scholarly journals School Finance Reforms, Teachers' Unions, and the Allocation of School Resources

2020 ◽  
Vol 102 (3) ◽  
pp. 473-489 ◽  
Author(s):  
Eric Brunner ◽  
Joshua Hyman ◽  
Andrew Ju
Keyword(s):  
Student Achievement ◽  
School Finance ◽  
New Teachers ◽  
Local Governments ◽  
Property Tax ◽  
State Aid ◽  
Teacher Compensation ◽  
School Resources ◽  
Teachers Unions ◽  
Tax Relief

School finance reforms caused some of the most dramatic increases in intergovernmental aid from states to local governments in U.S. history. We examine whether teachers' unions affected the fraction of reform-induced state aid that passed through to local spending and the allocation of these funds. Districts with strong teachers' unions increased spending nearly dollar-for-dollar with state aid and spent the funds primarily on teacher compensation. Districts with weak unions used aid primarily for property tax relief and spent remaining funds on hiring new teachers. The greater expenditure increases in strong union districts led to larger increases in student achievement.

Reconciling State Aid and Property Tax Relief for Urban Schools

2007 ◽  
Vol 40 (1) ◽  
pp. 36-61 ◽  
Author(s):  
Tae Ho Eom ◽  
Kieran M. Killeen
Keyword(s):  
Urban Schools ◽  
Property Tax ◽  
State Aid ◽  
Tax Relief

Assessment Matters: The Rise and Fall of the Illinois Resource Equalizer Formula

2020 ◽  
Vol 60 (1) ◽  
pp. 24-57
Author(s):  
Tracy L. Steffes
Keyword(s):  
School Finance ◽  
Property Tax ◽  
Local Property ◽  
The Political ◽  
Policy Choices ◽  
Tax Relief ◽  
The Law ◽  
Policies And Practices

This article explores the passage and failure of the 1973 Illinois Resource Equalizer formula which was designed to reduce disparities in school finance by breaking the connection between local wealth and school revenue. It argues that two sets of goals drove passage of the new law—equity and local property tax relief—and they came into conflict during implementation, with the latter winning out over the former. It argues that to understand both the passage and failure of the law requires looking deeply at the politics, policies, and practices of taxation, especially the methods of assessing property and levying taxes, where officials made decisions about how to apportion burden and benefits. The Illinois Resource Equalizer story highlights the political and policy choices that structure inequality through school finance at a moment when it was quietly defended and deepened.

Teachers' Unions and Student Achievement in High School Economics

1990 ◽  
Vol 21 (3) ◽  
pp. 297 ◽  
Author(s):  
Paul W. Grimes ◽  
Charles A. Register
Keyword(s):  
High School ◽  
Student Achievement ◽  
Teachers Unions

“Theoretically all Children are Equal. Practically this can Never be So”: The History of the District Property Tax in California and the Choice of Inequality

2020 ◽  
Vol 122 (2) ◽  
pp. 1-32
Author(s):  
Matthew Gardner Kelly
Keyword(s):  
School Finance ◽  
Research Question ◽  
Property Tax ◽  
School Funding ◽  
State Governments ◽  
Property Taxation ◽  
History Of ◽  
Long Term Trends ◽  
Funding Disparities

Background/Context Dealing mostly in aggregate statistics that mask important regional variations, scholars often assume that district property taxation and the resource disparities this approach to school funding creates are deeply rooted in the history of American education. Purpose/Objective/Research Question/Focus of Study This article explores the history of district property taxation and school funding disparities in California during the 19th and 20th centuries. First, the article documents the limited use of district property taxation for school funding in California and several other Western states during the 19th century, showing that the development of school finance was more complicated than standard accounts suggest. Then, the article examines how a coalition of experts, activists, and politicians worked together during the early 20th century to promote district property taxation and institutionalize the idea that the wealth of local communities, rather than the wealth of the entire state, should determine the resources available for public schooling. Research Design This article draws on primary source documents from state and regional archives, including district-level funding data from nine Northern California counties, to complete a historical analysis. Conclusions/Recommendations The history of California's district property tax suggests the need for continued research on long-term trends in school finance and educational inequality. Popular accounts minimizing the historical role of state governments in school funding obscure how public policies, not just market forces shaping property values, create funding inequalities. In turn, these accounts communicate powerful messages about the supposed inevitability of funding disparities and the responsibility of state governments to correct them. Through increased attention to long-term trends in school funding, scholars can help popular commentators and policymakers avoid assumptions that naturalize inequality and narrow the possibilities for future funding reforms.

scholarly journals Leviathan or Public Steward? Evidence on Local Government Taxing Behavior from New York State

2018 ◽  
Vol 49 (4) ◽  
pp. 671-693 ◽  
Author(s):  
Austin M Aldag ◽  
Mildred E Warner ◽  
Yunji Kim
Keyword(s):  
New York ◽  
Local Governments ◽  
Fiscal Federalism ◽  
New York State ◽  
Property Tax ◽  
General Purpose ◽  
Fiscal Stress ◽  
York State ◽  
Expenditure Limitations ◽  
Logistic Regressions

Abstract Fiscal federalism argues local governments compete to provide optimal tax-service bundles as responsible public stewards. In contrast, Leviathan theories argue tax and expenditure limitations (TELs) are necessary to make local governments fiscally responsible. We analyze local taxing behavior in New York State, which implemented a levy limit in 2012 that allows legislative overrides with 60 percent vote of the local governing board. Our 2017 survey of all general-purpose local governments measured fiscal stress, service responses, and local political attitudes and found 38 percent of municipalities voted to override. Logistic regressions show local governments that have more fiscal stress, weaker property tax bases, higher need, and higher employee benefit costs are more likely to override. These findings support fiscal federalism, as local governments that override are pushing back against state policy in order to respond to local needs. TELs introduce unnecessary rigidity and run counter to the precepts of fiscal federalism.

Income Redistributive Effects of State and Local Fiscs: Connecticut, a Case Study

1973 ◽  
Vol 1 (4) ◽  
pp. 372-387 ◽  
Author(s):  
A. T. Eapen ◽  
Ana N. Eapen
Keyword(s):  
Low Income ◽  
Local Governments ◽  
Property Tax ◽  
Tax Structure ◽  
Tax Progressivity ◽  
Transfer Payments ◽  
Low Income Families ◽  
State And Local ◽  
Redistributive Effects

Regardless of the alternative assumptions used to allocate taxes and benefits from expenditures of Connecticut state and local governments in 1967, this study shows that the incidence of taxes is regressive while that of expenditures is progressive. The regressivity of the tax structure is overwhelmingly due to the regressivity of the property tax. Progressivity of expenditures stems chiefly from transfer payments, housing, and hospitals which benefit primarily low-income families. On the basis of reasonable assumptions, it is shown that the state and local fiscs bring about, on the average a net redistribution of a mere two percent of income from families with annual incomes of $12,000 and above to those below that level.

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