Basic revenue is also referred to as basic formula, or formula revenue. Minnesota allocates basic revenue based on the availability of state funds rather than the cost of providing services (More Information).

Basic Revenue & Transportation

Transportation is part of the basic formula allowance, and any funds from those revenues not spent on student transportation can be used for other educational purposes, such as paying teachers or buying textbooks. Conversely, if a district’s transportation costs exceed the transportation revenues its students generate, those costs must be met by reallocating other general fund dollars—which, again, could otherwise be used for teachers or textbooks. Sparsity & Transportation Sparsity Revenue provide additional funds for students in necessarily small and isolated schools.

Transportation is one of five Major Cost Drivers identified in a June 2005 report by the Office of the Minnesota State Auditor.