Component Name Description
1. Basic education revenue Provides a base amount of revenue per adjusted pupil unit to each school district. In FY22 it provided $6,728 (the basic education revenue formula allowance) per adjusted pupil unit (APU).
2a. Basic skills—compensatory The basic skills component is split into two parts. The compensatory part provides additional funding to districts based on the number of students who are eligible for free or reduced-price meal programs.
2b. Basic skills—English learners The English learner part of basic skills provides additional funds to districts depending on the number of students eligible for English learner services.
3. Extended time Provides additional funding to districts with students who participate in extended programming such as summer school.
4. Gifted and talented $13 per pupil unit to be spent on gifted and talented programming.
5. Small schools revenue Additional revenue is provided to districts that serve less than 960 pupil units, supporting the higher costs associated with teaching fewer students.
6. Declining enrollment Provides additional support to districts with declining enrollment.
7. Local optional aid An equalization component that helps fill the gap between high property-value and low property-value districts in revenue that can be raised locally. This revenue is approved by the school board.
8. Sparsity revenue Provides additional revenue to address the high costs associated with serving a large geographic area with few students.
9. Operating capital aid Provides revenue for equipment and facility needs. The amount of revenue is dependent on the age of facilities.
10. Transportation sparsity Provides additional support to districts for costs associated with busing students long distances.
11. Equity revenue This component contains multiple parts. One part provides every school district a $50-per-pupil increase in funding (supplemental equity revenue) while other parts work to equalize revenue with property tax referendum funding.
12. Transition revenue A hold-harmless mechanism that protect districts from changes made to the general education formula in 2003.
13. Pension adjustment revenue Additional revenue to compensate districts for changes made to the employer contribution rates to the public employee retirement systems.
14. Options adjustment Adjusted depending on alternative enrollments such as open enrollment or alternative schooling.