Have you ever wondered how school finance functions? The following graphic was created by the Iowa School Finance (ISFIS) organization and provides a basic diagram of school finance. School finance operates in silos or categories that can only be used for certain expenses. The diagram shows funding sources depicted at the top and allowable expenditures at the bottom of each middle silo/category.
School districts have restricted funding sources which means not all funds can be spent on anything the district decides. State and federal law specifies what allowable expenditures are for schools. If you’re interested in a more thorough explanation we would love to further explain school finance in detail. Give us a call!