Funding Issues
February 22, 2006
The new formula for school funding this year will be phased in over a 7-year period. Each year a progressively lower amount is added from the old formula to the new formula. The new formula amount grows as the old formula is phased out. The new formula is also based on what is called weighted ADA. The weighted ADA takes into account special education students, LEP students, and free and reduced students. The weighted ADA times the amount of $6117 per student, called the State Adequacy target would equal the district total. You would then subtract the amount of local effort and have the amount of state funding received. This year we will use 15% of the new formula and 85% funding from the old formula.
Another positive about the new formula is that all gaming monies will be placed in the budget at the discretion of the board. There are no restrictions in which funds they may be placed. This allows the district to place enough in capital or operating to suit the needs of the district. It allows us more flexibility.
The next few years should be very interesting in new formula phase in. We shall see how it affects us in the long run.
