Education reform covers a broad list of issues and concerns that both Federal and State law makers can make changes to positively impact how our children educated. The Fair funding legislation is one of those issues that tops the list. The Fair Funding legislation is based upon a formula that looks at successful state wide school districts in comparison to those of failing school districts.
School District-Based Factors. The formula also includes three school district-based factors that reflect student and community differences throughout Pennsylvania’s school districts.
• Sparsity-Size Adjustment, which accounts for the unique cost differences incurred by small rural school districts.
• Median Household Income Index, which is based on a school district’s median household income compared to the statewide median household income.
• Local Effort Capacity Index, which calculates a school district’s ability to generate local tax-related revenue compared to the statewide median. This is measured by the Local Effort (the extent to which a district is carrying its burden by raising local revenues) and by the Local Capacity (the ability of a school district to generate local revenue, as estimated by personal income and property market value in the district). All these factors are applied to the student count to determine how much funding should be allocated to each school district.