Funding Schools
Show Us the Money!!!!
Where the Money Comes From
(Digest of Education Statistics)
• Local and intermediate sources
– 44%
• State sources
– 48.4%
• Federal sources
– 6.8%
Where Does It Go?
• Instruction
– 61.7%
• Noninstruction
– 4.3%
• Support and administration
– 34%
The Property Tax
• Primary method of local school funding
• Originated in agrarian society of
Colonial America
– Wealth was measured in land
• Dependent on the value of homes,
businesses and property in the
community
Problems with the Property Tax
• Overly dependent on local wealth
– Milford vs. Roxbury
– South Central LA vs. Beverly Hills
• Municipal overburden
– Urban areas have greater need for law
enforcement, medical services,
transportation, etc.
• Funds taken from same source as education
Reforming the System
• The Supreme Court votes against equal
education!
– San Antonio v. Rodriguez (1973)
• Edgewood=$37/student; Alamo
Heights=$412/student
• Declared that there was no fundamental right to
an education in the US Constitution
• Deferred to the local districts in decisions about
local control and funding
To the States
• State courts more likely to support
education reform
– Most state constitutions have a clause
concerning education
– Edgewood v. Kirby (1989)
– Serrano v. Priest (1971)
• Declared the local property tax system was
grossly unfair.
‘Thieving Bastards!!!’
• Robin Hood Reformers
– Intent on redistributing wealth from
wealthier to poorer districts
• Foundation Programs
– State provides funds to ensure a minimal
level of educational services
• Guaranteed Tax Base Program
– Adds state funds to poor districts
Reaction Against Reform
• Many Americans see school funding as
primarily local
– If a district is poor, that is a local concern.
– Neighborhoods should keep their own money!
• California
– PROPOSITION 13
• Limited any increase in property taxes to pay for
education
• Wealthy parents did not want to see transfer of wealth
outside local area
The State Contribution
• Sales Tax
– 30% of state’s income!
• Higher in some states
– Regressive
• Poor people spend higher % of income than
wealthy
The State
• Personal Income Tax
– 25% of state revenue
– Dependent on personal incomes
– Some states have lower average salaries
than others!
The State
• STATE LOTTERY
– Used in 2/3rds of states
– Supposedly used to SUPPLEMENT
education budget
• MOST STATES REPLACE EDUCATION
FUNDING WITH LOTTERY MONEY!!!!!
Other State Sources
•
•
•
•
Excise (Sin) Taxes
Severance Taxes
Motor Vehicle License fees
Estate or gift taxes
The Federal Government
• Supreme Court has ruled that there is
no fundamental right to an education
under the US Constitution
• Feds cover only 6-8% of all costs
The Feds
• Categorical Grants
– Directed at specific categories and
targeting specific needs
• Block Grants
– Lump sum of $ given to states with very
few requirements
– Little accountability in dispersal of funds
The Feds
• US Department of Education
– Established in 1979 under President Carter
– Researches, recommends, proposes
legislation related to schools
– Sometimes targeted for removal by some
groups
The State and the Feds
• UNFUNDED MANDATES
– Federal or state requirements that must be
met or face violation of the law, but schools
receive no funding to meet requirements
– Usually involve accountability, accessibility
issues