Funding Formula

A funding formula is a systematic method used by organizations, such as governments or educational institutions, to allocate financial resources. It determines how much money each entity receives based on specific criteria, such as population size, needs, or performance metrics. The formula ensures that funding is distributed fairly and efficiently, addressing different needs and priorities. For example, a school district might receive funding based on the number of students enrolled, the level of special education services required, and overall community needs, ensuring resources support both equity and effectiveness in serving the community's interests.