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District Power Equalizing

District power equalizing is a state aid to education distribution system that ensures that the same amount of money is available for the same local tax rate regardless of the relative wealth (or lack thereof) of the local tax base. It differs from a guaranteed yield system only in that it recaptures the excess revenue generated when a district meets the state-set funding level at the state-established tax rate.

This entry explains the equity principles in operation, the frequency of use and stability of this type of funding formula, the most common variations, and the advantages and disadvantages of the mechanism.

Principles

The amount and proportion of state aid to a local district is generally based on the amount of property wealth behind each student. Some districts will ...

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