Strategic Funding and Finance-101: Glossary | Strategic Funding and Finance Center

May 2026

Glossary of education finance and school funding terms.
Term	Definition	Reference
Accountability metrics	Quantitative indicators used to evaluate educational performance, fiscal compliance, and program effectiveness.	U.S. Department of Education. (2018). ESSA accountability systems. https://www.ed.gov
Accounting codes	Standardized classification systems used to track revenues, expenditures, and functions in financial reporting.	Odden, A. R., & Picus, L. O. (2020). School finance: A policy perspective. McGraw-Hill.
Administrative Expenditures	Spending on activities related to managing and governing school districts, including central administration and leadership functions.	NCES. (2015). School finance indicators. https://nces.ed.gov/pubs2015/2015347.pdf
Alternative School	A school focused on supporting students who are at risk of failure. Depending on the state, this could include students who are at risk of dropping out, students with behavioral or emotional challenges, or youth involved in the justice system.	NCES. Public Alternative Schools and Programs for Students at Risk of Education Failure: 2000–01. https://nces.ed.gov/surveys/frss/publications/2002004/index.asp
Appropriations	Legal authorization by a legislative body to expend public funds for specified purposes.	Congressional Research Service. (2019). Introduction to the federal budget process. https://www.congress.gov
Audits	Independent examinations of financial records to assess accuracy, compliance, and internal controls.	U.S. Department of Education. (2023). Uniform guidance. https://www.ed.gov
Base Amount	Minimum guaranteed per-student dollar amount provided through the primary funding formula before adjustments.	Education Commission of the States. (2024). 50-state comparison: K–12 funding. https://www.ecs.org/50-state-comparison-k-12-funding-2024/
Bond Revenue	Proceeds from bonds issued to finance capital projects, repaid over time with interest.	Government Finance Officers Association. (2021). Debt management guidelines. https://www.gfoa.org
Bonds	Debt instruments issued to raise capital, repaid with interest over a defined period.	Government Finance Officers Association. (2021). Debt basics.
Budgeting Approaches	Methods used to plan and allocate resources, such as line-item, program, performance, or weighted student budgeting.	Odden, A. R., & Picus, L. O. (2020). School finance: A policy perspective. McGraw-Hill.
Capital Expenditures	Spending on long-term physical assets, such as land, buildings, construction, renovations, and major equipment purchases.	NCES. (2013). Appendix B: Definitions. https://nces.ed.gov/pubs2013/expenditures2/appendix_b.asp
Capital Outlay	Expenditures for long-lived assets such as buildings, land, and major equipment.	National Center for Education Statistics. (2022). Financial accounting for local and state school systems.
Career and technical education	High school programs that help prepare students for roles outside the labor market (e.g., family and consumer sciences) and general labor market preparation (e.g., employment skills, introductory technology skills, specific occupational training).	Career and Technical Education (CTE) Statistics—Secondary/High School Level Glossary. https://nces.ed.gov/surveys/ctes/tables/glossary_secondary.asp
Categorical funds	Funds restricted to specific student populations, programs, or purposes and subject to spending rules.	U.S. Department of Education. (2023). Funding 101.
Census count	The formal count of students, schools, etc. used to inform policy and funding decisions.	National Center for Education Statistics. Definitions deduced from Statistical Handbook. https://nces.ed.gov/statprog/handbook/index.asp
Census-based funding model	Allocates aid using assumed participation rates rather than actual identified student counts, commonly in special education.	U.S. Department of Education. (2024). IDEA annual report to Congress; Congressional Research Service. (2026). R44624.
Charter school	A public school that is exempt from certain state or local regulations and may operate independently or as a part of a school district (depending on the state). A charter school must meet all federal, state, and local health and safety requirements and comply with federal civil rights laws.	NCES. Documentation for the Common Core of Data School District Finance Survey (F-33), School Year 2021–22. https://nces.ed.gov/ccd/pdf/2024310_FY22F33_Documentation.pdf
City	A relatively population-dense, urbanized area.	NCES. Locale definitions. https://nces.ed.gov/surveys/annualreports/topical-studies/locale/defini…;
Cost factors	Student, district, or geographic characteristics outside local control that systematically influence education costs.	Odden, A. R., & Picus, L. O. (2020). School finance: A policy perspective. McGraw-Hill.
Cost of living adjustment	An automatic or periodic funding increase tied to changes in price levels or wages.	Education Commission of the States. (2023). COLA in school finance. https://www.ecs.org
Current Expenditures	Spending used to operate schools day to day, including staff salaries, benefits, supplies, and purchased services, but not buildings or long-term investments.	U.S. Department of Education, National Center for Education Statistics (NCES). Fast Facts: Expenditures (66)
Debt Service	Payments of principal and interest on outstanding debt.	Government Finance Officers Association. (2021). Debt management guidelines. https://www.gfoa.org
Economically disadvantaged	A measure of socioeconomic status used to determine if students qualify for specific funding and/or support (depending on state and district policies).	COE Glossary. https://nces.ed.gov/programs/coe/glossary
Elementary School	A school that offers at least Kindergarten through fourth grade education.	COE Glossary. https://nces.ed.gov/programs/coe/glossary
English Learner (EL) Funding mechanism	Provides additional funding tied to the enrollment or characteristics of English learner students to support language acquisition services.	Education Commission of the States. (2024). English learner funding. https://www.ecs.org
Encumbrances	Commitments of funds for contracts or obligations not yet paid, recorded to reserve budget authority.	Governmental Accounting Standards Board. (2020). Codification of governmental accounting.
English learner	A student whose native language is not English and they do not meet the state's English language proficiency criteria based on a state's English Language Proficiency assessment.	COE Glossary. https://nces.ed.gov/programs/coe/glossary
Facility cost adjustment	Funding adjustment reflecting regional variation in construction or facility operation costs.	Education Commission of the States. (2023). School facilities costs. https://www.ecs.org
Facility improvement district	A legally designated area authorized to levy taxes or fees for facility construction or improvement.	Education Commission of the States. (2022). School facilities finance. https://www.ecs.org
Federal Grants	Federal financial awards provided through formula or competitive processes to support defined activities.	U.S. Department of Education. (2023). Funding 101.
Federal Revenue	Funds provided by the federal government, primarily for supplemental and targeted programs.	U.S. Department of Education. (2023). Funding overview. https://www.ed.gov
Fiscal effort	An indicator of how much a state devotes to public education as a proportion of their ability to raise revenue overall for public services. Essentially, this indicator helps quantify how big the "education funding" piece of pie is compared to the larger economic pie.	School Finance Data Initiative. SID Codebook 2026. https://www.schoolfinancedata.org/wp-content/uploads/2026/02/SID_Codebo…;
Fiscal Year	A 12-month accounting period used for budgeting, financial reporting, and audits, defined by statute or regulation.	Congressional Research Service. (2019). Introduction to the federal budget process. https://www.congress.gov
Fixed Cost	Costs that stay the same even when student enrollment or service levels change in the short term, such as building leases, long-term contracts, or central administration.	American Institutes for Research. (2021). Standards for the Economic Evaluation of Educational and Social Programs. https://www.air.org/sites/default/files/Standards-for-the-Economic-Eval…;
FTE (Full-Time Equivalent)	A measure of the number of labor hours in comparison to a full-time schedule.
Gifted and talented	Students who have been identified by state and/or county policies to be capable of high achievement and intellectual capacity.	U.S. Department of Education. Definitions of terms: Javits Act. https://www.ed.gov/media/document/definitions-of-terms-javits-108392.pd…;
Grant	A formula-based or competitive award provided to support defined activities under prescribed conditions.	U.S. Department of Education. (2023). Funding 101.
Guaranteed Tax Base Model	A wealth-equalization model ensuring districts can raise equivalent revenue per pupil at comparable tax rates.	Education Commission of the States. (2021). Glossary of K–12 education funding. https://www.ecs.org/wp-content/uploads/10072021_Glossary-of-K-12-Fundin…;
High-Cost Services Funding	High-cost services funding helps districts pay for unusually expensive student services (often special education). Typically, districts cover costs up to a certain level, and the state provides additional funding once costs pass a threshold, often through grants or reimbursements	Education Commission of the States. (2021). Glossary of K–12 education funding. https://www.ecs.org/wp-content/uploads/10072021_Glossary-of-K-12-Fundin…;
Home school	Students aged 5 to 17 who receive their educational instruction primarily through a state-sanctioned home school program. Students in a home school can receive up to 24 hours of instruction through a public or private school.	COE Glossary. https://nces.ed.gov/programs/coe/glossary
Human capital	The value people bring to their work through their skills, knowledge, experience, and health. In education, human capital is often used to describe the time of all staff involved in educating students.	World Bank Group. (2019). The Human Capital Project: Frequently Asked Questions. https://www.worldbank.org/en/publication/human-capital/brief/the-human-capital-project-frequently-asked-questions
Hybrid Funding Model	Combines student-based allocations with resource-based or equalization components within a single formula.	Education Commission of the States. (2024). Primary funding models.
Instructional Components	Bundles of instructional resources (staff, materials, time) used to estimate the cost of providing education in adequacy models.	Education Commission of the States. (2021). Glossary of K–12 education funding. https://www.ecs.org/wp-content/uploads/10072021_Glossary-of-K-12-Fundin…;
Instructional Expenditures	Spending directly related to teaching students. This includes salaries and benefits for teachers and instructional aides, as well as textbooks, classroom supplies, and instructional services. It may also include costs related to extracurricular and co‑curricular activities that support learning.	Odden, A. R., & Picus, L. O. (2020). School finance: A policy perspective. McGraw-Hill.
Instructional Support Services Expenditures	Spending on services that support teaching and learning, such as staff training, instructional materials, libraries, and educational media.	NCES. (2013). Appendix B: Definitions. https://nces.ed.gov/pubs2013/expenditures2/appendix_b.asp
LCFF reporting cycles	California-required timelines for planning, adopting, reporting, and updating funding and program decisions under LCFF.	California Department of Education. (2023). Local Control and Accountability Plan (LCAP) overview. https://www.cde.ca.gov
Local Education Agency (LEA)	The public governing body responsible for providing education services within specific geographic bounds and/or school clusters.	Electronic Code of Federal Regulations. 34 CFR §303.23 — Local educational agency. https://www.ecfr.gov/current/title-34/section-303.23
Local Revenue	Funds raised locally, primarily through property taxes and local assessments.	Education Commission of the States. (2021). Glossary of K–12 education funding. https://www.ecs.org/wp-content/uploads/10072021_Glossary-of-K-12-Fundin…;
Long-term obligations	Financial commitments extending beyond one fiscal year, including debt and leases.	Government Accountability Office. (2022). *State and local government finance.
Low Income Student funding mechanism	Allocates supplemental funding based on student poverty indicators to address equity and opportunity gaps.	Education Commission of the States. (2024). Funding for students from low-income backgrounds*. https://www.ecs.org
Magnet schools	A school with specific programs (e.g., science and math, performing arts, language immersion) designed to attract students from different backgrounds (e.g., race, ethnicity, income) with a goal of reducing isolation of students from minorities.	CCD School and District Glossary. https://nces.ed.gov/ccd/commonfiles/glossary.asp
Maintenance of Effort	Fiscal requirement that education spending not fall below a defined prior-year level as a condition for receiving federal funds.	Congressional Research Service. (2026). IDEA funding: A primer (R44624). https://www.congress.gov
Multiple weights funding model	Uses multiple differentiated weights to allocate additional funding based on varying levels or types of student need.	Education Commission of the States. (2021). Glossary of K–12 education funding. https://www.ecs.org/wp-content/uploads/10072021_Glossary-of-K-12-Fundin…;
Non instructional expenditures	Expenditures on non-instructional services, including capital outlay, debt service, interfund transfers for elementary/secondary education, instructional support services, adult education, community services, payments to private schools, and payments to charter schools.	NCES. Documentation for the Common Core of Data School District Finance Survey (F-33), School Year 2021–22. https://nces.ed.gov/ccd/pdf/2024310_FY22F33_Documentation.pdf
Operating Expenditures	Spending used to maintain the day‑to‑day operation of a school district, including instruction and support services, but excluding capital outlay and debt service.	NCES. Documentation for the Common Core of Data School District Finance Survey (F-33), School Year 2021–22. https://nces.ed.gov/ccd/pdf/2024310_FY22F33_Documentation.pdf
Overrides	Voter- or board-approved increases above statutory spending or revenue limits.	Education Commission of the States. (2022). Local revenue limits. https://www.ecs.org
Per-student Expenditures	A way of expressing education spending as the average amount of money spent per student.	NCES. (2013). Appendix B: Definitions. https://nces.ed.gov/pubs2013/expenditures2/appendix_b.asp
Prekindergarten	Education for children ages 3-4 before Kindergarten. Prekindergarten may offer general and/or special education services.	COE Glossary. https://nces.ed.gov/programs/coe/glossary
Primary funding model	Main state-level formula used to distribute general K–12 operating funds to districts.	Education Commission of the States. (2024). 50-state comparison: K–12 funding. https://www.ecs.org/50-state-comparison-k-12-funding-2024/
Private school	A school that serves students in any or multiple PK-12 grade bands, relies on non-public funds for its operations, and is controlled and operated by individuals who are not publicly elected or appointed officials.	COE Glossary. https://nces.ed.gov/programs/coe/glossary
Public school	A school that serves students in any or multiple PK-12 grade bands, relies on public funds for its operations, and is controlled and operated by publicly elected or appointed officials.	COE Glossary. https://nces.ed.gov/programs/coe/glossary
Reserves	Funds set aside to address uncertainty, cash flow needs, or future obligations.	Education Commission of the States. (2024). K–12 funding sources. https://www.ecs.org
Resource-based funding model	Allocates funding based on prescribed staffing levels, resource ratios, or programmatic inputs rather than per-pupil dollars.	Education Commission of the States. (2024). Primary funding models.
Rural	Areas of low population density, typically far from urban centers and remote.	NCES. Locale definitions. https://nces.ed.gov/surveys/annualreports/topical-studies/locale/defini…;
Secondary School	A school that provides education for children after elementary school, but before postsecondary (i.e., college). This can vary by district.	NCES. Classification of Instructional Programs. https://nces.ed.gov/ipeds/cipcode/cipdetail.aspx?y=56&cipid=90454
Single weight funding model	Applies a uniform additional weight or dollar amount to the base funding for students meeting a defined criterion.	Education Commission of the States. (2021). Glossary of K–12 education funding. https://www.ecs.org/wp-content/uploads/10072021_Glossary-of-K-12-Fundin…;
Sinking Funds	Funds set aside to repay debt at maturity or through scheduled payments.	Government Finance Officers Association. (2021). Debt management guidelines. https://www.gfoa.org
Special Education funding mechanism	The approach a state uses to distribute funding for special education services, such as weighted, census-based, reimbursement, or resource-based methods.	Education Commission of the States. (2025). Special education funding mechanisms.
Special Education Services	Instructional and related services that are designed to meet the unique needs of a student identified as having a disability.	Individuals with Disabilities Education Act. 34 CFR §300.39. https://sites.ed.gov/idea/regs/b/a/300.39
SPED high-cost funding mechanism	Supplemental mechanism that offsets or reimburses districts for exceptionally costly special education services.	Education Commission of the States. (2025). High-cost special education funding. https://www.ecs.org
State Revenue	Funds provided by state governments to support K–12 education through formulas or categorical programs.	Education Commission of the States. (2024). K–12 funding sources. https://www.ecs.org
Student-based funding model	Allocates funding primarily on a per-pupil basis, with additional weights or add-ons reflecting student needs.	Education Commission of the States. (2024). State funding models for K–12 education. https://www.ecs.org
Suburban	A relatively population-dense area surrounding a city.	NCES. Locale definitions. https://nces.ed.gov/surveys/annualreports/topical-studies/locale/defini…;
Support Services	Spending on services that support school operations, including administration, transportation, and maintenance.	NCES. Documentation for the Common Core of Data School District Finance Survey (F-33), School Year 2021–22. https://nces.ed.gov/ccd/pdf/2024310_FY22F33_Documentation.pdf
Teacher	An individual with the required credentials and experience (based on state and local policies) who is responsible for providing instruction to students.	NCES. Documentation for the Common Core of Data School District Finance Survey (F-33), School Year 2021–22. https://nces.ed.gov/ccd/pdf/2024310_FY22F33_Documentation.pdf
Teacher or Instructional Unit	Staffing-based unit (e.g., teacher FTE or classroom) used in resource-based allocation formulas.	Education Commission of the States. (2021). Glossary of K–12 education funding. https://www.ecs.org/wp-content/uploads/10072021_Glossary-of-K-12-Fundin…;
Title I School Designation	A school receives Title I designation, which provides that school with specific funding and programmatic requirements (based on state regulations), when the percentage of children from low-incomes families enrolled in that school is at least as high as the percentage of children from low-income families across the entire district.	CCD School and District Glossary. https://nces.ed.gov/ccd/commonfiles/glossary.asp
Total expenditures	All spending by school districts in a year, including daily operating costs, building projects, and interest on debt.	NCES. Documentation for the Common Core of Data School District Finance Survey (F-33), School Year 2021–22. https://nces.ed.gov/ccd/pdf/2024310_FY22F33_Documentation.pdf
Town	A relatively population-sparse area outside of an urban area. Specific classifications depend on distance from urban centers.	NCES. Locale definitions. https://nces.ed.gov/surveys/annualreports/topical-studies/locale/defini…;
Transparency Requirements	Legal requirements ensuring public access to information on education funding decisions, spending, and outcomes.	U.S. Department of Education. (2023). Funding 101.
Variable Cost	Costs that increase or decrease as enrollment, services, or activity levels change, such as instructional supplies or hourly staff time.	American Institutes for Research. (2021). Standards for the Economic Evaluation of Educational and Social Programs. https://www.air.org/sites/default/files/Standards-for-the-Economic-Eval…;

Topic(s):

Funding & Finance 101