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Rural Education and the 1990 Kentucky Educational Reform Act: Funding, Implementation and Research Issues

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  • Goetz, Stephan J.
  • Debertin, David L.

Abstract

After discussing basic principles of school finance, and comparing selected education-related variables in southeastern states, this paper examines how schools districts are financed in Kentucky. Emphasis is given to issues of funding adequacy, efficiency and equity, and the lawsuit culminating in the 1990 Educational Reform Act. Changes in the formulae by which state school funds are distribu­ted are discussed in detail. Estimated per pupil school revenue data for the 1989-90 and 1990-91 years are analyzed to determine how funding inequality changed. In the aggregate, per pupil revenues across county school districts (i) have risen without exception; (ii) have become less variable as measured by a reduced standard deviation and; (iii) become less dependent on locally raised taxes. Nevertheless, funding differences among and within metro and non-metro areas remain, as demonstrated by a variety of mea­sures, including coefficients of variation, relative mean deviation, Gini coefficients and Theil indices. Most importantly, perhaps, increases in funds have been directed primarily towards Eastern Ken­tucky, where nearly two-thirds of all pupils live under "economically deprived" conditions. The reason for this result is obvious when the new funding formula is examined.

Suggested Citation

  • Goetz, Stephan J. & Debertin, David L., 1991. "Rural Education and the 1990 Kentucky Educational Reform Act: Funding, Implementation and Research Issues," Agricultural Economics Research Reports 159490, University of Kentucky, Department of Agricultural Economics.
    • Handle: RePEc:ags:ukyaer:159490
    DOI: 10.22004/ag.econ.159490
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    References listed on IDEAS

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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    2. Hady, Thomas F. & Ross, Peggy J., 1990. "An Update: The Diverse Social and Economic Structure of Nonmetropolitan America," Staff Reports 278329, United States Department of Agriculture, Economic Research Service.
    3. Feldstein, Martin S, 1975. "Wealth Neutrality and Local Choice in Public Education," American Economic Review, American Economic Association, vol. 65(1), pages 75-89, March.
    4. Linda Datcher-Loury, 1989. "Family Background and School Achievement among Low Income Blacks," Journal of Human Resources, University of Wisconsin Press, vol. 24(3), pages 528-544.
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    More about this item

    Keywords

    Community/Rural/Urban Development; Labor and Human Capital;

    JEL classification:

    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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