Researchers from RAND's National Defense Research Institute analyzed the Impact Aid program, paying special attention to its effect on the children of members of the armed forces. The complex Impact Aid formula results in large payment disparities for the same type of students. Differences in how school districts are defined makes the link between them and reimbursements inherently flawed. Educational opportunities for military and civilian children appear roughly comparable. Concern over the extra cost of military children may be misplaced.
Military children have a much higher migration rate than do civilian children.
Two formulas determine the amount of the subsidy. One formula calculates a pro-rata basic support payment for different types of students. In this formula, an on-base student is assigned a weight of 1.0, while a student who lives off base receives a weight of 0.1. These weights reflect the fact that on-base families occupy federal land, which local jurisdictions cannot tax. However, because the Impact Aid program typically is not fully funded, a second formula is invoked.