1. Education: A State Function
Chapter 7
Education: A State Function
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2. Early Development of State Responsibility
Early interest
Harvard-1636
laws of 1642 & 1647
ordinances of 1785 and 1787
James Madison-universities
Thomas Jefferson-appropriations of public lands
George Washington-national university
Article I, Section 8 of Constitution-general welfare of nation
10th amendment of Constitution-legal basis for state responsibility
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3. state interpretation of responsibility
state school system from local units
Mann and Barnard-state foundations
decentralized systems of education-developed over two centuries
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4. Development of School Finance Policies
Historically - costs of school operations defrayed with
nonmonetary services
state finance systems-diversity and lack of standardization
Education Commission of the States and national organizations-help states learn from each other
land grants and other nontax funds
state support developed slowly
beginning 20th century-17.2% of revenues from state sources
beginning 21st century-48% of revenues from state sources
early colonial period-land grants used to establish and support schools
gifts, rate bills and lotteries also used
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5. early taxation patterns largely permissive
favored city school districts-penalized rural areas
1890-all states had tax-supported school systems
1st quarter of 19th century-real beginning of taxing patterns and decline of nontax sources
today-nontax sources prevalent-lotteries, foundations, partnerships, gifts and benefits
taxation-remains primary source of state and school revenues
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6. Developmental States of School Finance
six stages of development
ease and transition of movement into modern and realistic stage dependent on
size of state
educational finance needs and traditions
educational leadership
period one-emphasis on local responsibility
original colonies-rate bills and tuition
early New England-property taxes
permissive property tax laws became mandatory
pupil residence important determinant of quantity and quality of education available
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7. Depression-problems with reliance on property taxes evident
early 20th century-need for state support due to growth in rural communities and neighborhoods
Depression-problems with reliance on property taxes evident
period two-early grants and allocations
period three-emergence of foundation program concept
few states recognized and implemented responsibilities
Cubberley - pioneer in state apportionments of funds to local districts and equality of educational opportunity
risks-increased state control and state monies supplant rather than supplement
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8. period four-emergence of foundation program concept
Strayer and Haig—modern school finance theory
began with Educational Finance Inquiry Commission-1923
devised around rich district idea
guarantee quality of educational opportunity
encourage local initiative
features defined by law
constructed around needs and resources of each state
cost of foundation program should include a major part of total cost of public education in that state
uniform property assessment essential
should encourage reorganization of school districts
should be a minimum, not a maximum
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9. period four-refinement of foundation program concept
movement away from levy of statewide property tax
fiscal independence of school districts
problems with change from state property taxation to local property taxation
The Depression-states limited taxing power of school districts
beginning efforts in use of local nonproperty taxes
Cubberley’s emphasis on improvements and reward for effort undercut
Morrison and Undegraff-early part of 20th century emphasized state support for education and district power equalization
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10. period five-power equalization
emphasized in first half of 20th century
state and local districts in partnership to pay for basic program of education
mid-20th century-Mort advocated guaranteed foundation program and encouraged local initiative
open-ended or shared-cost equalization—percentage of state funds higher for poorer districts
equalized percentage matching (EPM)-combines equalization and reward for effort
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11. period six-shift of emphasis and influence
limited progress in equity and adequacy
greater agency influences demanding accountability
more student choice
taxpayer revolt
fears of war and terrorism
natural disasters
shifting economic factors
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12. The Varying State Roles
during 1920’s almost complete responsibility for administering property tax given to local districts and counties
equalization became necessary
problems existed
need for good equalization program
need to provide fiscal independence
need to provide assistance in administering local property taxes
need to expand tax base
need to give local districts greater autonomy in administering property taxes
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13. most common - foundation approach
current programs
most common - foundation approach
modified foundation program-”Robin Hood” or leveling down
and leveling up
leveling up - recapturing money from richer districts for poorer districts
flat grant-oldest and simplest method
combinations of programs exist
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14. State Ability to Support Education
measurement of a state’s ability to support is difficult
ability of states to support education varies greatly
some ways of measuring state taxing ability are no longer useful
most common method now used requires inclusion of income
taxing efforts vary by state
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