EDLD 5342 School Finance Week 1

Week 1 School Finance EDLD 5342

Part 2 – State Formula Insights and reflections

The first issue that affects the state funding formula is the discrepancy that exists in local district ad valorem (property) taxes. Since local tax bases vary greatly across the state, an effort to equalize allocations to all districts resulted in a plans to infuse state money into calculations. This has led to controversies such as Chapter 41 and 42 school districts, the Robin Hood Act and the current state funding formula. Secondly, , Weighted Average Daily Attendance (WADA), the number of students qualifying for special programs, effects school funding. The numbers of students identified as in need of special education services, participating in career and technology education, and identified as gifted and talented, result in districts receiving funds. Inequities result when these funding formula elements determine how much money is allocated per student. This impacts the guaranteed yield funding. Another funding source that impacts school funding in local districts is the compensatory education allotment. This provides financial support to school districts with populations of economically disadvantaged students and is based on the numbers of students participating in the free/reduced lunch program. It provides support to compensate for academic deficiencies beyond the regular education program.