ERIC Number: ED373415
Record Type: RIE
Publication Date: 1993
Reference Count: N/A
Financial Flexibility in North Carolina Schools.
Suarez, Tanya M.; Polen, Deborah A.
This paper explores educational financial flexibility with a focus on the specific issues surrounding local flexibility in North Carolina school districts. Strategies that states have used to increase local financial flexibility include waivers, reduction of budget categories, block grants, and school-based budgeting. The North Carolina system of school finance is distinctive because state statutes (School Machinery Act of 1933 and the Basic Education Program Act of 1985) require the state to provide the instructional expenses for current operations of the public school system. Local school districts have argued that the school system that has evolved from these statutes constrains actions. The most common recommendations made to increase flexibility at the local level involve reducing the number of line items and/or using reversions of unspent funds. Using personnel funds to achieve flexibility also presents problems. Points to consider when developing strategies to increase local finance flexibility include: (1) Policies must support the state's constitutional responsibility for school finance; (2) in order to judge the flexibility of policies, the purpose to be served must be specified; (3) any plan for local flexibility must accommodate important state interests; (4) since waivers provide limited flexibility, analyzing and changing restrictive regulations may be a more effective strategy for achieving flexibility; and (5) proposed strategies for increasing local financial flexibility should be analyzed for negative and positive consequences. Contains 28 references. (Author/LMI)
Publication Type: Reports - General
Education Level: N/A
Sponsor: North Carolina State Board of Education, Raleigh.
Authoring Institution: North Carolina Educational Policy Research Center, Chapel Hill.
Identifiers: North Carolina