Equalization is a form of subsidizing the General Education Formula. It’s the state's way of calculating its portion of the formula and an attempt to even out the property tax burdens in a region by using a fixed equalizing factor to guarantee that a certain tax rate will generate a certain amount of revenue for a school district regardless of a district's property value.

The "Equalizing Factor" is the dollar amount used to calculate the state and local shares in formulas that are equalized. Most equalizing factors are fixed. A fixed equalizing factor is a guarantee by the State that a certain tax rate will generate a certain amount of revenue for a school district, regardless of the district’s property value.

The Operating Capital,  Equity, Alternative Compensation Revenue (Q-Comp), Transition, and Referendum portions of the General Education Program are equalized.