ERIC Number: EJ918593
Record Type: Journal
Publication Date: 2009-Mar
Reference Count: 0
Are School Districts Immune to a Weak Economy? Don't Believe It!
School Business Affairs, v75 n3 p15-16 Mar 2009
Why should school districts worry about today's down economy? After all, the vast majority of their income comes from state legislatures and local property taxes, with some additional funding from the federal government. This funding is unaffected by downturns in sales, the stock market, and other basic economic indicators. School business officials should not buy into this misconception. While the effects of a bad economy may not be as drastic for public entities, school boards are adversely affected by a weak economy and should plan for such circumstances. Many aspects of a down economy affect school districts. In this article, the author discusses a few areas that can change a district's finances, which include: (1) state legislative cuts; (2) property devaluation; (3) student population; (4) access to credit; (5) public bonds; and (6) tax rollback concerns. He concludes that school business officials must be cognizant of these risks and develop comprehensive strategies to minimize the negative financial effect on their districts during hard economic times.
Descriptors: Taxes, Educational Finance, School Districts, School Business Officials, Income, Economic Impact, State Legislation, Budgeting, Enrollment Trends, Credit (Finance), Risk Management
Association of School Business Officials International (ASBO). 11401 North Shore Drive, Reston, VA 20190. Tel: 866-682-2729; Fax: 703-478-0205; e-mail: email@example.com; Web site: http://www.asbointl.org
Publication Type: Journal Articles; Reports - Descriptive
Education Level: N/A
Authoring Institution: N/A