School Finance : A Policy Perspective

by Odden, Allan; Picus, Lawrence O.

• ISBN13: 9780072823189
• ISBN10: 0072823186
• Edition: 3rd
• Format: Hardcover
• Copyright: 2003-09-10
• Publisher: McGraw-Hill Humanities/Social Sciences/Languages

Summary

"School Finance" is a core text for all masters and doctoral level students of educational administration that - in addition to a clear and concise presentation of the subject - offers unique computer simulations in which students can apply school finance formulas to better understand the real-world consequences of decisions and allocations.

Author Biography

Lawrence O. Picus is a professor of school finance and educational administration at the University of Southern California's Rossier School of Education. Allan Odden is professor of educational leadership and policy analysis at the University of Wisconsin-Madison.

Table of Contents

Preface	xv
1 INTRODUCTION AND OVERVIEW TO SCHOOL FINANCE	1	(26)
1. The Scope of Education Finance in the United States	2	(6)
Enrollment	3	(1)
Schools and School Districts	3	(1)
Impact on the Economy	3	(2)
School Revenues and Expenditures	5	(3)
2. Early Developments in School Finance	8	(3)
Early Actions	8	(1)
The Growing Importance of State Governments	9	(1)
Evolution of the State Role in Education Finance	10	(1)
3. Evolution of the School Finance Problem	11	(15)
Traditional Fiscal Disparities	11	(7)
Solutions to School Finance Inequities	18	(1)
A Different Type of School Finance Problem	18	(6)
The School Finance Problem as Fiscal Adequacy	24	(1)
The School Finance Problem as Productivity	25	(1)
4. Summary	26	(1)
2 LEGAL ISSUES IN SCHOOL FINANCE	27	(21)
1. The Beginning of School Finance Litigation	28	(1)
2. Equal Protection Litigation	28	(8)
The Rational Test	29	(1)
The Strict Judicial Scrutiny Test	30	(1)
School Finance Equal Protection Litigation	31	(5)
3. School Finance Litigation Based on State
Education Clauses	36	(1)
Giving Meaning to the Education Clause	37	(7)
Does Adequacy Require Equal Outcomes?	44	(1)
The Education Clause and Absolute Deprivation	44	(1)
A School Finance Legal Scorecard	45	(1)
4. Summary	46	(2)
3 A FRAMEWORK FOR ASSESSING EQUITY AND ADEQUACY IN SCHOOL FINANCE	48	(34)
1. Does Money Matter?	49	(2)
2. Equity in School Finance	51	(20)
Ex Ante Versus Ex Post	53	(1)
Unit of Analysis	54	(1)
Objects	55	(4)
The Group	59	(1)
Equity Concepts	60	(11)
3. Adequacy	71	(7)
Link to Litigation and School Finance Formulas	72	(1)
Measuring Adequacy	73	(1)
Studies of Adequacy	74	(4)
4. Summary	78	(4)
4 THE PUBLIC FINANCE CONTEXT	82	(42)
1. Taxation Overview	85	(2)
Trends in Federal, State, and Local Taxation	85	(1)
Changes in Tax Structures	86	(1)
2. Assessing and Understanding Taxation	87	(8)
Public Finance Criteria for Evaluating Taxes	87	(8)
3. Analysis of Individual Taxes	95	(26)
The Income Tax	95	(6)
The Sales Tax	101	(6)
The Property Tax	107	(12)
Lotteries	119	(2)
4. Summary	121	(3)
5 SCHOOL FINANCE STRUCTURES: FORMULA OPTIONS	124	(52)
1. Intergovernmental Fiscal Relations	125	(6)
Advantages of a Federal Approach to Financing Education	125	(2)
Intergovernmental Grants and Their Objectives	127	(4)
2. School Finance Formulas	131	(40)
Equity and Adequacy of the Simulation Sample Districts	132	(4)
Flat Grant Programs	136	(6)
Foundation Programs	142	(10)
Guaranteed Tax Base Programs	152	(11)
Combination Foundation and Guaranteed Tax Base Programs	163	(8)
Full-State-Funding and State-Determined Spending Programs	171	(1)
3. Summary	171	(1)
4. Suggested Problems	172	(4)
6 ADJUSTMENTS FOR STUDENT NEEDS, EDUCATION LEVEL, SCALE ECONOMIES, AND PRICE	176	(47)
1. Adjustments for Different Pupil Needs	176	(34)
Development of Special-Needs Programs	177	(10)
Issues in Determining Costs of Special Needs Programs	187	(7)
General Approaches to Formula Adjustments for Special Needs Students	194	(4)
Distribution Formulas for and Costs of Compensatory Education Programs	198	(4)
Costs and Formulas for Financing Bilingual Education Programs	202	(3)
Costs and Formulas for Financing Special Education Programs	205	(3)
Simulation of Adjustments for Special Needs Students	208	(2)
2. Adjustments for Different Grade Levels	210	(6)
3. Adjustments for Size	216	(2)
4. Adjustments for Price Differences	218	(4)
Summary	220	(2)
5. Summary	222	(1)
7 IMPROVING STATE SCHOOL FINANCE SYSTEMS	223	(26)
1. A Framework for Analysis	223	(2)
2. School Finance in Vermont	225	(6)
The Vermont School Finance Problem	226	(2)
Improving the Vermont School Finance System	228	(3)
3. School Finance in Wisconsin	231	(7)
The Wisconsin School Finance Problem	232	(2)
Improving the Wisconsin School Finance System	234	(4)
4. School Finance in Illinois	238	(6)
The Illinois School Finance Problem	238	(3)
Improving the Illinois School Finance System	241	(3)
5. School Finance in Kentucky	244	(3)
Adjusted Base Guarantee	245	(2)
The Kentucky School Finance Problem and Simulated Improvements	247	(1)
6. Summary	247	(1)
7. Suggested Problems	248	(1)
8 SCHOOL DISTRICT BUDGETING	249	(31)
1. Defining Budgets	250	(1)
2. Approaches to Budgeting	251	(7)
Line-Item Budgets	253	(1)
Program Budgeting	254	(2)
Zero-Based Budgeting	256	(2)
Summary	258	(1)
3. Budget Preparation	258	(14)
Development of Budget Guidelines	258	(1)
Budget Preparation	259	(2)
Estimating Expenditures	261	(3)
Accounting for Expenditures and Revenues	264	(6)
Budget Preparation Summary	270	(1)
Budget Modification	271	(1)
Budget Approval	272	(1)
Administering the Budget	272	(1)
4. Budget Implementation	272	(7)
Distribution of Funds to the School Site	273	(1)
Allocation of Nonstaff Resources	274	(2)
Seattle	276	(1)
San Francisco	277	(2)
5. Summary	279	(1)
9 ALLOCATION AND USE OF FUNDS AT THE DISTRICT, SCHOOL, AND CLASSROOM LEVELS	280	(24)
1. Resource-Use Patterns in Education	281	(7)
Expenditures by Function Using National Data Sets	282	(1)
Expenditures by Function Using Individual State Data Sets	283	(2)
Expenditure Patterns by Expenditure Levels	285	(3)
Summary	288	(1)
2. Changes in Educational Resource Use Over Time	288	(4)
More Staff But Not Lower Class Sizes	291	(1)
3. School-Level Expenditures	292	(2)
4. Staffing Patterns	294	(6)
School-Level Staffing Patterns	296	(4)
5. Summary	300	(4)
10 USING EDUCATION DOLLARS MORE WISELY TO IMPROVE RESULTS	304	(19)
1. Staffing in America's Schools	305	(2)
2. Approaches to Resource Reallocation	307	(10)
Examples from School Restructuring	307	(2)
Examples from New School Designs	309	(4)
Late 1990's Mixed Strategies for Resource Reallocation	313	(3)
Simulating the Feasibility of Resource Reallocation	316	(1)
3. The Process of Resource Reallocation	317	(2)
4. Resource Reallocation and School Finance Adequacy	319	(2)
5. Summary	321	(1)
6. Suggested Paper Topic	322	(1)
11 FINANCING EDUCATIONAL FACILITIES	323
1. The Condition of School Facilities in the United States	323	(4)
2. Financing School Facility Construction and Repair	327	(9)
General Obligation Bonds	328	(4)
Court Rulings on School Facilities	332	(1)
State Assistance for School Facilities	333	(1)
District Facility Needs	333	(1)
Long-Term Costs of State Facility Programs	334
3. The Impact of School Facilities on
Student Performance	336	(9)
4. Summary	345
Appendix	A-1
Glossary	G-1
References	R-1
Author Index	I-1
Subject Index	I-5