This brief argues that charter school programs can have direct fiscal impacts on school districts for two reasons. First, operating two systems of public schools under separate governance arrangements can create excess costs. Second, charter school financing policies can distribute resources to or away from districts. Using the city school…

We consider issues of equality and efficiency in two different school funding systems--a state-level system in Michigan and a foundation system in Ohio. Unlike Ohio, the Michigan system restricts districts from generating property or income tax revenue to fund operating expenditures. In both states, districts fund capital expenditures with local…

I investigate a possible unintended consequence of Proposition 2½ override behavior--that it led to increased segregation in school districts in Massachusetts. This can occur because richer, low-minority towns tend to have more successful override votes that attract similar households with relatively high demands for public services who can afford…

New York's School Tax Relief Program, STAR, provides state-funded property tax relief for homeowners. Like a matching grant, STAR changes the price of education, thereby altering the incentives of voters and school officials and leading to unintended consequences. Using data for New York State school districts before and after STAR was…

The Great Recession led to marked declines in state revenue. In this paper we investigate whether (and how) local school districts modified their funding and taxing decisions in response to state aid declines in the post-recession period. Our results reveal school districts responded to state aid cuts in the post-recession period by countering…

This paper examines voluntary contributions to public education via charitable school foundations, booster clubs, parent teacher associations, and parent teacher organizations. We use panel data on school-supporting charities with national coverage from 1995 to 2010, which we geocode and match to school districts. We document the meteoric rise of…

We examine changes in the use of nontax revenues for education finance from 1991 to 2010. Beyond the summary of usage over time, we ask whether nontraditional revenues like fees accentuate or mitigate the impact of downturns. More generally, we examine the extent to which school districts have responded to fiscal pressures by turning to nontax…

This is the first study to directly examine the relationship between tax increment financing (TIF) and education expenditures, using the state of Iowa as a case study. I find that greater use of TIF is associated with reduced education expenditures. I also find little evidence to support the commonly held proposition that school spending increases…

Federal and state governments in the United States make extensive use of student poverty rates in compensatory aid programs like Title I. Unfortunately, the measures of student poverty that drive funding allocations under such programs are biased because they fail to reflect geographic differences in the cost of living. In this study, we construct…

Several states and the federal government distribute aid for special education programs based primarily on total district enrollment and a fixed aid amount per student, a method called "census funding." In this policy brief, we address three questions to help policy makers, educators, and researchers better understand census-funding…

Policy briefs written by academics--the kind typically published in "Education Finance and Policy"--should be a crucial source of information for policy makers. Yet too frequently these briefs fail to garner the consideration they deserve. Their authors are too focused on the potential objections of their fellow academics, who are…

In the face of school crowding and fears about inequality-inducing summer learning loss, many schools have started to adopt multitrack year-round school calendars, which keep the same number of school days, but spread them more evenly across the calendar year. This change allows schools to support a larger student population by rotating which…

It has been a busy time for the Association of Education Finance and Policy (AEFP). Over the past few years the association has acquired a new name, a new journal, and many new members. The 2012 annual conference, convened in Boston last March, proved to be the largest conference in the association's thirty-seven-year history, with 556 members in…

Research based on randomized experiments (along with high-quality quasi-experiments) has gained traction in education circles in recent years. There is little doubt this has been driven in large part by the shift in research funding strategy by the Department of Education's Institute of Education Sciences under Grover Whitehurst's lead, described…

We propose an efficiency-based mechanism for state funding of public colleges and universities using data envelopment analysis. We describe the philosophy and the mathematics that underlie the approach and apply\break the proposed model to data from 362 U.S. public four-year colleges and universities. The model provides incentives to institution…