Chapter13:PublicSchoolFinance

INTRODUCTION(p.330)

TAXATIONFORPUBLICSCHOOLS(pp.330331)
I.
Movetowardsincreasedstatecontrolofeducationfunding
A. Salestaxesandincometaxesareprimarysourcesforstatefunding
B. Propertytaxisthemainsourceforlocalfunding
C. Nototalagreementontheuseofpropertytaxmoney.Criticsofpropertytaxes
thinkthestateshouldsupporteducationmorecitingtheTenthAmendment
D. 3typesoftaxes:progressive,regressive,andproportional
1. Progressivelargerpercentageistakenfortaxesasincomeincreases
2. Regressivehigherincomepayingsmallerpercentagethanlowerincome
3. Proportionalflattax,sameacrosstheboard
TAXRATE(p.331)
I.
NeededRevenueforSchoolDistricts
A. Districtsmaylevytaxestogeneratefunds
1. Revenueprojectionsmustberealisticandbasedondefensiblegrounds
2. Districtsmaynotusetheirtaxingauthoritytocreatesurplusfunds
ll.
CourtCase
B.
Pironnev.CityofBoston
1.Thestatecourtsaidlocalschooldistrictshadnoinherentpowertolevytaxes
2.Legislationhasthepowertogiveschooldistrictstaxingauthorityifitchooses
a.Stateconstitutionaltaxlimitationsmustbemetinthiscase
b.Clearlimitationsareplacedifthepowerisdelegatedtothedistrict
EQUITYFUNDINGINEDUCATION(pp.331332)
I.
EquityAmongstSchools
A. Expendituresareequallydistributedthroughoutaschooldistrict
B. Formulasareputintoplacetocompensateforwealthyandlesswealthydistricts
1. Thetheorybehindthisistoprovideallstudentswithequaleducation
opportunities
2. Equallearningopportunitiesoccurwhenallschooldistrictshavethesame
accesstoresources
LEGALCHALLENGESTOSCHOOLFUNDING(pp.332334)
I.

Thechallengeshavecenteredaroundclaimsthattaxsystemsdesignedtogenerate
schoolrevenueareunfairanddonotapplyequallytoalltaxpayers.
A. Moststateshaveadoptedminimumfoundationorbasiceducationwithaverage
dailyattendanceformulasthatdistributefundsonaperpupilbasisbasedonthe
districtswealthanditsabilitytopay.
B. Mostofthelegalchallengesregardingfundingareaddressedthroughstate
courts.
II.
Serranov.Priest


A.Thequalityofachildseducationshouldnotbeafunctionofthewealthofthe
districtinwhichthestudentresides.
III.
Robinsonv.Cahill
AFundingofpublicschoolsthatreliedheavilyonlocalpropertytaxesviolatedthe
stateconstitutionaswellasthe14thAmendment

BThelegislaturepassedthepublicEducationActof1975todevelopasystemof
freepublicschoolsforallchildrennomattertheirsocioeconomicstatusor
geographicallocation
THELANDMARK
RODRIGUEZ
CASE(p.334)
I.
SanAntonioIndependentSchoolDistrictv.Rodriguez
A. MexicanAmericanParentsinEdgewooDSchoolDistrictfiledaclassaction
equitysuitonbehalfofminoritychildrenthroughoutthestatewhowerepoorand
livedinareaswithlowpropertytaxes.
B. AthreejudgedistrictcourtheldthattheTexasfinancesystemwas
unconstitutionalundertheFourteenthAmendment.
C. TheU.S.SupremeCourtsaidthattheirisnolossiffundamentalrightsince
educationitselfisnotprotectedbytheU.S.Constitution.
D. Afundingsystembasedonlocalpropertytaxesthatprovidesaminimum
educationtoallstudentsinunconstitutional.
LITIGATIONFOLLOWING
RODRIQUEZ
(p.334)
I.

Litigationwasmovedfromfederalcourtstostatecourts
A.Thestatesalsoaddressedissuesconcerningteacherqualityandappropriate
educationalmaterials.
B.Differentstatesdefinedequalitydifferently
C.Litigationhasoccurredin49statesregardingpublicschoolfinances.
POST
RODRIGUEZ
CASES(pp.334336)
I.

Williamsv.California
A.Addressestheissueofeducationalqualitythataffectedtheeducational
outcomesofpoorstudents.
B.Plaintiffurgedthestatetocreatestandardsforbasiceducationalmaterialsalong
withanaccountabilitysystemthatschoolsmustmeet.
C.Stateagreedonasettlementandformallyacknowledgeditsresponsibility
providingequalandqualityeducationtoallstudents.

II.
CFEv.StateofNewYork
A. CourtruledthatNYCstudentswerenotreceivingtheconstitutionallymandated
opportunityforasoundbasiceducation.
B. Thegovernorandlegislaturewereordertoenactappropriatefundingand
accountabilityreforms.
III.
Montoyv.StateofKansas
A. CourtfoundthatthestateofKansasfailedtodistributeresourcesequitably
amongchildrenwhoareequallyentitledtoasuitableeducation.
B.Therewasa300percentfundingdisparitybetweenpoorandwealthydistricts.

IV.
LewisE.vSpagnolo
A. Contrastingcasethecourtruledthatissuesrelatingtothequalityofeducation
aresolelytheresponsibilityofthelegislaturetoanswer.
V. Educationalqualityandfunding
A. Studentsrequiredifferentlevelsofresourcesbasedonbackground,preparation,
andotherfactors.
B.Costofprovidingeducationalservicesvariesfromstatetostatebasedon
locationanddemographics.
C.Thereisnouniversalqualityeducationmodelthathasdistributiveapplicationsfor
schooldistrictsthroughoutthenation.
EQUITYANDADEQUACYOFFUNDINGFORPUBLICSCHOOLS
I.
Equityvs.Adequacy
A. Statesrecentfocusisonadequacyoffundingforpubliceducation
1. Traditionally,focushasbeenonequity
a) Equitydenotesfairnesssuggestallcommunitiesbetaxedat
similarratesandhavesimilaramountsofrevenueperstudent
b) Thisdoesnotoccurinmoststates
2. Adequacyfocusesonminimalleveloffundingneededforeveryschoolto
teachitsstudents
a) Adequacystudiesareusedbylawmakerstoimprovefundingand
overallqualityofschooldistricts
B. DeRolphv.StateofOhio
1. Over500schoolssuedthestateclaimingtheaidformulawastooreliant
onpropertytaxes,andalloweddistrictswithhigherpropertyvaluationsto
morereadilymeettheneedsofstudents
2. OhioSupremeCourtruledthateducationwasafundamentalrightandthe
legislaturemustprovideamoreequitablemeansoffinancingschools
C. Bradfordv.Maryland
1. CourtsruledthattheMarylandlegislaturehadtoappropriateextrafunds
tolowwealthdistrictswithhighneedsstudents
2. Marylandcreatedanewschoolfinancesystemthatincreasedfundingby
$1.3millionannually,withalargerportiontargetedtolowwealthdistricts
D. EdgewoodIndependentSchooletal.v.Kirby
1. TexasSupremeCourtruledtheTexasschoolfinancesystem
unconstitutional
a) Violatedtheequalprotectionclausebynottreatinggroupsequally
2. Legislatureincreasedfundingforschools
a) Lowwealthschoolssuedagain,sayingthebasicstructureof
schoolfundinghadnotchangedcourtsagreed
3. Legislaturechangedtheaidformula
a) Wealthyschoolssuedthelegislature,sayingchangestoproperty
taxlevieshadtobevoterapprovedcourtsagreed

4. Legislaturesettledonabilldesignedtocreateamoreequitablesystem
aswellasastatewidesystemofaccountabilitybasedonstudent
performance
a) SupremeCourtruledthelawconstitutional,butwarnedthat
facilitieswerestillfinancedbythedistrictwithlimitedstate
support,whichcouldresultinanunconstitutionalsystem
(1) Legislaturerespondedandappropriatedmorefundsto
facilities