Research Department, Minnesota House of Representatives, 2014. The Minnesota school finance system is the method by which funds are provided to operate public elementary and secondary schools. The bulk of state support for elementary and secondary education is distributed to school districts through the general education revenue program, which provides money for the current operating expenditures of the districts. The remaining portion of the state’s appropriation to local districts is provided through special purpose or categorical aids, such as special education aid and local property tax relief aids. The purpose of this guide is to describe the various state programs that provide financial aid to Minnesota school districts. It includes finance data as well as some historical background. Historical, legal, and descriptive information in the following pages provide the context for understanding the school finance system.
