Modern Education Finance and Policy (Peabody College Education Leadership Series)

by Guthrie, James W.; Springer, Mathew G.; Rolle, R. Anthony; Houck, Eric A.

• ISBN13: 9780205470013
• ISBN10: 0205470017
• Edition: 1st
• Format: Paperback
• Copyright: 2006-09-07
• Publisher: Pearson

Summary

This first text in Allyn & Baconrs"s new Educational Leadership series from Peabody College, clarifies the complex financial issues facing educational administrators and presents them in a clear and engaging manner. This text was developed by the leading scholars in school finance as part of a series from one of the leading Schools of Education in the world. It is "Modern" not only in the sense that the information it presents is current, but in the manner in which it engages the reader to understand and apply that information. With its strong basis in current research, and easy-to-use, intuitive features, this book strikes an effective balance between the informational and the pedagogical. It covers trends (both historical and current) in educational finance and includes calculations and problems for students to work, and its "Modern" approach pays close attention to the new realities of accountability, resource allocation, and policy. The case studies and interactive pedagogy make this a very practical text.

Table of Contents

Series Preface	xii
Preface	xv
About the Authors	xxii
PART I Case Challenges Illustrating Modern Education Finance	1	(18)
CHAPTER ONE Education Finance Challenges Confronting Educators	1	(18)
CASE 1 River City Blues	1	(4)
CASE 2 Bay Point Principal's Performance Pressures	5	(3)
CASE 3 Trial Judge Complexities	8	(4)
CASE 4 An Elected Official's Dilemma	12	(2)
CASE 5 A Creative and Frustrated Teacher	14	(4)
Summary Questions	18	(1)
PART II Context, Control, Complexity, and Culture—Frameworks for Understanding Modern Education Finance	19	(108)
CHAPTER TWO Evolving Societal Contexts Shaping Modern Education Finance	19	(25)
INTRODUCTION	19	(1)
LEARNING OBJECTIVES	19	(2)
A PRELIMINARY POLICY PARADIGM	21	(1)
DEMOGRAPHIC AND ECONOMIC DYNAMICS	22	(10)
Demographic Developments	24	(3)
Economic Developments	27	(5)
EDUCATION IN THE UNITED STATES	32	(10)
Demand for Schooling: Enrollments	32	(2)
Supplier of School Services: Personnel	34	(3)
CASE 2 REVISITED: Bay Point Principal's Performance Pressures Governmental Arrangements	35	(2)
Financial Costs	37	(1)
Student Outcomes	37	(8)
CASE 5 REVISITED: A Creative and Frustrated Teacher	39	(3)
Summary	42	(1)
Discussion Questions	43	(1)
Web Resources	43	(1)
CHAPTER THREE United States Education Finance History: Classic and Modern Paradigms	44	(16)
INTRODUCTION	44	(1)
LEARNING OBJECTIVES	44	(1)
EDUCATION FINANCE'S THREE HISTORIC PHASES	45	(5)
Phase 1: Building a System of Schooling	45	(3)
Phase 2: Building a Scholarly Base	48	(1)
Phase 3: Seeking Equality	49	(1)
CASE 3 REVISITED: Trial Judge Complexities	50	(1)
THE EMERGENCE OF MODERN EDUCATION FINANCE INTO POLICY PRIME TIME	50	(2)
Significant Policy Conditions Supporting Modern Education Finance	50	(1)
Significant Reform Dynamics Supporting Modern Education Finance	51	(1)
MODERN EDUCATION FINANCE: WHAT IS "NEW" AND HOW THAT DIFFERS FROM PAST PARADIGMS	52	(4)
CASE 4 REVISITED: An Elected Official's Dilemma	52	(1)
Example 1: Defining Education Finance	53	(1)
Example 2: Conceptualizing Educational Adequacy	54	(2)
Summary	56	(2)
Discussion Questions	58	(1)
Web Resources	58	(2)
CHAPTER FOUR Control and Organization of American Education	60	(22)
INTRODUCTION	60	(1)
LEARNING OBJECTIVES	60	(1)
COMPETING PARADIGMS OF SCHOOL ORGANIZATION	61	(1)
Schools as Firms	61	(1)
Schools as Bureaucracies	61	(1)
CONTROL AND COMMITMENT IN PUBLIC EDUCATION	62	(1)
CONTROL AND COMMITMENT IN PUBLIC EDUCATION	62	(1)
CASE 5 REVISITED: A Creative and Frustrated Teacher	62	(1)
THE SEEMINGLY INFINITE SPECTRUM OF SCHOOLING STAKEHOLDERS	62	(1)
THE SCALE AND SCOPE OF UNITED STATES EDUCATION	63	(5)
CASE 1 REVISITED: River City Blues	63	(1)
Scale	64	(4)
CONSTITUTIONAL UNDERPINNINGS OF EDUCATION'S COMPLEXITY AND DIVERSITY	68	(2)
EDUCATION GOVERNANCE: STATE PLENARY AUTHORITY	70	(1)
THE STRUCTURE OF STATES FOR GOVERNING EDUCATION	70	(3)
General Government and Education	71	(1)
State Education Officials	71	(1)
State Education Departments	72	(1)
Other State Agencies	72	(1)
INTERMEDIATE UNITS	73	(1)
SCHOOL DISTRICT ORGANIZATION	74	(2)
New England School District Organization Model	74	(1)
Mid-Atlantic or Southern Model	75	(1)
School District Numbers and Consolidation	75	(1)
Fiscal Dependence and Independence	76	(1)
School Boards	76	(1)
Superintendents	76	(1)
INDIVIDUAL SCHOOL ORGANIZATION	76	(1)
PRIVATE AND INDEPENDENT SCHOOLS	77	(1)
FEDERAL GOVERNMENT EDUCATION STRUCTURES	77	(1)
RESIDUAL ISSUES OF CONTROL	78	(1)
THE EVOLVING ORGANIZATIONAL AND CONTROL CONTEXT OF EDUCATION FINANCE	78	(2)
Summary	80	(1)
Discussion Questions	80	(1)
Web Resources	80	(2)
CHAPTER FIVE Legal Complexities of Modern Education Finance	82	(22)
INTRODUCTION	82	(1)
LEARNING OBJECTIVES	82	(1)
HISTORY AND CONTEXT—SEMINAL EDUCATION FINANCE COURT CASES	82	(1)
ROLE OF COURTS	83	(1)
LEGAL CONCEPTS IN SCHOOL FINANCE LITIGATION	84	(3)
Standards for Judicial Reviews	85	(1)
Equal Protection Analysis	85	(1)
Suspect Classification	86	(1)
Fundamental Right	86	(1)
State Constitution Education Clauses	86	(1)
THREE WAVES OF EDUCATION FINANCE LITIGATION	87	(15)
First Wave: Federal Equal Protection	91	(2)
CASE 3 REVISITED: Trial Judge Complexities	93	(1)
The Second Wave: State Equal Protection	93	(2)
The Third Wave: State Adequacy Claims (Equity II)	95	(7)
Summary	102	(1)
Discussion Questions	102	(1)
Web Resources	102	(2)
CHAPTER SIX Policy Cultures and Paradigms Shaping Modern Education Finance	104	(23)
INTRODUCTION	104	(1)
LEARNING OBJECTIVES	104	(1)
THE "COMPLEXITY" OF POLICY	105	(3)
DEFINING POLICY	108	(1)
Public Policy	108	(1)
Education Policy	109	(1)
POLICY SYSTEMS	109	(1)
VALUE SHIFTS AND POLICY CHANGE	109	(1)
EQUILIBRIUM THEORY	110	(1)
POLICY SYSTEM PARADIGMS	111	(4)
Policy Cultures	112	(1)
CASE 1 REVISITED: River City Blues	113	(1)
Policy Processes	113	(1)
CASE 2 REVISITED: Bay Point Principal's Performance Pressures	114	(1)
Policy Development	114	(1)
The Confluence and Confusion of Policy Reality	115	(1)
CASE 5 REVISITED: A Creative and Frustrated Teacher	115	(1)
POLICY ALTERNATIVES FOR RECALIBRATING EQUITY, EFFICIENCY, AND LIBERTY	115	(7)
A Statewide Education System	116	(2)
A Single State Education System with a Capacity for Charters or Contracts	118	(2)
A Local District Operating System with Multiple State Categorical Aid Programs	120	(1)
A Local District Operating System with a Heavily Monitored Cost-Based Block Grant	121	(1)
Rendering the Household as the Primary Decision Unit	122	(1)
Summary	122	(1)
Discussion Questions	122	(3)
Web Resources	125	(2)
PART III Mechanics of Modern Education Finance: Generating and Distributing Financial Resources	127	(136)
CHAPTER SEVEN Education Revenue: Sources and Characteristics	127	(39)
INTRODUCTION	127	(1)
LEARNING OBJECTIVES	128	(1)
CHARACTERISTICS OF TAXES	128	(13)
Basis	128	(1)
Equity	129	(4)
CASE 1 REVISITED: River City Blues	130	(3)
Liberty	133	(1)
Efficiency	133	(3)
Impact and Incidence	136	(3)
Yield	139	(1)
Cost of Administration and Compliance	140	(1)
Economic and Social Effects	140	(1)
Political Effects	141	(1)
COMPARISON OF TAXES	141	(18)
Personal Income Tax	142	(3)
General Sales Tax	145	(3)
Property Tax	148	(11)
TAX LIMITATION	159	(3)
Alternatives to Taxation for Education	160	(1)
International Comparisons of Tax Systems	161	(5)
CASE 3 REVISITED: Trial Judge Complexities	162	(1)
Summary	162	(1)
Discussion Questions	163	(1)
Web Resources	163	(3)
CHAPTER EIGHT Distributing State Education Funds	166	(28)
INTRODUCTION	166	(1)
LEARNING OBJECTIVES	166	(1)
EQUITY	166	(13)
Wealth Equalization	167	(2)
Minimum Provision Programs	169	(4)
Equal Access Programs	173	(3)
Equal Total Provision Philosophy: Full State Funding	176	(1)
Which Philosophy Is Best?	177	(2)
NEED EQUALIZATION	179	(2)
Entitlement	179	(2)
REIMBURSEMENT	181	(1)
ORGANIZATION ARRANGEMENTS	181	(1)
OVERVIEW	182	(5)
Cost Equalization	182	(3)
CASE 4 REVISITED: An Elected Official's Dilemma	184	(1)
Adequate Provision and Cost Adjustments	185	(2)
OTHER GOALS OF DISTRIBUTION SYSTEMS: EFFICIENCY	187	(3)
CASE 3 REVISITED: Trial Judge Complexities	187	(1)
Political Pressures on Distribution Systems: Spending Limits	187	(1)
Political Pressures on Distribution Systems: Tax Rate Limits	187	(1)
Political Pressures on Distribution Systems: Annual Budget Votes	188	(1)
Political Pressures on Distribution Systems: Direct Revenue or Expenditure Limitations	188	(1)
Political Pressures on Distribution Systems: Categorical Aid	189	(1)
Political Pressures on Distribution Systems: Choice	189	(1)
VOUCHERS AND TUITION TAX CREDITS	190	(1)
FAMILY POWER EQUALIZING	191	(1)
MAGNET SCHOOLS	191	(1)
COMPREHENSIVE STATE SCHOOL FINANCE PLANS	192	(1)
Summary	192	(1)
Discussion Questions	192	(1)
Web Resources	193	(1)
CHAPTER NINE Federal Governance and Education Finance	194	(24)
INTRODUCTION	194	(1)
LEARNING OBJECTIVES	194	(3)
ALL OF THIS CONTROVERSY FOR SEVEN PERCENT?	197	(3)
Guaranteeing Opportunity	197	(1)
Countering Underinvestment	197	(1)
Capturing Scale Economies	198	(2)
CONSTITUTIONAL FOUNDATIONS OF FEDERAL EDUCATION POLICY	200	(4)
The 1st Amendment—General Welfare Clause	201	(1)
The 1st Amendment—Contractual Obligations	201	(1)
The 1st Amendment—Church and State Relations	201	(1)
The 14th Amendment—Equal Protection	202	(1)
The 14th Amendment—Due Process	203	(1)
THREE PILLARS OF SCHOOL FINANCE AND FEDERAL INVOLVEMENT	204	(8)
Equity: Ensuring Access	204	(3)
Efficiency: Ensuring Best Use of Public Resources	207	(4)
Liberty	211	(1)
NO CHILD LEFT BEHIND—A POLICY SHIFT ON THREE LEVELS	212	(1)
MAKING AND IMPLEMENTING MODERN EDUCATION POLICY	213	(2)
Making a Bill into Law	213	(1)
Implementation and Administration	213	(1)
Appropriation	214	(1)
Gaining Administrative Compliance	215	(7)
CASE 1 REVISITED: River City Blues	215	(1)
Summary	215	(1)
Discussion Questions	216	(1)
Web Resources	216	(2)
CHAPTER TEN Budget Planning and Administration	218	(24)
INTRODUCTION	218	(1)
LEARNING OBJECTIVES	218	(1)
A PRODUCTIVITY PROBLEM PREAMBLE	218	(2)
BUDGETARY PROCESSES	220	(2)
PLANNING	222	(8)
Basic Planning Concepts: Approaches, Philosophies, and Techniques	223	(7)
BUDGETING	230	(10)
Basic Budgeting Concepts: Assumptions, Power, and Methods	230	(5)
CASE 1 REVISITED: River City Blues	231	(4)
The Budgeting Phase: Development of the Budget	235	(5)
Evaluation	240	(1)
Summary	240	(1)
Discussion Questions	240	(1)
Web Resources	241	(1)
CHAPTER ELEVEN Managing Capital Projects and Fiscal Resources	242	(21)
INTRODUCTION	242	(1)
LEARNING OBJECTIVES	242	(1)
CAPITAL CONSTRUCTION	242	(9)
Demography and School Construction	243	(2)
Building a New School	245	(2)
Architectural Planning	247	(1)
Bidding	248	(1)
Construction	249	(1)
Completion and Preparation for Use	250	(1)
SCHOOL DEBT AND ITS MANAGEMENT	251	(11)
Reasons for Borrowing	252	(1)
Management of Short-Term Debt	253	(1)
Long-Term Debt	254	(1)
Authorizing Bonds	255	(1)
Selling Bonds	256	(1)
Interest and Principal Payments	257	(3)
Ways of Financing Capital Improvements	260	(6)
CASE 4 REVISITED: An Elected Official's Dilemma	261	(1)
Summary	262	(1)
Discussion Questions	262	(1)
Web Resources	262	(1)
PART IV Dynamics of Modern Education Finance: Challenges of Equality, Efficiency, and Liberty	263	(82)
CHAPTER TWELVE Equality/Equity	263	(22)
INTRODUCTION	263	(1)
LEARNING OBJECTIVES	263	(1)
DECIDING WHAT TO MEASURE	263	(1)
STRATEGIC APPROACHES TO EQUALIZATION	264	(2)
EQUITY MEASURES	266	(9)
Horizontal Equity	267	(4)
Vertical Equity	271	(2)
The Unit of Measurement	273	(2)
MULTIVARIATE METHODS	275	(1)
STATUS OF EQUITY	276	(6)
Comparisons among States	276	(15)
CASE 3 REVISITED: Trial Court Complexities	276	(4)
CASE 6: Intradistrict Equity	280	(2)
Summary	282	(1)
Discussion Questions	283	(1)
Web Resources	283	(2)
CHAPTER THIRTEEN Equity II (Adequacy)	285	(18)
INTRODUCTION	285	(1)
LEARNING OBJECTIVES	285	(1)
EVOLVING POLICY SYSTEM DEMANDS FOR DETERMINING SCHOOLING COSTS	286	(2)
CASE 3 REVISITED: Trial Court Complexities	286	(2)
HISTORIC QUESTS FOR DETERMINING THE RIGHT AMOUNT TO SPEND	288	(3)
A FRAMEWORK FOR APPRAISING COSTING-OUT STRATEGIES' STRENGTHS AND WEAKNESSES	291	(3)
Goal Inclusion	292	(1)
Research Validity	293	(1)
Model Specification	293	(1)
Methodological Transparency	293	(1)
Reliability	293	(1)
Time Orientation	294	(1)
Data Dependency	294	(1)
CONTEMPORARY COST-MODELING STRATEGIES	294	(6)
Econometric Approaches	294	(3)
Resource Cost Model Approach	297	(2)
Market Dynamics Approach	299	(1)
LONG-TERM ACTIONS	300	(1)
INTERMEDIATE-TERM ACTIONS	301	(1)
Summary	301	(1)
Discussion Questions	301	(2)
CHAPTER FOURTEEN Efficiency	303	(24)
INTRODUCTION	303	(1)
LEARNING OBJECTIVES	303	(2)
DEFINING EDUCATIONAL EFFICIENCY	305	(1)
Allocative Efficiency	305	(1)
Technical Efficiency	306	(1)
MEASURING EDUCATIONAL EFFICIENCY	306	(3)
A Critique of the Normative Approach	307	(1)
A Relative Solution to a Normative Problem	308	(1)
WRINGING EFFICIENCY FROM THE SYSTEM: POLICY INTERVENTIONS TO IMPROVE EFFICIENCY IN SCHOOLS	309	(2)
Closing the Academic Achievement Gap	309	(2)
CASE 2 REVISITED: Bay Point Principal's Performance Pressures	310	(1)
ZERO COST AND LOW COST TACTICS FOR RENDERING SCHOOLING MORE PRODUCTIVE	311	(15)
CASE 7: Equity Considerations	311	(2)
Intensifying and Extending Learning Tactics in Classrooms and Schools	313	(5)
Paying for Pupil Performance	318	(3)
Empowering Students	321	(1)
Empowering Principals	322	(1)
Privatization and Enfranchising Clients	322	(3)
Vouchers	325	(1)
Substituting Capital for Labor	325	(1)
Summary	326	(1)
Discussion Questions	326	(1)
CHAPTER FIFTEEN Liberty	327	(18)
INTRODUCTION	327	(2)
CASE 8: Cathy's Choice	327	(2)
LEARNING OBJECTIVES	329	(1)
DIFFERING VIEWS OF LIBERTY	329	(5)
State-Level Liberty and the Federal Role	330	(1)
District-Level Liberty and the State Role	331	(1)
Family-Level Liberty: School Choice	331	(2)
Subsidiarity	333	(1)
INCREMENTAL MEANS FOR ENHANCING SCHOOL CHOICE	334	(3)
Magnet Schools	334	(1)
Intradistrict Choice	335	(1)
Charter Schools	336	(1)
VOUCHERS: A BOLD PATH TO CHOICE	337	(5)
TUITION TAX CREDITS	342	(1)
OTHER MARKET MECHANISMS	342	(1)
LIBERTY AS ASPIRATION AND POLICY: NCLB AND THE FUTURE OF SCHOOL CHOICE	343	(1)
Summary	343	(1)
Discussion Questions	343	(2)
Appendix: Court Cases and Significant Federal Legislation	345	(2)
Glossary	347	(13)
Bibliography	360	(17)
Index	377