Federal Impact Aid is not funded by the Department of Defense; it’s funded through congressional appropriations to the Department of Education. The funding has been steadily increasing over the last 30+ years. The first year Impact Aid was offered in the early 80’s at $850,000. Today, Impact Aid has now reached a whopping $1.28 billion – yeah, that’s a Billion with B. Approximately 40 percent of Impact Aid go to districts educating military children.
Personally, I think school districts need as much help as they can get. With tax revenue down in most cities over the past decade, schools are usually the ones who are the first to feel the pinch in a slow economy – schools are mostly funded by taxes and bonds. I’m glad they are tapping into every revenue source available to them. However, I think school districts are almost complacent with military connected children and this carte blanche revenue stream – they’ve forgotten why they are receiving it. My children are just another revenue source.
Supposedly, the impact on educating federally connected children is a loss of tax revenue for school districts, so this is the federal government’s way of helping out. It’s the school districts “tax” on the federal government for doing business. Even though, as military families, we still pay taxes, property taxes through rent or ownership, sales tax, state tax on spouse’s income if working, and all fees associated with utilities. The only thing that is missing could be the active duty spouse’s income – which is not taxed by the state and that could be considered a loss of revenue for schools. Although, I can’t confirm this is why schools receive aid for active duty members, it’s my best guess. It’s not explained in detail any where on the ww.Ed.gov site that I can find.
Aid is also offered as payout for federal lands located in tax district in which the state (and therefore the school cannot derive funds from). However, I would argue that federal lands and federal employees enhance the economies of the cities/counties in which they are located – in countless ways. You never hear about a community excited about a BRAC closure. No, because the base or installation is a key player in that community’s economy, in most cases the engine that drives all other business. If anyone can better explain this to me, I’m willing to listen.
It seems a bit convoluted to me.
