Essay 4 – Vic Vuchic Is Decentralization of School Management/School Finances Good for Student Achievement? Is It Good for Equity?” Decentralization of school management and school finances has been a hot topic in education policy for the last fifteen years. Decentralization has been championed as the solution to many of education’s woes including eliminating government bureaucracy, increasing efficiency and accountability, and improving the quality and relevance of K-12 education. While decentralization has many positive aspects to it, it is not the panacea it is often portrayed to be. In this essay I will review the four primary structures of the decentralization/centralization debate, and then I will discuss some of the dynamics decentralization may impact in the realms of student achievement and education equity. The following are the four main categories of school management and financing structures: 1. Centralized Financing and Centralized Management Complete centralization of the school system provides the federal government with total control over almost all financial distributions to schools as well as all administrative and curriculum decisions. There are several strengths of this approach. The government has the ability to ensure equity in both the financing and the quality of education. It is also able to provide consistent curriculum and assessment throughout the country, and it can enforce that a bare minimum level of educational support is provided to all of its citizens. This approach is often criticized because government bureaucracy is perceived as wasteful and inefficient. It is difficult for schools and communities to give feedback about their needs to the government. Lastly, it is more of a one-size-fits-all approach; for example, schools in rural areas will likely not benefit from policies meant to help urban school districts. 2. Centralized Financing and Decentralized Management Centralizing financing while decentralizing management allows government to control equitable financial distribution based on federal tax revenues while giving local governments and municipalities more control over how that money is spent and how the schools and curricula are run. This type of a setup works well for some areas, especially affluent ones, because it gives them more freedom to cater their schools around local needs and issues. However, it is sometimes very difficult for lower income areas to take advantage of decentralized management because they neither have the local expertise nor the resources to handle the responsibility of school management, and they often need to rely on the government for the planning and management of any school system. 3. Decentralized Financing and Centralized Management Decentralized financing makes communities raise funding for schools on a local level. This can obviously help affluent neighborhoods, but poor neighborhoods will tend to suffer due to lower local tax revenue. In these circumstances, government sometimes provides targeted support so that the community has at least a minimum level of funding. This practice is fairly common in the U.S. Unfortunately, this does not address the problem that children in lower income neighborhoods actually need more funding per student to achieve the same quality of education as a student in a more affluent community. Decentralized financing creates the biggest increase on inequalities in education. 4. Decentralizing Financing and Decentralizing Management Full decentralization gives local communities all of the freedom as well as the entire burden of raising funding and managing the provision of education in the community. While certain affluent areas can handle this, many lower income communities or regions just do not have the tax base or the resources to handle this situation. Each of these four approaches can be administered in a hybrid manner. For example, rather than completely decentralizing the financing or administration to communities, some countries like the U.S. and Australia tend to delegate only certain aspects of management from federal to the state level so that states manage financing and budgets along with the communities or districts themselves. This helps provide some level of redistribution and economies of scale for management. As it pertains to student achievement, decentralization may help kids in affluent areas because they will not have to share revenue with lower income neighborhoods. On the other hand, without any significant centralized support (even at the state level) lower income neighborhoods would struggle greatly. They would lose revenue that they used to get from the common pool. This creates a major problem because children in lower income neighborhoods actually require more capital per student in order to provide the same quality of education of higher income neighborhoods. Even with extra financial support from a centralized source, lower income communities need support and expertise in school management that they do not have locally. In conclusion, there are many different ways to centralize or decentralize various aspects of the provision of education. In some cases decentralization of certain areas may make sense and work for some communities. However, in other cases it can greatly increase inequality, while only improving education for a few select groups or communities. 1. Very well-structured. 2. 18/20