State Strategies for Financing Career and Technical Education

State Approaches to Funding CTE Programs (AY2011–12)

State approaches to funding CTE programs vary in their emphasis and complexity. Some states provide no dedicated funding for CTE, while others allocate state funds to area CTE centers or on a formula basis to all service providers in the state. State approaches fall into one of three categories:

Foundational Funding Only

Local CTE programs are financed out of general state aid formulas that provide no earmark for CTE. Because allocations to LEAs and IHEs are independent of student participation in CTE, local administrators must decide how funds should be distributed across instructional priorities.

Funding for Area CTE Centers

Dedicated funds are provided to support programming at area CTE centers that deliver CTE services to part-time students. CTE services offered in other locations in these states, such as at comprehensive high schools or community or technical colleges, may be supported through a state’s foundational funding formula.

Categorical Funding

Dedicated funding for CTE programs that is distributed to LEAs and IHEs to support career-related instructional services. These approaches—which may include student-based, cost-based, and/or unit-based formulas—typically target state funding for the exclusive use of CTE programming.