Financing and
Governing America’s
Schools
Chapter 7
Follow the Money
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History of Property Tax…agrarian society,
wealth determined by size of farms
Property tax is now assessed on real estate,
sometimes on personal property
Urban school districts…limited resources,
funding many more services, leading to
municipal overburden
Reforming Education Finance
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San Antonia v. Rodriguez (1973), long history
of local communities funding education, court
declared that education was not a
“fundamental right” under the Constitution
In Texas, by the mid-80s per-pupil
expenditures ranged from $2, 112 to $19,333
In Edgewood v. Kirby (1989) Texas Supreme
Court unanimously decided that such
differences violated the Texas Constitution
Reforming Education Finance
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In California in Serrano v. Priest (1971), decided
education was a fundamental right in
Califronia…which brought forth more “Robin Hood”
reformers around the country
Proposition 13 limited the Serrano victory
The Abbott case in New Jersey (1990, 1998)
changed the focus to “educational outcome” rather
than “financial input”
Equal education went to “efficient education,
thorough education, adequate education”
America tolerates inequities
because:
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Local Control
Horatio Alger…individual effort
Genetics…why some succeed and others fail
Culture of Poverty
Flawed Studies…Coleman report
Previous increases have not brought
achievement gains
State funding
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Sales tax…common revenue source, more
than 40 states use it (2%-8%)
Personal income tax…more than 40 states,
more than 25% of state revenues
State lotteries…two-thirds of the states have
them
Sin tax (excise taxes) on tobacco and liquor
Federal Role
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Intrastate equity v. interstate equity…but
education is not a federal fundamental right
Categorical grants…specific categories and
educational needs
Block grants…lump sums of money with
great latitude for spending (80s and 90s)
money for computers not desegregation
efforts
The Future and School
Finance
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Accountability
Choice Programs
The Economy’s Impact on School Budgets
Local Fundraising
Decaying Infrastructure
Legal Control of Schools
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10th Amendment to the Constitution makes
education a state’s right
State Board of Education (not MN), Chief
State School Officer, State Department of
Education, School Districts (local boards of
education)
School Superintendent and
Principal
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Originally hired to relieve school boards of
growing administrative obligations (1837)
Dominant boards want functionary
superintendents
Factional board…political superintendent
Pluralistic board… advisor superintendent
Inert board…decision maker superintendent
Hidden Power in Schools
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School secretaries
Custodians
Parents “helicopter parents”
Businesses…educational partnerships