What a loaded statement with so much uncertainty, inconsistency and unrest. It is both confusing and frustrating and rewarding only if you do not loose or happen to gain. The Nebraska Department of Education, School Finance and Organization disclosed the state aid to schools on Friday, January 25. It is sort of like playing the lottery.
It is a complicated formula with approximately 40 components with varying formulas for figuring what you will eventually get. The calculations are based on primarily system formula needs combined with system Formula resources available. From there it goes through the system state aid calculations and finally the system state aid paid. Under the system formula needs, the primary data to start with is your weighted formula students, not just your students, but your weighted formula students. Limited English Proficiency factor and free lunch/poverty factor include those students that are of limited English speaking abilities and are also through application at the beginning of each school year, either on free and/or reduced lunch status. Other factors involved in the system needs side are Indian ADA factor, extreme remoteness factor and summer school factor. Distance Ed and telecommunications allowance are also new this year. Another big factor for the gain of state aid for some schools was the elementary class size allowance. Schools having classes in grades K-8 with a class size between 10 – 20 students per class were also rewarded financially.
On the resources side of the calculation, several items are used to figure resources, both local and other. Some of the major items included are adjusted assessed valuation (the difference between the county courthouse assessed values and the state of Nebraska assessed values), meeting the local effort rate of 0.95 on the levy, yield from local effort (property taxes), net option funding (the difference between transfer in to transfer out students within the district) and other actual receipts, state and federal funds through grants and other yearly allocations. When the smoke clears after calculations, schools are either equalized (those that will received state aid) or non-equalized, those that will not receive state aid due to the fact that their needs are covered by their resources without state aid. State aid is basically the difference between needs verses resources to meet those needs.
The formula is complicated, as I said earlier; it is a series of formulas, not just one. At one time, it was determined by the legislature that only about 5 to 6 people understood the state aid formula. There are major changes proposed in the state aid formula. Approximately 5 new pieces of legislation have been introduced for legislative action this session. From year to year, the state aid that schools have received from year to year resembles a pendulum. The swing from loss to gain or vise versa has been significant. How a school can loose so much one year and gain that or more back the next year is hard to explain.
What it means to superintendents is that it is hard to build a budget and be proactive as far as building for long-range projects with such extremes. Both Bloomfield and Wausa gained in state aid this year, Wausa significantly. I have experienced the state aid roller coaster for several years and as far as consistency, I have seen none. Yet through it all, we manage to survive. We have the numbers and we will continue to do so. Working together as educators, parents and a community, we will find a way. The bottom line is how bad do we want to? I feel that in our small communities, the desire and determination are there.
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