Publication: Financing Schools

• Behrman, Richard E.

This issue of the journal focuses on financing schools, a
major civic endeavor which consumes one-third of all state
and one-half of all local tax revenues. School boards have
the primary responsibility for providing effective and
efficient schools. However, the states are ultimately
responsible for ensuring that schools are adequate, leading
states to provide much of the school budget and to regulate
schools in multiple and complex ways. The federal role in
funding and regulation is relatively minor, with the
exception of special education regulations.

This issue highlights several challenges common to most
states. First, little is known about the link between
school funding and student outcomes, making it extremely
difficult to determine an appropriate level of funding for
schools. Second, in many states the tax burden of
supporting schools is poorly distributed. Often, low-wealth
communities pay disproportionately high taxes without
achieving higher per-pupil funding. Third, school buildings
are increasingly overcrowded, run-down, and even unsafe.
Finally, many states are creating new accountability
mechanisms (such as fiscal incentives and sanctions) and
linking school funding to parental choice (through such
options as charter schools, private school vouchers, and
contracts with private education agencies). These options
have an intuitive and logical appeal, but their impact is
not yet known.

The articles presented here summarize knowledge and
experience in selected areas that we believe are relevant
to improving public policies in the United States which
have an impact on financing schools. We hope the
information and analyses these articles contain will
further the understanding of important issues and, thus,
contribute to reasonable changes in policies which will
benefit children.