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Equity in school finance: state aid to schools in New England

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  • Katharine L. Bradbury

Abstract

Perhaps the most widely held view of the Crash of 1987 is the Cascade Theory: the Despite the goal of equal access to comparable public education, spending disparities among school districts persist. All the New England states provide more school aid per pupil to poor districts than to rich districts. Nevertheless, districts with smaller per-pupil tax bases spend less per pupil and levy higher school tax rates than wealthier districts. Even in the two New England states with the smallest spending disparities, the richest one-fifth of the districts spend 20 percent more per pupil than the poorest fifth, on average. ; Several difficulties prevent easy solutions to these inequities. While state governments want to reduce disparities in spending and tax rates, state-mandated or state-financed equal schooling runs counter to another tenet of public eduation, local decisionmaking. Thus states design their school aid formulas to encourage poorer local districts to spend more on schools, but no formula can guarantee a specific outcome. Furthermore, equal dollar spending by different districts does not ensure a \"uniform\" education. A number of state courts nationwide have ruled insufficient their state governments efforts to put rich and poor districts on a more equal footing, leading state legislators to seek better-funded and better-targeted aid plans.

Suggested Citation

  • Katharine L. Bradbury, 1993. "Equity in school finance: state aid to schools in New England," New England Economic Review, Federal Reserve Bank of Boston, issue Mar, pages 25-46.
  • Handle: RePEc:fip:fedbne:y:1993:i:mar:p:25-46
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    File URL: http://www.bostonfed.org/economic/neer/neer1993/neer293b.pdf
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    References listed on IDEAS

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    1. 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;National Tax Journal, vol. 45(4), pages 405-419, December.
    2. 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.
    3. Katharine L. Bradbury, 1988. "Shifting property tax burdens in Massachusetts," New England Economic Review, Federal Reserve Bank of Boston, issue Sep, pages 36-48.
    4. Feldstein, Martin S, 1975. "Wealth Neutrality and Local Choice in Public Education," American Economic Review, American Economic Association, vol. 65(1), pages 75-89, March.
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    Cited by:

    1. Aaronson, Daniel, 1999. "The Effect of School Finance Reform on Population Heterogeneity," National Tax Journal, National Tax Association;National Tax Journal, vol. 52(1), pages 5-29, March.

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