PATTERNS OF MILITARY-RELATED
IMPACT AID SPENDING
In the 1998–1999 school year, the federal government provided Impact Aid funding for about 416,000 military-related children in 718 LEAs. The military population was divided into 155,000 students living on base (given a weight of one) and 261,000 students living off base (given a weight of 0.1), so the total number of weighted military students was about 189,000.1 The total Department of Education payments for military students was $244 million, or about 36 percent of the Impact Aid funding awarded under the BSP program.
The intent of the LOT formula is to distribute funds to LEAs in proportion to local “needs.” By design, this approach means that some districts will be reimbursed more than others for providing comparable educational services to students. For example, the Impact Aid reimbursement for an on-base military student will be higher in a district with a high concentration of federally connected students than in a district with few federally connected students.
We will rely on two types of measures to analyze patterns of Impact Aid spending across LEAs. First, we will examine the average payment a district receives for educating a federally connected student. As discussed in Chapter Two, total payments to a district reflect sev-____________________