In my opinion the main issue impacting the state formula is the simple fact of not using the formula. Legislators continue to pass laws that allow wealthier schools to hold onto their money by using “hold harmless” clauses and providing grants and other programs “outside of the formula”. So, if a school is going to potentially lose money due to legislation, these "hold harmless" policies protect them.
The second issue if find very impacting to the state formula is the “Maintenance of Effort”, primarily in Special Education. Basically this forces a district to spend at least the same amount of money in Special Education as we did the previous year. With this in place there is no gain for a district to look for ways to consolidate learning, because we have to spend this money or we are penalized if we fail to do so.
Thirdly, is the large number of Chapter 41 loopholes. Many Chapter 41 school districts use these loopholes to keep their money within their district. Most Chapter 41 districts have lower taxes, better facilities, and are able to pay off multi-million dollar bond issues in a year or two. However, most Chapter 42 districts are required to have higher tax rates, mediocre facilities, and it would take them much longer to pay off bond issues. This seems to be a very unfair system when the legislator continually is pushing for equality.
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