Virtually no federal revenue supports this mandated service. Not only are individual textbooks more expensive, but cycles of replacement and improvement create a constant requirement. State Aid is a product of a statewide formula that relates directly to the property valuation and level of expenditures of the district. The pressure on real estate taxes has also been increased by recent years' legislation which has reduced revenues the district receives from the taxation of motor vehicles. A major reduction in educational programs could be made to equal the loss of revenue.
Individual schools develop a budget based upon a resource allocation system.
Since individual school buildings staff through the district's allocation method, most of the accommodations for a changing school population have been absorbed internally. The legislature has made certain revenues available for local school districts. Primary among these sources which is protected constitutionally from state taxation is the local property tax. Thus the system of funding is based upon each district making use of the property tax at a comparative level. Historically, the local property tax has been the primary source of funding for school districts.