| 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. |