How K-12 education is funded

In Politics by Michael Rae

Funding for K-12 public education is a shared responsibility between federal, state, and local governments. Figure 1 provides a snapshot of these revenue sources in the 2019– 2020 school year.

State policymakers have little say over how federal education dollars are allocated and used, so this policy brief focuses exclusively on state and local funding.

While school finance systems vary considerably across states, school districts generally rely on four distinct revenue streams that can be broadly categorized as follows:

State Funding Formula Aid is a state’s primary method of delivering education dollars to school districts. A combination of state and local