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ERIC Number: EJ1082372
Record Type: Journal
Publication Date: 2015
Pages: 18
Abstractor: As Provided
ISSN: ISSN-0098-9495
School Districts' Expenditure Responses to Federal Stimulus Funds
Bourdeaux, Carolyn; Warner, Nicholas
Journal of Education Finance, v41 n1 p30-47 Sum 2015
Between 2009 and 2011, school districts across the country received federal stimulus funds to shore up their budgets during the recession. The hope was that this support would serve as bridge funding during the recession, and that jurisdictions would then replace the federal funds as state and local tax bases grew stronger. However, the research on the intergovernmental grant phenomenon known as the "flypaper effect" has taken some interesting turns which have implications for the allocation of federal stimulus funds during and after periods of recession. Most notable are a series of findings that there are asymmetries in response to the growth and decline of certain types of inter-jurisdictional grants rather than a symmetric response, and further that the type of asymmetry may vary depending on the grant type. The federal stimulus funding for education, while allocated for a common purpose, was distributed through different grant types, which provides a unique opportunity to test for potential differences in flypaper effect given different funding mechanisms. This research examines the impact of the stimulus funds drawing on panel data of Georgia's 180 school districts to examine the impact of these grants. Our findings show that stimulus funds distributed through the traditional formula programs were more likely to flow into instructional salaries and also were more likely to be replaced when the federal funding was withdrawn (an asymmetric response), while the budget stabilization funds were not allocated to instructional salaries and further went into the budget and came out symmetrically.
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Publication Type: Journal Articles; Reports - Research
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A
Identifiers - Location: Georgia
Grant or Contract Numbers: N/A