I’m not aware of this funding logic but how does this even work? Like in COVID, all students were remote, but finding never stopped. And last I checked, if my kid doesn’t go to school for a week, school funding doesn’t get impacted. I mean coming in on alternate days doesn’t mean you’re not learning, you can still do online classes on that day.
California school funding formulae are a big complicated mess, but student attendance does play a role in budgets during regular times. Every day of school your kid misses costs the district about $50. Some districts even nag parents for donations after absences[1]
However for the 2020-2021 and 2021-2022 school years, they set a baseline so that schools received funding based off of their 2019-2020 (preCOVID, normalized) average daily attendance. This was good for big schools that had lower enrollment but caused issues for suburban/rural districts that saw a lot of growth.
In most states funding is related to attendance somehow, I think the details vary. At one time I think there was a thought that districts would take truancy and absences more seriously instead of ignore it if there was an impact to the bottom line.
There are also a multitude of programs throughout k-12, particularly in high school, where the student spends part of their day outside of the district. I think this just helps ensure that the state isn't paying twice for the same student when the external program is also state funded. (It also helps to remove any weird financial incentives to get the kids out of the building)
In my area I think this is where the vast majority of the district income variance comes from, and it is known about and largely planned for before the year even starts.