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State Aids


            Educational expenditures constitute the largest portion of most state and local government budgets. Historically, the responsibility for funding public education has been on the shoulders of state and local governments as they provide over 91% of all revenue (Brimley & Garfield, 2002). .
             School funding in the United States is achieved through the combined efforts of all three levels of government: local school districts, each of the states, and the federal government. It is principally concerned with raising, distributing, allocating, and using revenues for the purpose of educating children (Odden & Picus, 1992). The major task of policy makers has been to create school funding formulas that will promote fiscal equalization, incorporate intergovernmental grants, and uphold school finance values. The main sources of funds for our schools are local property taxes and state revenues. Put in the simplest of terms, the ability of a local government to pay for the education of its children depends mostly on property values and the number of pupils in the district (Brimley & Garfield, 2002). Although each state relies on the same basic principles and types of funding, each states funding system is individual. Some of these differences are based on the states history of funding public schools. Other differences occur as a result of litigation or changing demographics within the state. Other differences occur as political power shifts within the executive and legislative branches of the states. The result is that some states have relatively simple financing structures while others have highly complex structures.
             One type of financing structure is the "flat grant" which distributes an equal sum of dollars to each public school pupil in the state, regardless of the property or income wealth of the local school districts. Historically, the flat grant program has allowed for localities to create a school where none existed, and also funded an "in kind" contribution to those districts which had already been able to create schools.


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