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Each state has its own system and formula on determining the amount of funds for each school and school district. The determining factor of the financial compensation depends on the state, local districts, and property values. It is not a easy or fair streamlined process.

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In Texas and some other states they use a method called the Average Daily Attendance (ADA). This means the state takes the total number of students who are in attendance each day of the entire school year and divided it by the number of the instructional school days. This formula is intended to promote equity amongst the big and smallest school districts. However, it creates the opposite effect. We can see this through data showing there is less funding (at least 5.5%) for high poverty school districts. These types of systems and formulas need to be eradicated because it does not account for all students and their needs. For example, on a given day only 92% of student have the needed textbooks. The other 8% is neglected which sets a tone that not all kids deserve the most effective education.

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States like to keep control of financial allocation and responsibility. They believe this is the best practice because states are more equipped to understand the needs of the schools, teachers, and students compared to the national level. However, even though it sounds like a good plan it is still complicated because the needs of each school, teacher, and student differ and the state is not handling these needs in the most efficient and effective manner. The processes need to be reviewed and updated.

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Federal School Funding - Individuals with Disabilities Education Act 

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Federal School Funding - Individuals with Disabilities Education Act 

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Access to more federal funding is an option if the school district and specific school agree follow the program guidelines. An example of a federally funded program is the Individuals with Disabilities Education Act (IDEA). This act is in place to govern and manage how students with disabilities are handled and treated in school. To qualify for this federally funded act the schools must provide a less restrictive environment for the students needs and hold them to the same behavior and discipline structures set by the school. This is where an IEP can come into play by providing necessary information about what the student requires to be set up for success.

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There is a high demand and need for the federal government to incentivize states to begin to fix their financing formula. If they began to adjust and fix their formula's then the education system would be on track for higher success. The federal government is allowing states to fly under the radar of base level financial support to schools. Another issue is how new propositions are requesting reallocation of resources to help balance out the scales. However, there are no resources out there to be reallocated to allow growth inside the classroom. There is a vicious cycle between unfair funding, serious resource deficiencies, and low income. This cycle is why we as a nation have difficultly progressing.

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Local property taxes plays a key roll in school funding. For example, a wealthier community collects a higher amount of property taxes which then correlates to having more money to provide the schools needs and wants. Then, in the poorer communities that opposite occurs.

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Through specific state legislation, like the legalization of marijuana, schools can gain more financial compensation. In 2014, Colorado made the retail market for marijuana legal. Since this decision rural school districts have been funded more money. This allows these areas to provide their students equal opportunities to those in wealthy and high populated school districts. This is why it is important to educate each community of new legislation proposed at the city and state level.