Educational Finance: Who Pays? Chapter 11

How long does it take to go from Christchurch to Duluth? hours by plane 2.24 hours by plane 3.34 hours by plane 4.Where’s Christchurch?

How much was raised for P-12 education during ? 1.About $100 million dollars 2.About $800 million dollars 3.About $2 billion dollars 4.About $420 billion dollars

The idea of free public education started with 1.Horace Mann and the common schools 2.Plato and the “Republic” 3.Old Deluder Satan and the Colonies 4.Jefferson and the Virginia Congress

Current expenditures by function ( ) Instruction: teacher salaries, textbooks, etc….61.5% Support services: school maintenance, nurses, library, etc….34.3% Noninstruction: food service, bookstore, etc….4.2%

Revenues by source ( ) State sources: 49.3% Local sources: 42.8% Federal sources: 7.9%

Periods of Federal Support Dual Federalism…state and federal government share responsibility for much of education, including finances National Federalism…during times of national crisis (Great Depression, after Sputnik, during the War on Poverty) New Federalism…reduced federal involvement: diminution, deregulation, decentralization, disestablishment, deemphasis

Need for Federal Dollars Between 1977 and 1994, the number of students with disabilities attending public schools increased 46%. (IDEA) 16% of children in the U.S. live below the poverty line. (additional services often needed, e.g. medical, dental, educational). NCLB…and its call for equity in education

Methods of Federal Support General aid…unrestricted monies…less accountability, reporting, evaluation Categorical aid…designated for specific programs Block grants…similar to categorical aid, although usually designated for programs, states have great discretion

State support of education Sales tax…33% State income tax…32% Corporate income tax…7% Excise taxes…16%

State funding of local school districts Flat grant plan…fixed amount of money per number of students Foundation plan…guarantee each student access to a minimum level of educational services (most common) Power-equalizing plan…inverse to the wealth of the district Guaranteed tax base plan…the state guarantees a certain amount, regardless of what the district raises (similar to power equalizing) Weighted student plan…students’ needs weighted in accordance with their special characteristics

Local support of education Property tax…95% User fees…fees charged to people who use the facilities