This report collects other tax payments for property types subject to school taxes paid in lieu of property taxes. This information is used to calculate state aid formula payments to school districts.
The local contribution requirement in the formula is set at 60 mills and a percentage (75%) of other local property tax sources. The report is necessary to accurately identify the other local in-lieu of property tax payments made to school districts in your county from July 1, 2020, to the June 30, 2021 school year.
The foundation aid payment system distributes payments monthly based on a statutorily defined payment schedule.
State Formula Aid and Transportation
- The August 1 and September 1 payments are based on 10% of the estimated entitlement.
- The October payment is based on 20% of the estimated entitlement.
- The November 1 payment adjusts payments to 60% of the actual entitlement for the school year.
- December 1 (68%), January 1 (76%), February 1 (84%), March 1 (92%), and
- April 1 (100%) payments are approximately 1/5 of the remaining entitlement.
- The funding generated from the REA factor is deducted from the district and paid directly to the REA on the same payment schedule as State Formula Aid and Transportation. The amount is shown as an adjustment to State Aid.
- Upon request, Special Education funding generated in the funding formula is paid directly to the Special Education Unit on behalf of member school districts. The amount is shown as an adjustment to State Aid.
- REA coordinator grants are distributed to regional education associations in the month supporting documentation is processed.
- Student contract reimbursements are paid in the month they are processed.
- Gifted and talented funding is distributed in February.
Foundation Aid Payments
- Engrossed House Bill No.1013
- Reengrossed House Bill No 1388
- State Aid Formula - District Level Status 2022-23
- State Aid Formula - District Level Status - 8-Year Comparison
- K-12 Funding Formula Description
Worksheet for Estimating School District Revenue-HB 1013 Section 12
“During the 2021-23 biennium, the board of each school district shall use an amount equal to at least seventy percent of all new money received by the district, resulting from increases in the base integrated formula payment rate, to increase the compensation paid to non-administrative personnel.”
The additional funding resulting from the increase in the base integrated formula payment rate can be calculated using the 2022-2023 State Aid Schools Worksheet. The increase is calculated in cell I58 highlighted in yellow.
Please contact 701-328-3291 with any questions.