IDEAS home Printed from https://ideas.repec.org/a/wly/soecon/v71y2005i3p534-544.html
   My bibliography  Save this article

Unintended Consequence of Centralized Public School Funding in Michigan Education

Author

Listed:
  • Ron Zimmer
  • John T. Jones

Abstract

As part of the movement to create greater spending equity among school districts, states have centralized funding for public education and instituted funding formulas where high‐spending districts are often constrained in their operational expenditures. However, these school districts often maintain local discretion over capital expenditures financed by the sale of bonds. In this study, we find that Michigan's high‐spending school districts have a greater probability of issuing bonds after centralizing public school funding, indicating that debt financing of capital expenditures may have become a mechanism to allow these school districts to circumvent the policy's intent for greater spending equity.

Suggested Citation

  • Ron Zimmer & John T. Jones, 2005. "Unintended Consequence of Centralized Public School Funding in Michigan Education," Southern Economic Journal, John Wiley & Sons, vol. 71(3), pages 534-544, January.
    • Handle: RePEc:wly:soecon:v:71:y:2005:i:3:p:534-544
    DOI: 10.1002/j.2325-8012.2005.tb00656.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/j.2325-8012.2005.tb00656.x
    Download Restriction: no
    File URL: https://libkey.io/10.1002/j.2325-8012.2005.tb00656.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Bergstrom, Theodore C & Rubinfeld, Daniel L & Shapiro, Perry, 1982. "Micro-Based Estimates of Demand Functions for Local School Expenditures," Econometrica, Econometric Society, vol. 50(5), pages 1183-1205, September.
    2. James M. Poterba, 1997. "Demographic structure and the political economy of public education," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(1), pages 48-66.
    3. Thomas J. Nechyba, 2003. "Centralization, Fiscal Federalism, and Private School Attendance," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 44(1), pages 179-204, February.
    4. Fischel, William A., 1989. "Did Serrano Cause Proposition 13?," National Tax Journal, National Tax Association;National Tax Journal, vol. 42(4), pages 465-473, December.
    5. Ladd, Helen F. & Murray, Sheila E., 2001. "Intergenerational conflict reconsidered: county demographic structure and the demand for public education," Economics of Education Review, Elsevier, vol. 20(4), pages 343-357, August.
    6. Jones, John T. & W. Zimmer, Ron, 2001. "Examining the impact of capital on academic achievement," Economics of Education Review, Elsevier, vol. 20(6), pages 577-588, December.
    7. Murray, Sheila E & Evans, William N & Schwab, Robert M, 1998. "Education-Finance Reform and the Distribution of Education Resources," American Economic Review, American Economic Association, vol. 88(4), pages 789-812, September.
    8. Fischel, William A, 1992. "Property Taxation and the Tiebout Model: Evidence for the Benefit View from Zoning and Voting," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 171-177, March.
    9. Fischel, William A., 1989. "Did Serrano Cause Proposition 13?," National Tax Journal, National Tax Association, vol. 42(4), pages 465-73, December.
    10. Paul N. Courant & Susanna Loeb, 1997. "Centralization of school finance in Michigan," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(1), pages 114-136.
    11. Downes, Thomas A. & Schoeman, David, 1998. "School Finance Reform and Private School Enrollment: Evidence from California," Journal of Urban Economics, Elsevier, vol. 43(3), pages 418-443, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Michah W. Rothbart & David J. Schwegman & Iuliia Shybalkina, 2022. "The impact of pork‐barrel capital funding in schools: Evidence from participatory budgeting in NYC," Public Budgeting & Finance, Wiley Blackwell, vol. 42(2), pages 148-170, June.
    2. Michael Heise, 2023. "The distribution of in‐person public K‐12 education in the time of COVID: An empirical perspective," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 20(2), pages 305-338, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eric J. Brunner & Jon Sonstelie, 2006. "California's School Finance Reform: An Experiment in Fiscal Federalism," Working papers 2006-09, University of Connecticut, Department of Economics.
    2. Thomas A. Downes, 2002. "Do state governments matter?: a review of the evidence on the impact on educational outcomes of the changing role of the states in the financing of public education," Conference Series ; [Proceedings], Federal Reserve Bank of Boston, vol. 47(Jun), pages 143-180.
    3. Coen-Pirani, Daniele, 2011. "Immigration and spending on public education: California, 1970–2000," Journal of Public Economics, Elsevier, vol. 95(11), pages 1386-1396.
    4. Brunner, Eric & Balsdon, Ed, 2004. "Intergenerational conflict and the political economy of school spending," Journal of Urban Economics, Elsevier, vol. 56(2), pages 369-388, September.
    5. Katherine Baicker & Nora Gordon, 2004. "The Effect of Mandated State Education Spending on Total Local Resources (new title: The effect of state education finance reform on total local resources)," CESifo Working Paper Series 1275, CESifo.
    6. Arvate, Paulo Roberto & Zoghbi, Ana Carolina Pereira, 2010. "Intergenerational conflict and public education expenditure when there is co-residence between the elderly and young," Economics of Education Review, Elsevier, vol. 29(6), pages 1165-1175, December.
    7. Fischel, William A., 2001. "Homevoters, Municipal Corporate Governance, and the Benefit View of the Property Tax," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 157-74, March.
    8. Fernández, Raquel & Rogerson, Richard, 1999. "Education finance reform and investment in human capital: lessons from California," Journal of Public Economics, Elsevier, vol. 74(3), pages 327-350, December.
    9. Joydeep Roy, 2011. "Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan," Education Finance and Policy, MIT Press, vol. 6(2), pages 137-167, April.
    10. Dayton M. Lambert & Christopher D. Clark & Michael D. Wilcox & William M. Park, 2009. "Public Education Financing Trends and the Gray Peril Hypothesis," Growth and Change, Wiley Blackwell, vol. 40(4), pages 619-648, December.
    11. Olugbenga Ajilore, 2009. "Elderly Ethnic Fragmentation and Support for Local Public Education," Public Finance Review, , vol. 37(2), pages 217-230, March.
    12. Hilber, Christian A.L. & Mayer, Christopher, 2009. "Why do households without children support local public schools? Linking house price capitalization to school spending," Journal of Urban Economics, Elsevier, vol. 65(1), pages 74-90, January.
    13. Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
    14. Fernández, Raquel, 2001. "Sorting, Education and Inequality," CEPR Discussion Papers 3020, C.E.P.R. Discussion Papers.
    15. Katherine Baicker & Nora Gordon, 2004. "The Effect of Mandated State Education Spending on Total Local Resources," NBER Working Papers 10701, National Bureau of Economic Research, Inc.
    16. Loeb, Susanna, 2001. "Estimating the effects of school finance reform: a framework for a federalist system," Journal of Public Economics, Elsevier, vol. 80(2), pages 225-247, May.
    17. Jean-Luc Migue, 1992. "Trade Barriers in the Theory of Instrument Choice," Cato Journal, Cato Journal, Cato Institute, vol. 12(2), pages 425-441, Fall.
    18. Richard Buddin & Brian Gill & Ron Zimmer, 2004. "Examining Federal Impact Aid's Reimbursement for Local School Districts," Contemporary Economic Policy, Western Economic Association International, vol. 22(4), pages 534-543, October.
    19. Maria da Conceição Sampaio e Sousa, 2011. "Locally Provided Public Schooling in Brazilian Municipalities," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 12(3), pages 427-444.
    20. Caroline Minter Hoxby, 1996. "Are Efficiency and Equity in School Finance Substitutes or Complements?," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 51-72, Fall.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:soecon:v:71:y:2005:i:3:p:534-544. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2325-8012 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.