Legislature House of Representatives House Research Taxes Major State Aids & Taxes
Major State Aids & Taxes: Education Aid
Education aid is the
total amount of state aid paid to school districts for all K-12 educational
purposes. This amount includes state aid for general education, special
education, transportation, community education, capital expenditure, secondary
vocational, and other miscellaneous programs. About 84 percent of the total aid
(including aid to charter schools) is general education aid.
Aid Amount and Reporting
2013/2014 Education Aid: $7.9 billion
The total education aid for the 2013/2014 school year is $7,901,200,460. This total includes $467,608,519 that went to the 150 charter schools operating in the 2013/2014 school year. The
amounts received by school districts for property tax credits (i.e., agricultural market value credit, taconite homestead
credit, disparity reduction credit, etc.) are not included in this amount since
they are itemized elsewhere in the report.
Education aid is paid to school districts, many of which operate in more than one county. Education aid paid to school districts that operate in more than
one county is apportioned to the various counties based on each county's share of total residential market value in the school district.
For example, if one-fifth of the residential market value of a school district is in County A, two-fifths in County B, and the remaining
two-fifths in County C, then one-fifth of the school district's education aid is apportioned to County A, two-fifths to County B, and
two-fifths to County C. Aid to charter schools is reported in the county in which each school is located. A separate page lists
education aid by school district for 2013/2014 and lists the counties in which each school district operates.
The 2013/2014 education aid total does not include amounts paid to entities other than school districts:
- $88.6 million to intermediate school districts1
- $51.6 million to cooperative school organizations
- $29.1 million to colleges and universities participating in the postsecondary enrollment options (PSEO) program
- $20.1 million to Head Start programs
- $8.1 million to nonprofits operating adult basic education
- $2.4 million to the Faribault Academies for the Deaf and Blind
- $1.6 million to four tribal contract schools
- $33,000 million to South Dakota school districts, net of reciprocity payments
1An intermediate school district is an educational cooperative authorized by statute and voluntarily created by participating school
districts. Intermediate school districts offer special education services, vocational services, alternative learning programs, and administrative services for member
Education aid by home county by school district was obtained from the Minnesota Department of Education.
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Recent Law Changes
The state aid share of school
district revenue that is promised to the school district through Minnesota's
school finance formulas is called the "aid entitlement." This data shows the school
state aid entitlement amounts for each district. The amount actually paid to
school districts by the state during each fiscal year is called the
"appropriation." Since school districts use the accrual method of accounting,
the full amount of the aid entitlement owed to the district for a fiscal year is
booked by the school district as revenue for that year, regardless of when the
state aid is actually received. The state, on the other hand, uses a cash-based
system of accounting. As a result, the "cost" to the state of school aid is only
the actual appropriation for a particular school year, not the aid entitlement.
Payment shifts have been used
to address state budget shortfalls since the early 1980s. For fiscal
years 2010 to 2012, the school aid payment shifts were reinstated and portions of school
aid payments were delayed until the following fiscal year. The amounts of school aid
shown in this data are the state aid entitlements (the amount of state aid
received by the school district for the relevant fiscal year). The property tax
recognition shift and the aid payment shift have no effect on the amounts shown
In fiscal year 2010, the state received about $500 million in federal aid for education under the American
Recovery and Reinvestment Act of 2009 (ARRA). The ARRA aid replaced state education aid, accounting for a large share
of the state aid decrease from the 2008/2009 school year to the 2009/2010 school year, followed by an increase to the 2010/2011 school year.
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Per Capita Maps
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The Past Five Years of Education Aid
The table below shows the distribution of education aid in thousands of
dollars for the past five years for the state and economic development regions.
The graph shows total dollars of education aid for that same time period in
nominal (actual) and constant (inflation-adjusted) dollars.
|Education Aid: 2009/2010 School Year to 2013/2014 School Year
|Nominal dollars, in thousands
||5-Yr. Chg. Aid
West Central (4)
East Central (7E)
|Six East (6E)
Upper MN Valley (6W)
Central MN (7W)
Southeastern MN (10)
Statewide Education Aid