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What factors should be considered important and included in developing a formula to distribute state resources to public schools and why? (i.e. poverty, diversity, transportation costs, staff seniority, etc)

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The cost-of-living factors are not contained in law, although the method for calculating the factors is. The cost-of-living factors are certified to the Department of Education by the Legislative Council Staff every two years following a study that measures the cost in each district of an identical set of items, such as housing, goods and services, transportation, and taxes.

A district's per pupil funding is the result of adjusting the statewide base by the district's cost-of-living factor, personnel costs factor, non personnel costs factor, and size factor.
The cost-of-living factors are not contained in law, although the method for calculating the factors is. The cost-of-living factors are certified to the Department of Education by the Legislative Council Staff every two years following a study that measures the cost in each district of an identical set of items, such as housing, goods and services, transportation, and taxes. The 2003 cost-of-living study modified the factors for the 2004-05 and 2005-06 budget years. Beginning with budget year 2004-05, a district's factor is increased when its percentage increase in cost of living is greater than the increase in the statewide average teacher salary. For instance, the 2001 study was based on an average teacher salary of $38,000. The 2003 study was based on an average teacher salary of $40,000, an increase of 5.3 percent. As a result, the cost-of-living factor only increased for those districts whose cost of living ...

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