Federal officials rejected California's application for a share of $4.35 billion in Race to the Top funding, part of President Barack Obama's effort to overhaul public schools.

The news came in a letter to governors, in which U.S. Education Secretary Arne Duncan said that "only the very best proposals" would get money. Fifteen states and the District of Columbia were announced as finalists.

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By Rob Hotakainen
The Sacramento Bee