Public School Finance Act of 1994
School Finance Act in 2015-16
Source: Legislative Council Staff
The total amount of funding received by a district under the School Finance Act – state aid and local property tax – is frequently referred to as “total program.” The state and local sharing under the Finance Act is intended to offset vast disparities in local school districts’ ability to raise money from local property tax.
It is not feasible in this workbook to detail the provisions of the Finance Act. Central concepts from the law include:
- The formula by which “factor funding” is calculated.
- A procedure to count pupils on Oct. 1 each school district budget year.
- Rules to govern funding special programs such as online education and concurrent enrollment of district students in college courses.
- An allowance for school districts with declining enrollment to average the last five years of enrollment to permit districts to plan and implement any cuts in staff and facilities.
- Authority for school districts to collect revenues in addition to the amounts specified in the School Finance Act, if local voters approve. Voter approval is subject to limitations on when the elections may be held, the language that must appear on the ballot and specified caps on the additional amounts that may be raised.