State Strategies for Financing Career and Technical Education
Cost-based Formulas (AY2011–12)
Cost reimbursement approaches compensate LEAs for providing CTE services, with compensation rates calculated based on their prior year’s expenditures. Districts report their actual costs for CTE programs each year with the expectation that they will be reimbursed for all or a portion of these expenses, as determined by state policies. Cost-reimbursement funding is dependent on the availability of state funds, meaning that most states reimburse LEAs for only a percentage of their prior year’s expenditures.
Nine states—Colorado, Iowa, Maine, Minnesota, Missouri, North Dakota, Oklahoma, Rhode Island, and Virginia—provide categorical state funding to reimburse LEAs for their program costs. Reimbursement approaches vary by state in terms of the rate at which states compensate LEAs and the expenses deemed eligible for reimbursement. Eligible expenditures range from equipment and materials to instructional salaries, transportation, curriculum development, and student support services.