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School district spending and state aid: why disparities persist

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  • Katharine L. Bradbury

Abstract

Most decisions about the level of local public school spending are made by local school districts. Their choices are conditioned by local resources and the availability of external funds, mostly from state governments. A major purpose of this substantial state aid is to further the goal of equal educational opportunity by helping to make spending more equal in rich and poor districts. ; This article investigates the link between school spending disparities and state school aid by using data on school finances and community attributes to model the determinants of per-pupil operating spending by Massachusetts and Rhode Island school districts. These estimated relationships are used to quantify the impact of recent and newly enacted aid programs on educational expenditures in Massachusetts communities, focusing on their likely effect on spending disparities.

Suggested Citation

  • Katharine L. Bradbury, 1994. "School district spending and state aid: why disparities persist," New England Economic Review, Federal Reserve Bank of Boston, issue Jan, pages 50-68.
    • Handle: RePEc:fip:fedbne:y:1994:i:jan:p:50-68
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    File URL: http://www.bostonfed.org/economic/neer/neer1994/neer194d.pdf
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    Cited by:

    1. Bradbury, Katharine L. & Mayer, Christopher J. & Case, Karl E., 2001. "Property tax limits, local fiscal behavior, and property values: evidence from Massachusetts under Proposition," Journal of Public Economics, Elsevier, vol. 80(2), pages 287-311, May.

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    Keywords

    Education; state finances;

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