Nonequalization grants make no attempt to equalize funding for the capacity of local school districts. Although
these grants are not designed to be inequitable, they may have that impact. Many times, these grants provide
categorical aid to school divisions, allocating a constant dollar amount on a per pupil basis based on an
application process. Poorer school divisions may not have the personnel to write the grants enabling them to
qualify for the funds. Higher capacity systems may have the grant-writing personnel and obtain the funds. As a
result, this grant application process itself adversely affects equalizing funding.
Matching grants are similar to nonequalization grants. They require poorer and wealthy school systems to
generate an equal per pupil funding as the grant amount. Since this requires the poorer school systems to
exert greater fiscal effort than is required of the wealthy systems, matching grants operate in a similar manner
to nonequalization grants.
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