How much state aid does IFA provide to districts?
The amount of state aid under the IFA program is based on the size of the district, its property values, the number of students in average daily attendance (ADA), and the amount of the annual debt service. The limitation on allotment is determined by comparing the size factor with the debt service payments. 1. Size factor = ADA x $250 (or $100,000, whichever is greater) 2. Highest annual debt service = the highest debt service payment due within the biennium in which the application is being made 3. Limitation on assistance = lesser of size factor or highest annual debt service of biennium Once the limitation on assistance is determined, the state aid is calculated by determining the amount needed to guarantee a yield of $35 per unweighted ADA per penny of tax effort. Example: District ABC has property values of $100,000,000, ADA of 1,000, and annual debt service payments of $100,000. Taxable property value = $100,000,000 property value $100 assessed valuation = $1,000,000 Tax yield pe
