Discuss the demographic changes in schools in the district in which you live or work. What are the challenges these changes pose to the provision of an adequate system of education?
State finance systems should be designed to provide all children an equal opportunity to achieve. While revenues for education have increased, so have responsibilities, number of students and costs of operation. Approximately 55 million students are enrolled in more than 98,000 public school facilities. Approximately 3.6 million teachers are employed in the system, and that number is expected to climb. Enrollment has increased over time and continues to show increases.
Growth rates in students enrolled, as well as teachers and other staff employed by schools, have had a great impact on education finance. Increases in spending are related to a variety of factors, including changing enrollments, programs and services provided, changing rates of inflation, and inequities in quantity and quality of services. Increases in spending are related to a variety of factors, including changing enrollments, programs and services provided, changing rates of inflation and inequities in quantity and quality of services. Education should be financed equitably, but this cannot be done with complete equality because of the many differences in the abilities and needs of students and districts.
Perspective
Equity in school finance refers to fairness in expenditures (revenues) per pupil and fairness in the treatment of taxpayers. Fairness is more important in financing education than evenness or sameness, because students have wide differences in their abilities, needs, and educational desires. School finance reforms typically emphasize equity of educational input or opportunity; it is impossible to accurately measure equity of output or outcomes.
Even though real property taxes are usually paid at the same tax rate in a given district, they are not always equitable, because of different rates of assessment as compared to market values, different degrees of ownership of the property being taxed, and differences in the income or the wealth of taxpayers – even though their property taxes may be relatively similar. Income and wealth have some advantages over property assessments for use in formulas for determining the fiscal capacity of school districts.
Taxes are classified into three general types: proportional (the same percentage of income spent for taxes for all levels of income), progressive (a higher percent of income spent for taxes from higher income individuals), and regressive (a lower percent of income spent for taxes from higher income individuals). It is generally agreed that reasonable progressive taxes are the most equitable and regressive taxes are the least equitable.
Baker & Green, “Conceptions of Equity and Adequacy in School Finance,” Handbook, Ch. 14.
Leachman, Albares, Masterson, & Wallace. “Most States Have Cut School Funding, and Some Continue Cutting.” Center on Budget and Policy Priorities. 1/25/16. Links to an external site.
Downes & Stiefel, “Measuring Equity and Adequacy in School Finance,” Handbook, Ch. 15.
Is School Funding Fair? A National Report Card Sixth Links to an external site.Edition (January 2017)Links to an external site.
Downes & Stiefel, “Measuring Equity and Adequacy in School Finance,” Handbook, Ch. 15.
Is School Funding Fair? A National Report Card Sixth Links to an external site.Edition (January 2017)Links to an external site.
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