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School Finance Reform Case Study

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IntroductionAftertaking a back seat to education program reform during the
1980s, school finance has returned as a highly visible issue. With therecent, sweeping state supreme court decisions overturning schoolfinance stnictures in New Jersey, Texas, and Kentucky, and activeorplanned cases in 16 additional states, school finance litigation, fiscalinequities, and school finance reform have rebounded to high placesonstate education policy agendas. This policy white paper discusses thechanging contours of school finance through the 1`./70s and 1980s, and outlines the key school finance issues for the 1990s.
I. School Financein the 1970s and1980sSchoolfinance inequities derive from the way states finance public elementary and secondary schools. …show more content…
Except for California, localproperty taxes account for significant portions of education revenues inthe Far West Laboratory region. The pattern ü Arizona is quite close tothe national average, with local revenuesprimarily property taxesmaking up 43 percent of the total. Local revenues constitute the bulk (56percent) of education revenues in Nevada and 40 percent in Utah.
Table 1Sources of Public School Revenues, 1986-87,in Arizona, California, Nevada, and Utah
StateNationalFederalStateLocaland otherAverage6.4%49.8%43.9%Arizona9.048.342.7;California7.169.523.5,Nevada4.439.556.i)Utah6.154.439 6Heavy reliance on local property taxes produces fiscal inequities because"the property tax base is not distributed equally across school districts. Asa result, the property tax base is large in some districts and small inothers. Thus, at a given tax rate, wealthy districts raise more money perpupil than districts where property values are lower. In many states, thisunequal ability to raise local revenues is substantial, varying by a factor ofup to ten to one.
' Source: National Center for Educational Statistics, Digest of EducationalStatistics: 1989: Washington, D.C.: US. Department of Education,

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