Ms. Darling explained how the funding formula funds districts based on student characteristics, such as how many at-risk students are enrolled in the district and multidistrict online or extended high school students. At-risk students include students that are eligible for free or reduced lunch and certain English language learners. Ms. Darling discussed how the state counts students in each district. This is called the October count, which is the actual number for the current year, or an average of the current year and the last one, two, three, or four years, whichever is highest. Ms. Darling explained how the budget stabilization factor impacts a district's share of total program funding. The budget stabilization factor is applied to total program funding and is a percentage reduction in total program funding to reflect the actual amount of funding available for the state share of total program funding.