With 168 students, the Lancaster (Minn.) School District has about half the enrollment that it did at its peak 30 years ago. This has caused a steep decline in its state aid, which is based on a per-pupil formula. Minnesota's school-funding plan also isn't kind to Lancaster in another way, at least when compared with North Dakota's method. In North Dakota, districts with a lot of farmland are considered property rich. But in Minnesota, farmland isn't taxed for schools. Rural properties are taxed on the value of the home, the garage and one acre.