Issue Briefs Subject(s): Education & School Finance (Pre & K-12) Published: December 1, 2015 Agency: Legislative Council Staff The “negative factor” is a provision in state law that reduces the amount of total program funding and state aid provided to K-12 school districts. This issue brief discusses how the negative factor is applied in the School Finance Act (SFA), gives a short history of school finance leading to the creation of the negative factor, and provides a summary of the recent legal challenge to the negative factor. Download Document