ERIC Number: ED195017
Record Type: Non-Journal
Publication Date: 1979-May
Reference Count: N/A
The Use of Personal Income Data to Modify the Taxable Capacity of School Districts for the Apportionment of School Aid in New York State.
Goettel, Robert J.
The purpose of this paper is to examine the implications of using personal income data in the New York state aid formula and to suggest ways in which such data could address specific inequities in the current formula. The first section of the paper is a brief review and evaluation of the Division of the Budget's study (in which estimates were made prior to the availability of 1977 state tax return data) of the effects of shifting to an income per pupil measure of fiscal capacity. Section 2 is a review of studies in which personal income and property wealth characteristics of New York school districts have been compared, a summary of the use of personal income measures in other states, and an initial look at possible distributional effects of using the income per pupil data derived from 1977 state income tax returns. The final section is an evaluation of the alternative income measures available, including recommendations for state aid policy. The two competing approaches to measuring fiscal capacity are the taxable capacity (or tax model) approach and the economic indicators (or income flow) approach. It is recommended that New York should rely on the taxable capacity approach. (Author/IRT)
Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: N/A
Identifiers - Location: New York