Monday,  December 10, 2012 • Vol. 13--No. 145 • 14 of 43 •  Other Editions

Impact Aid Schools May Soon See Improvements to Federal Payment Process


Since 1950, Congress has provided financial assistance to local school districts through the U.S. Department of Education's Impact Aid program. Impact Aid was designed to help compensate school districts for the loss of tax revenue caused by federal ownership of land, including tribal land and national parks, and for other reasons. In districts with federal property like national parks, the federal government provides compensation directly to the district in lieu of paying property taxes like typical landowners do. 
Many school districts in South Dakota rely heavily on Impact Aid money from the federal government each year to help cover annual expenses. There are 37 school districts in South Dakota that participate in the Impact Aid program. School districts eligible for Impact Aid include these revenues in their annual budget for the upcoming fiscal year, but due to complicated payment formulas, Impact Aid districts have suffered from persistently late distribution of these funds due to bureaucratic delays

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