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Did Proposition 2 1/2 affect local public education in Massachusetts? Evidence from panel data

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  • Ronald J. Shadbegian
  • Robert T. Jones

Abstract

Did Proposition 2 1/2 affect local public education in Massachusetts? Using a panel data set on school district budgets (1972–1992), the authors find the following. School districts constrained by Proposition 2 1/2 have significantly less own-source revenue. However, constrained districts receive significantly more intergovernmental revenue approximately offsetting the reduced own-source revenue, leading to no significant change in education spending. On the other hand, an analysis of a cross-section of school districts shows that student achievement in constrained districts is significantly lower than unconstrained districts. Thus, the evidence indicates that Proposition 2 1/2 reduces student performance in Massachusetts, even though it has no significant impact on school resources.

Suggested Citation

  • Ronald J. Shadbegian & Robert T. Jones, 2005. "Did Proposition 2 1/2 affect local public education in Massachusetts? Evidence from panel data," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 7(4), pages 363-380.
    • Handle: RePEc:ids:gbusec:v:7:y:2005:i:4:p:363-380
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    Cited by:

    1. Jeffrey Zabel, 2014. "Unintended Consequences: The Impact of Proposition 2½ Overrides on School Segregation in Massachusetts," Education Finance and Policy, MIT Press, vol. 9(4), pages 481-514, October.
    2. Sonali Ballal & Ross Rubenstein, 2009. "The Effect of Tax and Expenditure Limitations on Public Education Resources: A Meta-Regression Analysis," Public Finance Review, , vol. 37(6), pages 665-685, November.

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