School Finance 101


How are schools funded?

  • Our primary source of funding comes from the State of Minnesota. The legislature decides the state's K-12 basic funding levels, as well as directing what services schools must provide. In determining how much funding we receive, the legislature uses a complex formula that considers the number of students, special needs within our district, property wealth and several other factors. For our school district, the state currently funds 76 percent of our budget.

    Elementary and secondary education in Minnesota is financed through a combination of state-collected taxes (primarily income and sales taxes) and locally collected property taxes.

Revenue for school districts is received in these major categories:

  • General Education Aid

  • Categorical Aids

  • State Paid Property Tax Credits

  • Property Tax Levies

School Funding Related Terms & Definitions

  • Average Daily Membership (ADM)

  • Operating Capital Allocations

  • Full Time Equivalent (FTE)

  • Cross Subsidy

  • Multilingual Learner (ML)

  • Assigned Fund Balance