How We Are Funded
Revenue Sources
80% of PLSAS funds originate from the State, primarily for general education expenses like teacher salaries and classroom supplies. 17% is sourced from local property taxes and voter-approved referendums, while 3% comes from federal funding.
Approximately half of the state funds are categorical, meaning they are earmarked for specific purposes such as Special Education, school meals or building maintenance. These funds cannot be diverted for other uses. This money can only be used for the specific purposes it's been assigned to and not for anything else.
It's the job of the school district's administration and School Board to manage resources effectively to support educational needs.
How is revenue determined?
The state provides funding on a per-student basis. This means that funding is allocated to school districts based on the number of students they enroll.
Enrollment Increases: What is the impact?
Increased enrollment means additional revenue for schools, contributing to the overall financial health of a district. It also can lead to expanding academic programs, additional staffing and resources for classrooms and more overall opportunities for students.
Enrollment Decreases: What is the impact?
Because school funding is tied to student enrollment numbers, a decrease in student enrollment means a reduction in the amount of funding school districts receive from the state. This can lead to budget cuts that critically impact the district including staffing, programs and classroom resources.
What is PLSAS’ Student Enrollment?
Our enrollment has been on a slight decline since 2020, largely due to low birth rates, and it is not expected to increase in the next five years.
School districts receive revenue through the following main categories
Historic Funding Shortfalls
A funding gap persists due to historical shortfalls. If state funding had kept pace with inflation since 2003, PLSAS would have received $11+ million more in 2024-25.
In 2023, the MN Legislature allocated substantial funding for schools. Along with the additional funding, the legislature approved mandates that directed how much of the funding is spent. While the new funding is appreciated, we still have to find ways to cover some current and historical mandates that are underfunded or even unfunded by the state.
Educational Costs Per Student Vary Based On Learning Needs
Educational costs per student vary depending on individual learning needs. For instance, Special Education students may require additional support due to hearing or visual impairments, physical disabilities, behavioral disorders or learning disabilities.
Unfortunately, Special Education is not fully funded by the state. This means school districts, including PLSAS, must use general education funds to cover the shortfall.
At PLSAS, we have seen a recent increase in Special Education referrals, creating the need for more staff to provide appropriate support and remain in compliance with state requirements. We remain committed to providing high-quality services for our Special Education students while also seeking sustainable ways to fund a program that continues to be underfunded at both the state and federal levels.