State Education Department

The State Aid Estimating Process

Each year school districts receive State aid to help support their operations. The amount of aid paid to the districts is based on the districts' needs as estimated by the districts and the State Education Department. However, actual needs often exceed the estimated needs, and as a result, many districts wait years before State funds are appropriated to cover prior years' shortfalls. At the time of our audit, 27 districts were owed at least $500,000 for such shortfalls, and an additional 130 districts were owed between $100,000 and $500,000. We audited the process for estimating school districts' State aid needs to determine whether the estimates could be made accurate and found that improvements could be made. For example, the process could be simplified, more reliable data could be used in developing the estimates, estimates could be submitted sooner by some districts, district estimates could be verified sooner by the Department, and the adjustments submitted by the districts could be recorded sooner by the Department.

For a complete copy of Report 96-S-90 click here.
For a copy of the 90-day response click here.
For a copy of the associated follow-up report click here.