School System Finances

HOW IS EDUCATION FUNDED?

Schools are funded with a combination of federal, state, and local dollars.

FEDERAL

The majority of federal funding is provided through grants, including grants administered by the state and grants that are awarded directly to school districts. Federal grant funds provided through the Department fall into three categories – entitlement, competitive, and other. All federal funds must be expended according to the regulations associated with each grant. Federal funding comprises roughly thirteen percent of school funding annually.

  • Entitlement: Federal funds automatically provided to school systems and schools whose data qualifies them for participation. The allocation formula is set by the federal regulations.
  • Competitive: Funds for which an application must be completed and submitted by school districts and schools and then qualified by the Louisiana Department of Education in order to receive the funds.
  • Other: Funds awarded to school districts and schools through an alternative methodology.

STATE

The overwhelming majority of state funding is allocated to school districts based on a formula which is designed to ensure all school districts and schools have a minimum amount of funding for schools. The formula is established under the Minimum Foundation Program (MFP) which is adopted by the Board of Elementary and Secondary Education and approved by the Legislature. The MFP and other state funds are appropriated annually by the Legislature. The State contributes approximately forty-four percent of funding for schools each year.

LOCAL

Local sales and property taxes levied by the city and parish school systems fund a portion of the funding available to fund schools. The annual contribution of local funding for schools equals roughly fortythree percent of the funding for schools each year.


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