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Understanding Revenue Derived from Local Sources [Education]: A Legal Perspective
Definition & Meaning
The term revenue derived from local sources refers to funds generated within the geographical limits of a local educational agency (LEA) that are available for its use. This includes:
Revenue generated directly by the LEA, such as local property taxes.
Funds collected by other governmental entities that are returned to the LEA in the same proportion as they were collected.
This definition is crucial for understanding how local educational agencies are funded and the financial resources available for educational programs and services.
Table of content
Legal Use & context
This term is primarily used in the context of education law, particularly in relation to funding for public schools. It is relevant in:
Determining eligibility for federal funding under programs like Impact Aid.
Assessing the financial health of local educational agencies.
Users can manage related forms and procedures through resources like US Legal Forms, which provide templates for various educational funding applications and compliance documents.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A local school district receives property tax revenue from homeowners within its boundaries. This revenue is used to pay teachers and maintain school facilities.
Example 2: A city collects a sales tax and allocates a portion of that revenue back to the local school district based on the amount collected in that district (hypothetical example).
Relevant laws & statutes
The primary statute governing this term is:
20 USCS § 7713, which outlines the definitions and implications of local revenue in the context of educational funding.
State-by-state differences
State
Local Revenue Sources
California
Significant reliance on property taxes and state funding.
Texas
Local districts have more autonomy in setting property tax rates.
New York
Heavy dependence on state aid along with local taxes.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Local revenue
Funds generated by local taxes and fees within a specific area.
State revenue
Funds collected by state governments, which may be distributed to local agencies.
Federal funding
Monies provided by the federal government to support education, often based on local revenue metrics.
Common misunderstandings
What to do if this term applies to you
If you are involved in the funding or management of a local educational agency, consider the following steps:
Review your agency's funding sources to understand your local revenue.
Explore US Legal Forms for templates related to educational funding applications.
If you encounter complex funding issues, consult with a legal professional for tailored advice.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.
Funding shortfalls, dependency on local economic conditions
Key takeaways
Frequently asked questions
Local revenue includes funds generated from property taxes, local sales taxes, and other fees collected within the local educational agency's boundaries.
Local revenue is a primary source of funding for schools, impacting their ability to provide resources, staff, and programs.
Yes, local revenue sources and their impact on school funding can vary widely by state due to different tax structures and funding formulas.