Chapter 10.4


What is the MV/PI Aid Ratio?

MV/PI Aid Ratio—or Market Value/Personal Income Aid Ratio—is a measure of local wealth that has been used in several education funding formulas for decades. The measure, which is a combination of a Market Value Aid Ratio and a Personal Income Aid Ratio, has a scale of 0.15 to 1, and it reflects the general wealth of the school district based a school district’s total market value and personal income per student in comparison to the state total market value and personal income per student.
A school district with a low MV/PI Aid Ratio is relatively wealthy. A high MV/PI Aid Ratio reflect low local wealth. For 2018-19, the MV/PI Aid Ratio ranges from 0.15 in many of the state’s wealthiest school districts to a high of 0.8983 in the poorest school district—Reading School District.
Click on the map below to view the MV/PI Aid Ratio for each school district.

The MV/PI Aid Ratio functions as a multiplier in the SEF formula. The Weighted Student Count is multiplied by the MV/PI Aid Ratio to ensure that the state distribution of SEF dollars reflects local wealth.
As an important aside, while an accurate reflection of local wealth in many school districts, the MV/PI Aid Ratio produces some surprising results in others, making it a problematic factor when defining local wealth in all 500 school districts. The basic education funding formula solved this problem by using the Median Household Income Index, which provides a much more accurate representation of "local wealth" across all school districts.