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State Education Reforms (SER)

Table 1.7. Financing sources for state funding systems, state provided formula funds, state reclaim of funds, and funding systems ruled unconstitutional, by state: 2004–05
 
State   Financing sources for state funding system1 State requires a minimum local effort for districts to receive state aid1   State reclaims funds from districts able to generate above a specified amount1   Current state funding system has been ruled unconstitutional for equity concerns (2003–2004)2
United States   35 3   5 3   9 3
 
Alabama   Foundation Yes   No   Yes
Alaska   Foundation Yes   No   No
Arizona   Foundation Yes 4   No   Yes 5
Arkansas   Foundation Yes 4   No   Yes
California   Foundation 6 No   No   No
 
Colorado   Foundation Yes 4   No   No
Connecticut   Foundation Yes   No   No
Delaware   Flat grant/local-effort equalization No   No   No
District of Columbia   Foundation 7   7   No
Florida   Foundation Yes   No   No
 
Georgia   Flat grant/local-effort equalization Yes   No   No
Hawaii   Full state funding 8 7   7   No
Idaho   Foundation Yes 4   No   No
Illinois   Foundation/flat grant Yes 4   No   No
Indiana   Foundation 9 Yes 4   No   No
 
Iowa   Flat grant/local-effort equalization Yes   No   No
Kansas   Flat grant/local-effort equalization Yes   Yes   No
Kentucky   Flat grant/local-effort equalization Yes   No   No
Louisiana   Flat grant/local-effort equalization No   No   No
Maine   Foundation Yes   No   No
 
Maryland   Flat grant/local-effort equalization Yes   No   No
Massachusetts   Foundation Yes   No   No
Michigan   Foundation Yes 4   No   No
Minnesota   Flat grant/local-effort equalization No   No   No
Mississippi   Foundation Yes   No   No
 
Missouri   Foundation 9 Yes   No   No
Montana   Foundation No   No   No
Nebraska   Foundation Yes 4   No   No
Nevada   Foundation Yes   No   No
New Hampshire   Foundation No   No   No
 
New Jersey   Foundation Yes   No   Yes
New Mexico   Foundation Yes   No   Yes 5
New York   General aid 10 No   No   Yes
North Carolina   Foundation No   No   Yes
North Dakota   Foundation Yes 4   No   No
 
Ohio   Foundation Yes   No   Yes
Oklahoma   Foundation No   No   No
Oregon   Foundation Yes 4   No   No
Pennsylvania   Percentage equalization 11 No   No   No
Rhode Island   General aid 12 No   No   No
 
South Carolina   Foundation Yes   No   No
South Dakota   Foundation Yes 4   No   No
Tennessee   Foundation Yes   No   No
Texas   Foundation/local effort equalization Yes   Yes   No
Utah   Foundation Yes   Yes   No
 
Vermont   Full state funding No   No   No
Virginia   Foundation Yes   No   No
Washington   Full state funding/local-effort equalization No   No   No
West Virginia   Foundation Yes   No   No
Wisconsin   Guaranteed tax base No   Yes 13   No
Wyoming   Foundation Yes   Yes   Yes 5
 
† Not applicable.
1 Education Week Research Center annual state policy survey, 2004.
2 Education Week, Quality Counts 2004.
3 United States total number of affirmative or "Yes" responses for each column.
4 A minimum local effort is not required for districts to receive state aid; instead the state assumes local districts will raise a certain amount and adjusts state aid accordingly.
5 Ruling for these states were based on funding for school construction.
6 California has several grants and entitlements in its school funding formula, the largest of which is general-purpose aid. General-purpose funding is based on a modified foundation formula, and the foundation level varies for each local education agency.
7 Hawaii and the District of Columbia both are single school districts.
8 Hawaii basis of state funding formula based on the 2003–2004 school year.
9 Indiana's school finance system is based on a foundation program, but the state uses a guaranteed-tax-base formula to determine the local share. Missouri calculates its foundation level by multiplying a guaranteed tax base by a minimum required tax rate.
10 The combination foundation/percentage equalizing formula that generated operating aid in New York state for many years has not been used as the basis for allocation of that aid since the 2000–2001 school year. For 2004–2005, every district received a 1.75 percent increase from its 2003–2004 funding level.
11 In Pennsylvania, the subsidy from the prior year has been the base for the current year; any additional funding for the current year has been distributed through various formula components called supplements. The base supplement is based on a district-wealth ratio.
12 Rhode Island uses 10 major methods to distribute education funds. The largest dollar amount, general aid, is a fixed amount based on what a district received in fiscal 1998.
13 There is recapture in Wisconsin if a school district has "negative aid" in Wisconsin's third tier of funding. Although funds are not returned to the state, those districts share local funds with districts that have property wealth lower than the state average.
SOURCE: Education Week, Quality Counts 2005, table Resources: Equity. Data Source

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