ERIC Number: ED384966
Record Type: Non-Journal
Publication Date: 1995-May
Reference Count: N/A
The Outlook for School Revenue in the Next Five Years.
Gold, Steven D.
This paper examines the outlook for school finance over the next 5 years. The environment for increases in real school revenue per pupil during the rest of the 1990s will not be favorable. The rate of economic growth in the next 5 years will not be particularly robust, with capacity expected to increase only about 2.5 percent yearly. This relatively low growth rate reflects the slow increase expected in the labor force and a sluggish increase in productivity. The most significant problem for educational finance is likely to be reductions in federal aid to states. States will respond to decreases in federal aid for social and health programs by trimming increases in state education aid. Other negative factors will be continued strong competition for state tax dollars from corrections and health programs and conservative state tax policy. Legalized gambling is no panacea for hard-pressed state budgets, and property tax prospects are not improving. A dynamic economy will benefit schools in selected states, but the overall economic growth rate is likely to be moderate at best. Some states will shift reliance away from property taxes. Five revenue tables are included. (MLH)
Descriptors: Economic Change, Educational Finance, Elementary Secondary Education, Federal Aid, Financial Problems, Income, Labor Market, Property Taxes, Public Education, State Aid
CPRE, Carriage House at the Eagleton Institute of Politics, Rutgers University, 86 Clifton Avenue, New Brunswick, NJ 08901-1568 ($10 prepaid).
Publication Type: Reports - Evaluative
Education Level: N/A
Sponsor: Office of Educational Research and Improvement (ED), Washington, DC.
Authoring Institution: Consortium for Policy Research in Education, New Brunswick, NJ.