Understand Impact Aid Program in the San Juan School District

by Tyrel Pemberton
San Juan School District Business Administrator
The San Juan School District, encompassing a vast 7,800 square miles, faces unique financial challenges due to the presence of tax-exempt federal land within its boundaries.
This is where the Impact Aid program, a federal initiative, steps in to provide crucial financial support.
Impact Aid aims to compensate school districts for the loss of property tax revenue resulting from the presence of federal property. Essentially, it serves as a payment in lieu of taxes, ensuring that districts like the San Juan School District can provide quality education despite the limitations on their local tax base.
For the San Juan School District, Impact Aid funding has been instrumental in maintaining a robust educational system. The district receives between $4 to $8 million annually, a significant portion of which is allocated to:
Critical staffing positions: Teachers, aides, counselors, administrators, and support staff.
Capital projects: School renovations, equipment upgrades, technology enhancements, and security improvements.
Transportation: Covering the extensive transportation needs of a geographically dispersed district.
Student support: Funding tribal liaison positions for attendance tracking and providing supplemental support for early intervention and special needs students.
Early childhood education: Supporting preschool programs in schools situated on tribal lands.
Addressing
Misconceptions
There are some common misconceptions surrounding Impact Aid, which the district seeks to clarify:
# 1: Impact Aid funds should only be spent on schools that serve students from which the funds are generated: Impact Aid is not tied to specific student populations but is intended to replace lost property tax revenue for the entire district. Therefore, the dollars are treated just like property tax revenue, and the funds are distributed equitably to benefit all students.
# 2: Because a significant portion of the county is tax exempt federal property, the taxable property owners bear an unfair burden to support education for the entire county. Impact Aid effectively fills the gap left by the lack of local property taxes on federal land. In fact, the per-pupil funding from Impact Aid often exceeds what would be generated through local property taxes. The Impact Aid program takes that burden off of the local tax base and helps provide for the critical educational needs of the entire county.
Each January, the San Juan School District holds an Impact Aid hearing and submits an application to the Department of Ed for these funds. All County Residents are encouraged to attend the January School Board meeting when this hearing is held. The continued support of Impact Aid is crucial for SJSD to maintain its educational standards and provide equal opportunities for all its students. The district emphasizes the program’s vital role in their successes and future goals, urging for continued federal investment in Impact Aid.