Financing Education in a Climate of Change

Preface    

 

Chapter 1: The Economics of Education

Education as Human Capital

Creation of Wealth and Education

Education: An Important Industry

A Public Sector Responsibility

Stimulates Economic Growth

Economic Benefits of Education

Noneconomic Benefits of Education

Taxation and Education

Cost Quality Relationship to Education

Summary

Assignment Projects

Selected Readings

Endnotes

 

Chapter 2: Financing Education Adequately

Societal Impact on Education Needs

Education Deserves Higher Priority 

The Increasing Costs of Education 

Goals Have Increased

People Want Better Education 

Demographic and Social Changes 

The Consequences of Not Educating People 

Society Suffers the Effects of Poor Education

The Public Demands Improvement

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 3: Financing Education Equitably 

Inequalities in Financing Education 

Equity: An Objective of School Finance Reform 

Equity at the School Level 

Measures of School District Wealth 

Historical Influences on Equity 

The Equalization Principle 

Improving State Equalization Practices 

Foundation Program Variations 

The Impact of Average Daily Attendance on Equity 

Confusion in Current School Finance Practices 

Summary 

Assignment Projects

Selected Readings 

Endnotes 

 

Chapter 4: Patterns for School Finance Systems 

Developing Patterns 

Full State Funding 

District Power Equalization 

Property Reassessment and Local District Revenues 

Equalization of Services 

Emphasis on Weighting Factors 

Principal Types of Weightings 

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 5: Sources of Revenue 

The Taxation System 

Characteristics of a Good Tax System 

Criteria for Evaluating Tax Structure 

Taxes for Education 

Property Tax 

Income Tax 

Sales Tax 

Sumptuary Tax 

Severance Tax 

Potential New Taxes 

Lotteries 

Private Foundations 

School-Business Partnerships 

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chatper 6: Eroding Local Control 

Diminishing Local Control 

Decreasing Rural Influence on Education 

Decreasing Urban Economic Advantages 

School Districts: Basic Administrative Units 

The Administration of Local School Districts 

Local Fiscal Control 

Advantages of Local Control 

Fiscal Independence of School Districts 

Trends in Local Taxation Practices 

Measures of Local Taxpaying Ability 

Local, State, and Federal Tax Responsibility 

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chatper 7: Education: A State Function 

Early Development of State Responsibility 

Development of School Finance Policies 

Developmental Stages of School Finance Theory 

The Varying State Roles 

State Financial Support 

State Ability to Support Education 

Summary  

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 8: Federal Interest in Education

Federalism 

Historical Role of the Federal Government

Department of Education

Constitutional Role 

Federal Expenditures 

Federal Fiscal Advantages and Disadvantages   

Federal Aid in Lieu of Taxes 

Increased Governmental Services 

The Future of Federal Aid to Education   

Summary 

Assignment Projects

Selected Readings 

Endnotes 

 

Chapter 9: The Influence and Climate of the Courts 



Diversity in State Court Rulings

Court Decision Guidelines 

Power of the Courts before 1971 

Serrano v. Priest (1971) 

Consequences of Serrano 

San Antonio Independent School District v. Rodriguez (1973) 

State Court Cases 

Complexities of Judicial Review 

Meeting Court Mandates 

Court Cases, Equity, and Adequacy 

Campaign for Fiscal Equity v. The State of New York (2003) and CRE II (2006)

Principles Established by Court Decisions 

Pressure for Reform 

Finance Studies and Reform Efforts

Factors Limiting School Finance Reform 

California's Proposition 13 

Finance Reform or Tax Reduction 

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 10: Public Funds and Nonpublic Schools 

A Controversial Issue 

Nonpublic School Enrollments 

The Law and Church-State Relations 

Intervention by the Courts 

Educational Choice 

Controversy Not Solved 

Summary 

Assignment Projects 

Selected Readings 

Endnotes

 

Chapter 11: Financing School Facilities 

Early Capital Outlay Programs 

State Support 

Equity in Financing Educational Facilities 

 The Federal Government and Capital Outlays 

Capital-Outlay Finance Plans 

School Bonding Practices 

Impact Fees 

Other Alternatives 

Summary 

Assignment Projects 

Selected Readings 

Endnotes

 

Chapter 12: Administering the School Budget 

Evolution of Budgetary Practices 

The Budget 

Administration of the Budget 

Budgeting at the School Level 

School/District Coordination 

Systems of Budget Administration 

Challenge of Leadership 

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 13: Accounting and Auditing 

The Changing Accounting Environment

Comprehensive Annual Financial Report (CAFR) 

Encumbrance Accounting 

Cost Accounting 

Accrual Accounting 

Receiving and Depositing Funds 

Expending School Funds 

Financial Reports 

Auditing 

Protecting School Funds 

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 14: Business Aspects of the School Community 



 

Increased Safety Hazards 

The Business Office 

Supplies and Equipment 

Purchasing 

Supply Management 

Risk Management 

Insurance 

Transportation 

School Food Services 

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 15: Human Resources and School Finance 

The Expanded Role of Human Resource Administration 

Teacher Compensation

Certification 

Teachers and School Finance 

The Changing Assignments of Teachers 

Administrative and Supervisory Salaries 

Noncertificated Personnel Salaries 

Payroll Policies and Procedures 

Governmental Influence

Summary 

Assignment Projects 

Selected Readings 

Endnotes 

 

Chapter 16: The Road Ahead in School Finance 

The Unpredictable Future of Public School Finance 

Unresolved Issues 

Some Characteristics of Educational Structure 

School Finance Goals 

The Challenge 

 

Endnotes 

Index