Finance in Education Chapter 7

Early Development of State Responsibility Early settlers recognized the importance of education to the future of the United States, but they left the various states with the responsibility for its implementation and development. Education was not referred to specifically in the United States Constitution; interpretation of the Tenth Amendment delegated that responsibility differently depending on language in their state constitutions and legislation.

Development of School Finance Policies The states have developed their school finance systems largely by trial and error, with considerable difficulty and sacrifice. Public schools were originally largely by land grants, fees, tuition charges, and other nontax funds.

Land Grants The Northwest Ordinances of 1785 and 1787 and later land grants did much to help states develop public education. At first, local districts financed education with little or no assistance, and there were cast differences in a districts ability to provide quality education programs. By the early part of the twentieth century, the states were making grants to local districts.

Stages of School Finance Theory The period of local district financial responsibility, with little or no assistance from the state. The period of emerging state responsibility, with the use of flat grants, subventions, and other nonequalizing state allocations to local districts The emergence of the Strayer-Haig concept of a foundation program The period of refinement fo the foundation program concept Power or open-end (shared costs) equalization practices.

Theorists of School Finance The equalization principles of George D. Strayer and Robert M. Haig were being applied to school finance systems. Paul Mort and others did much to improve the equalization concept during the middle years of the twentieth century.