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50 Years of ERIC
50 Years of ERIC
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ERIC Number: EJ931755
Record Type: Journal
Publication Date: 2011
Pages: 31
Abstractor: As Provided
Reference Count: 22
ISSN: ISSN-1557-3060
Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan
Roy, Joydeep
Education Finance and Policy, v6 n2 p137-167 Spr 2011
Michigan radically altered its school finance system in 1994. The new plan, called Proposal A, significantly increased state aid to the lowest-spending school districts and limited future increases in spending in the highest-spending ones, abolishing local discretion over school spending. I investigate the impact of Proposal A on the distribution of resources and educational outcomes. I analyze the differential effects on the lowest-spending and the highest-spending districts, highlighting the role of local discretion, which has so far been neglected in the literature. I also provide important evidence on the effect of spending on academic performance. Proposal A was quite successful in reducing interdistrict spending disparities. There was also a significant positive effect on student performance in the lowest-spending districts as measured in state tests. However, the constraints on future increases in spending may have had a negative effect on student performance in the highest-spending districts. (Contains 10 tables, 4 figures, and 40 footnotes.)
MIT Press. 55 Hayward Street, Cambridge, MA 02142. Tel: 617-253-2889; Fax: 617-253-1709; e-mail:; Web site:
Publication Type: Journal Articles; Reports - Evaluative
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers: Michigan; Impact Evaluation