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Incidence and Outcomes of School Finance Litigation: 1968-2021

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  • Eric A. Hanushek
  • Matthew Joyce-Wirtz

Abstract

School finance court cases have proceeded one or more times in all but two states. Plaintiffs ask the courts to rule that the existing funding formula is unconstitutional under state constitutions, and the defendants call for continuation of the existing finance formula. By compiling and analyzing the universe of such cases, we can accurately describe the nature of the cases, the decisions made, and the long run impact on overall financing of schools. Defendants win a slight majority of decisions with, surprisingly, their victories coming most frequently in low spending states and in low achieving states. And, while plaintiff victories on average yield an immediate increase in funding, they have no influence on long run growth in school spending.

Suggested Citation

  • Eric A. Hanushek & Matthew Joyce-Wirtz, 2023. "Incidence and Outcomes of School Finance Litigation: 1968-2021," NBER Working Papers 31271, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:31271
    Note: ED PE
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    More about this item

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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