http://www.prrac.org/full_text.php?text_id=971&item_id=8922&newsletter_id=0&header=Education
School budgets and the ways they are financed vary from state to state and school district to school district. Generally, though, states use a combination of income taxes, corporate taxes, sales taxes, and fees to provide about 50 percent of the budget for elementary and secondary schools. Local districts contribute around 43 percent, drawn mostly from local property taxes.
The federal government provides about 7 percent of state education budgets (National Center for Education Statistics, 2003).
School funding has traditionally been viewed as the province of local government. However, advocates for educational equity often criticize the localized nature of school funding because wealthier districts, due to their higher tax revenues, are able to provide better educational opportunity to their students. School funding plans have been challenged in over 30 states, with ongoing cases pending in New Jersey and New York. Information on these, and other school finance suits, can be found at The Campaign for Fiscal Equity or The Education Law Center.