The state aid comes from state collected sales tax, primarily income tax and sales tax. The purpose of this page is to provide a general summary of the funding sources for special education in Minnesota. Minnesota Schools Receive Local, State, and Federal Aid to Educate Children. There are three main categories of aid. First is state education finance which includes general education aid and categorical aids.
Special education is a categorical aid.
A second main category of aid is state paid property tax credits. And finally property tax levies are part of a formula that includes state aid. The basic general education formula establishes the minimum level of funding for school districts. General education aid is determined by subtracting the amount raised by the general education levy from the formula allowance multiplied by the number of pupil units. Pupil units are children basically.