

How are
schools
funded?
What causes
school
funding
inequity, and

what are the
human
consequences
of such
inequity?
How are
courts

reshaping
school
finance?
How does the
federal
government

influence
education?
What are the
official roles
and
responsibiliti

es of school
governance?
What are the
"unofficial"
roles, or the
hidden
powers,

influencing
schools?
How are
organizationa
l innovations
and teacher
empowermen

t
transforming
schools?
The adequate
funding of
education
presents a
yearly
challenge for
state and
local
officials.
Each of the
most
common
strategies to
fund schoolsproperty tax,
sales tax,
personal
income tax,
state lottery,
and other
taxes-has
drawbacks.
Funding is
especially
difficult for
poorer
communities
and states,
where even
high tax rates
do not
provide
enough
money for
the schools.
Some states
have
experimented
with new
funding
methods,
such as
foundation
programs, a
guaranteed
tax base for
all districts,
and a
combination
of programs
to help
poorer
communities

fund schools,
but none has
proved very
successful.
States
provide
approximatel
y half the
cost of
education,
with local
communities
providing
most of the
rest. Local
communities
generally
fund their
schools
through a
property tax,
which many
people
consider
outdated and
unfair. Since
some areas
are wealthier
than others,
some school
districts
generate
more than
enough
money, while

others must
struggle to
keep schools
open.
Local
funding
disparities
have led to a
series of state
court
decisions
mandating
new state
formulas for
funding
schools.
These
decisions
have been
called Robin
Hood laws,
since they
require that
funding-level
difference
between
wealthy and
poor districts
be reduced or
eliminated.
Some courts
are even
mandating
changes
based on

differences in
educational
outcomes.
New
challenges to
school
finance
include
techniques
for tying
school
performance
to funding
levels
(accountabilit
y),
deteriorating
school
buildings and
materials
(infrastructur
e), the role of
the federal
government
in school
funding, and
the
continuing
effort to
ensure the
equal
distribution
of
educational
funds among

wealthy and
poor
communities.
According to
the U.S.
Constitution,
education is

the
responsibility
of the states.
At the state
level, the
legislature,
state board of
education,
state
superintende
nt, and state
department
of education
provide the
policy and
administratio
n of schools.
The state also
delegates
some of its
power to
local school
boards and
superintende
nts, who
administer
individual

school
districts.
The board of
education at
both the state
and local
levels is
responsible
for
formulating
educational
policy. The
chief state
school
officer, often
called the
superintende
nt, is
responsible
for
implementin

g the policies
of the board
of education.
The state
department
of
education's
tasks are
administrativ
e and include
licensing
teachers and
distributing

state and
federal funds.
On the local
level, the
responsibility
of school
operations
rests with the
local school
districts,
which
generally
have their
own school
boards and
superintende
nts. They are
responsible
for school
construction,
the hiring of
school
personnel,
and the
formulation
of school
policy, all
while

operating
within the
rules and
regulations
of the state.
The business
community
has had a
significant
impact on
schools.
Certain
businessoriented
vales, such as
competitiven
ess and
punctuality,
have been
adopted by
schools.
Moreover,
many
businesses
are becoming
directly
involved in
schools,
donating
products,
dollars, and
volunteers to
work with
students.

Parents,
school
secretaries,
and
custodians
can be
influential in
a teacher's
success.
They are part
of the hidden
government
of schools.

Consolidatio
n has
decreased the
number of
school
districts
while
increasing
the average
size of
schools.
Those who
oppose
consolidation
claim that it
leads to
higher costs
for
transportatio
n and
administratio
n but does
not increase
student
achievement.
Supporters of
consolidation
believe that it
increases
educational
opportunities
and
efficiency by
absorbing
small school
districts with
limited
educational
resources and
electives into
larger
districts.

Although
educational
responsibility
rests with the
states, the
federal
government
still plays an
important
role through
targeted
funds and the
setting of
national

standards and
goals.
Recently,
educational
partnerships
involving
parents,
community
groups, and
the business
sector have
had a
significant
impact on

local school
systems.
Traditionally,
teachers have
not had a
significant
role in school
governance.
However, the
recent trends
of schoolbased
management,
also called
site-based
management
and
collaborative
decisionmaking, may
provide
teachers with
a more
influential
position in
school
governance.