How do state foundation grants and equalization aid typically operate to fund districts with differing property wealth?

• A. Foundation program provides base per-pupil funding; equalization adjusts aid to bring per-pupil revenue to a target level, reducing disparities between wealthy and less wealthy districts.
• B. Foundation grants fund only transportation costs; equalization ensures equal per-pupil funding regardless of wealth.
• C. Equalization aid is capped by federal limits; foundation grants are only for teacher salaries.
• D. Districts must rely solely on local taxes; there is no state foundation funding.

Answer: (B)

Fundamental idea: two-part state funding uses a base amount per pupil plus a targeted adjustment to account for wealth differences. The foundation grant guarantees a base per-pupil amount that all districts receive, ensuring essential instructional funding. The equalization component then adds state aid to districts with lower property wealth so their total per-pupil funding moves toward a statewide target, helping to close the gap with wealthier districts. This setup recognizes that districts’ ability to raise money locally varies, but aims to bring overall funding for students to a more uniform level. It’s not about funding transportation costs alone, nor is it about applying federal caps or restricting funding to teacher salaries, and districts still rely on a mix of local and state funds rather than local taxes alone.