State Strategies for Financing Career and Technical Education

Categorical Funding for CTE Programs Using State K–12 Funding Formulas (AY2011–12)

For those states that used the k–12 funding formula to support CTE programs, eight states did not provide categorical funding for CTE and seven states allocated categorical funding just to area CTE centers in AY 2011–12. The majority of states (37) did earmark state funds for CTE in AY 2011–12, using the following methods to distribute funds to local programs:

Student-based Formula

Funds are distributed relative to the number of CTE students enrolled in an LEA. States typically use one of three approaches: (1) proportional allocations, in which LEAs or programs receive a funding allocation relative to the number of students enrolled; (2) weighted student funding, which provides supplemental funding for CTE students in state basic aid formulas; and (3) differential weighting, which allocates funding for CTE students based on the program type in which they participate or to align with state instructional priorities.

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Unit-based Formula

Allocations are based on a set of educational inputs used to deliver CTE services, such as the number of instructors or administrators employed by an LEA or the equipment used to deliver instruction.

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Cost-based Formula

LEAs are compensated for CTE services based on their actual reported costs from the prior academic year. States may cap or limit the rate at which eligible expenses are reimbursed, meaning that only a portion of an LEA’s expenditures may be covered.

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Click on the interactive map below to view funding in each state.