Funding is comprised of local property taxes and state revenues.
The local share of FSP is based upon a school district's property values. The amount of state foundation revenue a school district earns for a year can and does vary until the time when final values for each of the factors in the formula become available. This availability can be as late as midway into the next fiscal year, when property tax collections for the prior fiscal year are audited. The only constant in the foundation fund formula at the time a budget is adopted is the school district's local share. To ensure proper allocation of resources for each educational service, a local district must develop good initial estimates of each of these variables and then monitor the situation throughout the year.