Understanding Impact Aid

Impact Aid Program, signed into law by President Harry Truman in 1950, is the nation's oldest K-12 Federal education program developed to reimburse school systems for the lost revenue and additional costs associated with the presence of nontaxable Federal property. This includes military installations, Indian Trust or Treaty lands, Federal low-rent housing facilities, national laboratories, national parks, and other Federal buildings or lands. The York County School Division is one of more than 1,200 school divisions eligible to receive Impact Aid Funds.

The division's annual operating budget is funded in large part by local revenue - primarily a combination of local property taxes on homes and businesses or other local fees. However, federally impacted school districts face limitations because Federal properties are tax exempt. Impact Aid compensates for this lost revenue.

The number and percentage of federally connected students enrolled in our schools is a critical factor in determining how much Impact Aid funding YCSD receives. A school district can receive Impact Aid funding if it has at least 400 federally connected students in its Average Daily Attendance (ADA), or at least 3% of all children in its ADA are federally connected. More than 30% of all students enrolled in YCSD are federally connected.

While Impact Aid funds are based on the number of enrolled students who are federally connected, the money becomes part of the school system's general operating budget and applies to all students. For example, funds support instructional materials, teacher salaries, transportation, and technology.

Frequently Asked Questions

What does federally connected mean?
Federally connected does not just mean military families. It includes:

  • Active-Duty Members of the Uniformed Services who work/live on Federal Property
  • Active Full-Time Members of a foreign military who work/live on Federal Property
  • Civilians or Contractors who work on Federal Property
  • Families who live in Federally Supported Housing

Why do I have to complete these forms every year?
Since enrollment changes from year to year, the Federal government requires school divisions to count students every year before it allocates Impact Aid funding. This is why it is critical we receive a form for every student.

What information is collected?
For YCSD to receive Impact Aid, the Federal government requires we collect specific information to verify students are federally connected. For each student, this information includes both enrollment information (such as name, birth date and school) and residence and parent employment information (including, but not limited to, student address if on Federal property; name and address of the Federal property on which a parent is employed; and name, rank and branch of service of a parent who is a member of the uniformed services on active duty). The form must be signed and dated by the parent supplying the information.

How is this information shared and protected?
Information on the form is used only for purposes of submitting the Impact Aid application. It is subject to a school district's student privacy policy, as well as Federal and state laws protecting the privacy of students and families.

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