| The 1971 General Education Formula Allowance established a base per pupil allowance by taking the funds available and dividing it among the number of students in the state. There was no attempt to correlate the dollars with the costs of providing a quality education.
This amount, multiplied (roughly) by the number of students in a school district, is the minimum level of funding for each school district. It is also generally the majority of each district’s revenue. Note: This is not necessarily the minimum level per school, but per district. The district allocates the dollars to the schools based on the priorities of the locally elected school board.
Some years when the allowance has shown a large increase from the previous year, the increase has been due largely to money from other funds being “rolled into” the base formula amount. For example, at one time there was a separate fund for transportation costs, but that has since been rolled into the General Education Formula Allowance.
Over the past 30 years, Minnesota has modified this formula to address various initiatives and inequities resulting in complex layers above and beyond the basic formula allowance.
The Minnesota Department of Education provides additional information on the Allocation of General Education Revenue.
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