Since the early 1970s, secondary vocational education (SVE) in Minnesota has been funded either by paying districts a flat percentage of eligible costs or by paying a percentage of eligible costs plus paying for certain excess costs. By the mid-1980s, a number of questions and concerns about SVE funding were emerging. Among the specific concerns raised were the following: financial support for SVE funding was declining; funding for equipment was inadequate; the existing formula did not necessarily recognize the excess costs resulting from vocational education; and the formula's focus was too narrow. In response to these concerns, a new SVE funding formula was implemented in fiscal year 1989. Under the new formula, which is still used, excess cost aid to districts is calculated for each SVE program as 75% of the cost of SVE salaries minus 50% of the general education revenue attributable to SVE pupils. The current aid formula has caused two concerns. First, a great deal of detailed information is required to calculate aid. Second, because the formula is designed to recognize the excess cost of small programs, it may encourage inefficiency by paying the most aid for the smallest programs and discouraging large programs. (MN)