (AP), International Baccalaureate (IB), Dual Enrollment (DE), and other coursework aligned to their college and career aspirations. This will make it more challenging for students to complete graduation requirements while also accessing college-level coursework, industry-aligned programs, and early college opportunities within the limited number of courses available during high school.
Policy Implications:
The decision to authorize the exemption beginning with the Class of 2031 will not change the District’s course offerings. Instead, the decision to authorize will provide greater flexibility within students’ course schedules to pursue coursework aligned with their individual college and career goals, including CTE, AP, IB, DE, Honors, and other advanced coursework.
Budget Impact:
If the exemption is approved, a MiSiS enhancement will be required. The estimated cost is between $0 - $40,000.
Student Impact:
Authorizing the Economics exemption will provide greater flexibility within students’ course schedules to pursue coursework aligned with their individual college and career goals, including CTE, AP, IB, DE, Honors, and other advanced coursework.
Equity Impact:
Not Applicable.
Issues and Analysis:
While Economics overlaps with Personal Finance, students who do not take Economics may have less exposure to broader economic concepts, such as supply and demand, inflation, and economic growth, as well as how government policies and economic systems affect society.
However, requiring both courses as graduation requirements will reduce flexibility in students’ course schedules to pursue additional advanced coursework aligned with their individual interests and college and career aspirations. The additional semester-long requirement may also affect graduation rates and increase master scheduling complexity.
Attachments:
You may view attachments at the following links:
Attachment A - AB 2927
<https://drive.google.com/file/d/1CTJSyFVCjCztAwM9KAYi8iw5HyFgjogK/view?usp=sharing>
Attachment B - Education Code §51225.3
<https://drive.google.com/file/d/1rvp4CNAjrWMDKP98DYCu9zAZ12ZpAeSK/view?usp=sharing>
Attachment C - LAUSD Graduation Requirements
<https://schoolcounseling.lausd.org/apps/pages/index.jsp?uREC_ID=4402648&type=d&pREC_ID=2627735>
Submitted:
10/21/26