ERIC Number: ED457542
Record Type: Non-Journal
Publication Date: 2001-Feb
Reference Count: N/A
The Regressive Effect of STAR.
New York State's School Tax Relief Aid (STAR) heavily favors wealthier districts, partially reversing equalizing effects that state aid is designed to have. Normally state school aid helps bring less wealthy school districts closer to the standard of wealthier districts. It increases and makes up the lost revenue from taxpayers in the state as a whole. Increasing the property tax exemption reduces more from the burden of wealthier taxpayers than from less wealthy taxpayers, especially those in big cities. The third and fourth years are projected from previous trends, since the study was written halfway through the third year. Combined Wealth Ratio (CWR) and Operating Aid are the two important variables compared. CWR is designed so that the average is 1.0, with most schools varying from 0.3 to 3.0. Operating Aid is the primary form of state aid to school districts and is highly negatively correlated (-62.51 percent) with CWR. Wealthier districts receive more Operating Aid than less wealthy districts. The correlation between STAR and CWR is positive (12.43 percent in 1999). The districts were grouped by CWR into five equal-sized quintiles to determine the average levels of wealth and aid for each quintile, with each quintile having approximately the same number of students. The five large cities including New York City were examined separately. Data for this study were provided by the New York Office of Real Property Services and by the Department of Education. (RKJ)
Descriptors: Educational Equity (Finance), Educational Finance, Elementary Secondary Education, Finance Reform, Financial Policy, Public Schools, School District Spending, School Taxes, State Aid
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Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: Educational Priorities Panel, New York, NY.
Identifiers - Location: New York