Blog
As discussed in a previous blog, base (or primary or foundation) funding covers the core costs of public education. Supplemental funding builds on that base by providing additional resources for students and districts with higher needs.
States have a lot of flexibility in deciding which student and district characteristics qualify for supplemental funding and how much additional funding districts receive. While base funding models—most commonly student-based, resource-based, or hybrid approaches—cover the basic costs of providing public education, supplemental funding is designed to support the additional services, staff time, or resources some students and districts need to fully benefit from that education.
In this blog, we explain what characteristics often prompt a state to provide supplement funding and the most common ways states design and deliver these funds. As in our previous blog on how state's allocate funding, we will again use a simple analogy — a district-wide field trip — to illustrate how supplemental funding helps states provide additional support so all students can fully participate and benefit.
We begin by outlining which student and district characteristics states commonly consider when providing supplemental funding, then walk through the mechanisms states use to calculate and deliver those funds. You can explore how these approaches vary by state using our Funding and Finance Data Map.
Who Receives Supplemental Funding and Why
We know that districts educate students with many different needs. While the primary funding model is used meet the majority of needs for most students, some learners need additional services, staff time, or materials to access education. Supplemental funding helps districts cover those extra costs.
For example, on our hypothetical district-wide field trip, we want to be sure that every student can both go on the field trip and make the most of the experience. While many students can do that with what is allotted through primary funding, some students need additional support – a special seatbelt, tickets to a more challenging exhibit on the trip, or trained staff to help them throughout the day. Some districts may also have higher costs because they are rural (longer travel distances meaning higher fuel costs) or very small (less infrastructure and hiring pool to support daily operation).
Supplemental funding is like the state providing extra resources so that all students can get the most out of the field trip. In an actual district, this can mean specially trained staff to help students with higher needs access the curriculum, after-school programs to help close achievement gaps, or specialized equipment or materials to participate fully in instruction. Some districts may be very small or struggle with teacher recruitment and retention and therefore need additional resources to meet student needs. The table below summarizes common student and district characteristics for which states provide supplemental funding and shows the number of states that provide supplemental funding for each one.
Common Student and District Characteristics States that Qualify for Supplemental Funding
Summary of Supplemental Funding Student and Community Characteristics
| Characteristic | Characteristic Summary for Funding | # of States Supplementing Funding |
|---|---|---|
| Students with disabilities | Defined in federal statute as students with 1 or more of 13 disability categories that require special education. States may deviate from this singular definition for funding purposes, such as funding based on disability type or other considerations. | All |
| Students who are English learners | Defined in federal statute as a student whose native language is not English and has difficulties speaking, reading, writing, and/or understanding English. Some states have a single amount for all English learners, and some vary based on a student’s level of English language proficiency. | 49 |
| Students from low-income families and at-risk students | Definitions vary but often include one or more of the following: eligibility for federal free or reduced-price meals; Medicaid, Children’s Health Insurance Program, Temporary Assistance for Needy Families, or the Supplemental Nutrition Assistance Program eligibility; or measures of academic risk for not meeting learning expectations. Some states provide even greater funding for low-income/at-risk students in areas with high concentrations of low-income/at-risk students. | 45 |
| Students who are gifted and talented | There is no single approach to defining or identifying students eligible for gifted and talented programs. In some states, districts receive additional funding for each identified student or receive funding based on an assumption that a fixed percentage of their students will qualify. Others create competitive grants that districts apply for to receive this funding. | 37 |
| Grade level | States sometimes modify funding by the number of students in certain grade levels. States may modify funding amounts across levels (e.g., elementary, middle, and high) or for specific grades that may have different structures and costs (e.g. pre-K or Kindergarten). | 10 include Pre-K in their funding formula |
| Low enrollment districts | Districts and schools with low enrollments require more funding, on a per-student basis, to ensure basic staffing and operation are met. Definitions of low enrollment vary by state, and sometimes also require the district be geographically isolated. | 36 |
Common Supplemental Funding Mechanisms
There are five common ways that states provide supplemental funding:
- Single per-student weight
- Multiple per-student weights
- Resource-based funding
- Grant programs
- Capitated funding (used less often)
A quick word on weights: When a state’s primary system is student-based, supplemental funding is often delivered through “weights.” A weight is a proportion of funds added on top of that primary funding amount. If we imagine the primary funding amount being a weight of 1, then, a state using a weight of 1.05 for a particular characteristic would send districts the primary funding formula amount, plus 5% of the primary funding amount, for each student with that characteristic.
Let’s look at each kind of supplemental funding using our field trip example.
Single Per-Student Weight
Some states give funding in addition to primary funding for each student with specific needs by giving that student additional dollars. This is often described as “extra weight” added to the primary funding.
For example, the state may decide that if a student going on the field trip has a disability, they qualify for specialized support on the trip. That student gets the primary funding amount plus an additional 25% to cover staff, materials, and equipment on the field trip. That means the student would be funded at 1.25 times the base amount: primary funding plus a single weight of .25.
Multiple Per-Student Weights
This funding works in two different ways: (1) there may be variation in the cost of serving a student within a single student characteristic, like having a disability or being an English learner, and (2) There may be a higher concentration of students with a specific characteristic in a particular district that create greater levels of need in this community. Multiple weights can be used to provide differentiated funding in both cases.
In the first case, students who are English learners on our field trip may have varying levels of English language proficiency and therefore varying needs. A state may decide to fund students with a very low level of English language proficiency at 1.15 times the primary funding amount and students with a moderate amount of English language proficiency at 1.05 times.
In the second case, our field trip goers come from a district where more than 50% of the families are designated as having a low income. In this case, the state may increase the low-income weight from 25% to 40% for each student count that is above the 50% threshold. For example, in a district with 100 students with 75 of those students eligible for the low-income weight, the district receives the low-income weight of 25% for 50 students and 40% for 25 students.
In both cases, multiple weights are used to tailor more nuanced supplemental funding to meet student and community needs.
Resource-Based Funding
Resource-based supplemental funding is most common in states that use a resource-based primary funding model. With resource-based supplemental funding, the state provides extra funding based on the cost of specific staff, services, or materials needed to serve students with specific needs. On our field trip, the state may provide funding for an additional special education staff member for every 10 students with disabilities attending the trip.
Cost Reimbursement, Grants, and Capitated Funding
Some states reimburse districts for approved costs after the money is spent on students and communities with specific characteristics. Other states offer grants that districts can apply for to meet student and community needs. Less often, a state provides a flat extra amount based on assumptions about a district’s needs, called “capitated” funding.
For our field trip, the state could supplement funding by having us submit receipts for the special bus we needed to provide an accessible ride to all our students (with prior approval, of course) and reimbursing us. Or, knowing that some students need translation services for some exhibits, we may have applied and received a supplemental funding grant from the state. In a capitated approach, the state would provide a set amount of additional funding based on assumptions about the needs of our district. For example, the state may assume that 5% of students in each district are gifted and talented, and provide additional funding, regardless of how many gifted and talented students are actually on the trip.
Bringing It All Together
Primary funding amounts are meant to cover the needs of most students in public schools. Supplemental funding adds support in an effort to give districts the resources to meet each child’s needs. This post is a high-level overview – but of course, every state has their own context and nuance and has to find the best funding model to meet student and district needs. Our State PK-12 Finance Map [insert link] highlights some of those nuances and can help you start to unpack how states approach funding.
As you learn more about your and other states’ funding approaches, ask yourself:
- What student needs are and are not being met by these current funding formulas?
- Are the primary and supplemental funding amounts enough to provide every student with a chance for success? If you want support in thinking through these questions and more, please email us!
Enjoy the trip!
