The Relationship Between Education Finance Reform and Tax and Expenditure Limitations
AbstractSince the success of Serrano v. Priest in California, at least 43 states have experienced legal challenges to their education financing formulas and in 19 states court rulings have forced changes in these formulas. A result of this litigation is a transfer of resources from districts with higher property tax values to those with lower property tax values. Over roughly the same time span, more than 30 states have imposed new restrictions limiting tax collections, tax expenditures or both (TELs) at the local level. There is evidence that the effect of education finance reform depends upon whether a TEL is in place. Thus to understand fully the impact of such litigation, one must consider whether reform makes the passage of a TEL more likely. In this paper we use data for all states in which referenda are possible over the 1978 â€“ 1990 period to investigate whether TEL referendums are more likely to pass in states where courts have ordered education finance reform. We find that the probability of TEL success in a statewide election is significantly higher if the state has experienced education finance reform.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Mid-Continent Regional Science Association in its journal Journal of Regional Analysis and Policy.
Volume (Year): 32 (2002)
Issue (Month): 1 ()
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Silva, Fabio & Sonstelie, Jon, 1995. "Did Serrano Cause a Decline in School Spending," National Tax Journal, National Tax Association, vol. 48(2), pages 199-215, June.
- George Stigler, 1972. "Economic competition and political competition," Public Choice, Springer, vol. 13(1), pages 91-106, September.
- William F. Blankenau & Mark L. Skidmore, 2004. "School Finance Litigation, Tax and Expenditure Limitations, and Education Spending," Contemporary Economic Policy, Western Economic Association International, vol. 22(1), pages 127-143, 01.
- Robert L. Manwaring & Steven M. Sheffrin, .
"Litigation, School Finance Reform, And Aggregate Educational Spending,"
Department of Economics
96-05, California Davis - Department of Economics.
- Robert Manwaring & Steven Sheffrin, 1997. "Litigation, School Finance Reform, and Aggregate Educational Spending," International Tax and Public Finance, Springer, vol. 4(2), pages 107-127, May.
- Steven M. Sheffrin & Robert L. Manwaring, 2003. "Litigation, School Finance Reform, And Aggregate Educational Spending," Working Papers 965, University of California, Davis, Department of Economics.
- Murray, Sheila E & Evans, William N & Schwab, Robert M, 1998. "Education-Finance Reform and the Distribution of Education Resources," American Economic Review, American Economic Association, vol. 88(4), pages 789-812, September.
- Downes, Thomas A., 1992. "Evaluating the Impact of School Finance Reform on the Provision of Public Education: The California Case," National Tax Journal, National Tax Association, vol. 45(4), pages 405-19, December.
- James Alm & Mark Skidmore, 1999. "Why do Tax and Expenditure Limitations Pass in State Elections?," Public Finance Review, , vol. 27(5), pages 481-510, September.
- Shadbegian, Ronald J., 1999. "The Effect of Tax and Expenditure Limitations on the Revenue Structure of Local Government, 1962-87," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 221-38, June.
- James Poterba, 1992.
"Capital Budgets, Borrowing Rules, and State Capital Spending,"
NBER Working Papers
4235, National Bureau of Economic Research, Inc.
- Poterba, James M., 1995. "Capital budgets, borrowing rules, and state capital spending," Journal of Public Economics, Elsevier, vol. 56(2), pages 165-187, February.
- Gramlich, Edward M & Rubinfeld, Daniel L, 1982. "Micro Estimates of Public Spending Demand Functions and Tests of the Tiebout and Median-Voter Hypotheses," Journal of Political Economy, University of Chicago Press, vol. 90(3), pages 536-60, June.
- Robert Stein & Keith Hamm & Patricia Freeman, 1983. "An analysis of support for tax limitation referenda," Public Choice, Springer, vol. 40(2), pages 187-194, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.