Wednesday, June 5, 2013

The Disturbing Inequities of the New Normal | School Finance 101

The Disturbing Inequities of the New Normal | School Finance 101:

The Disturbing Inequities of the New Normal

I wrote a post a while back, providing an overview of the basics of state school finance formulas, reforms and why they matter. I revisit this post having how conducted more extensive analysis of the retreat from school funding equity over the period from 2005 through 2011 (most recent available federal school finance data). Let’s begin with a review of my previous post.
School Funding Formula Basics
Modern state school finance formulas – aid distribution formulas – typically strive (but fail) to achieve two simultaneous objectives: 1) accounting for differences in the costs of achieving equal educational opportunity across schools and districts, and 2) accounting for differences in the ability of local public school districts to cover those costs. Local district ability to raise revenues might be a function of either or both local taxable property wealth and the incomes of local property owners, thus their ability to pay taxes on their properties.
Figure 1 presents a hypothetical example of the distribution of state and local revenue per pupil across school districts, sorted by poverty concentration. The hypothetical relies on the simplified assumption that districts with weaker local revenue raising capacity also tend to be higher in poverty concentration. While that’s not uniformly