Parents United for Public Schools

Home > Education Issues > School Funding > Layers of Complexity > General Education > Equity	Print View

Equity

Equity revenue is intended to reduce the per pupil disparity between the highest and lowest revenue districts on a regional basis, with the regions defined as the seven-county metropolitan area and the balance of the state. In each region, districts are ranked according to their basic and referendum revenue. Districts below the 95th percentile of revenue in those two components combined are eligible for equity revenue, except school districts located in cities of the first class (Duluth, Minneapolis and St. Paul), which are automatically excluded.

There are two components to the equity formula, with a third to be added for 2006-07:

The first is the regular formula based on the district's ranking in their region.
The second is a supplemental formula for districts with referendum amounts below 10% of the state average referendum amount.
The third component to be added for 2006-07, is a fixed amount for all districts, with districts above the 95th percentile of referendum revenue receiving half what those below the 95th percentile receive. Districts below the 95th percentile of revenue in referendum and basic revenue are eligible for the regular and low referendum equity revenue, except districts in cities of the first class which are automatically excluded.

Equity revenue is equalized. For districts in the seven county metropolitan area, the revenue amount resulting from both regular and supplemental low-referendum equity is multiplied by 1.25.

More information on the impact of Equity on school district revenues (and the relationship between Equity and Referendum revenues) can be found in the Minnesota Department of Education January 2005 Report to the Legislature, "Options for General Education Formula Changes to Limit Revenue Disparities." (pdf)