Chapter Outlines:

(Blue text denotes legislation or court cases)

Chapter 13: Public School Finance
I. 10th Amendment: Gives control to the states for funding public education
A. State and local tax account for 90% of educational expenditures: specifically
property taxes
B. Progressive Tax: tax rate increases as the base increases
C. Regressive Tax: tax rate decreases when the base increases
D. Proportional Tax: the rate remains the same regardless of the wealth or
income
II. Tax Rate
A. tax rates are generally determined by the needs of the district; however,
legislatures have the ultimate power to levy tax rates
B. Legislatures can delegate (with restrictions) power to the district to levy tax
rates
III. Equity Funding in Education
A. Equity: per pupil the expenditures are equally distributed throughout a local
school district
B. Power equalization formulas are occasionally put into place to ensure that
equal educational opportunities are provided for all students regardless of
socioeconomic status
C. Equity occurs when all districts in a state have equal opportunity up to a
prescribed level
IV. Equity and Adequacy of Funding for Public Schools
A. Adequacy focuses on a minimal level of funding needed for every school to
teach its students, thus subscribing to an education that is adequate rather
than excellent.
B. Adequacy studies generate data to increase state aid to local districts
V. Legal Challenges to School Funding
A. Legal challenges mostly settled in state courts
B. Many challenges based on 14th Amendment equal protection provisions
C. State courts generally rule that when property taxes alone are not enough to
finance the district, state institutions need to have a funding available (state
aid formula)
VI. Landmark Rodriguez Case - San Antonio Independent School District v. Rodriguez
A. Mexican American parents sued school district on behalf of minority children
throughout the state who were poor and resided in community with low
property taxes.
B. Three-judge district court ruled school unconstitutional under equal
protection clause of the 14th Amendment.
C. State appealed.
D. Supreme Court ruled it constitutional. Poor citizens in the community were
not disadvantaged as a class.
E. Texas education funding did not interfere with a right of education.
F. Litigation following Rodriguez
1. The Rodriguez decision moved litigation away from the federal courts.
2. State Courts
a) became the decision makers based on state constitutions equal
rights not the 14th Amendment.
b) addressed educational quality (teacher quality, instructional
materials, etc.)
c) States define equality different, therefore, state court
decisions are inconsistent.
d) Half support plaintiffs and other half support defending the
state
G. Post-Rodriguez Cases
1. Williams v. California
a) education quality that affects educational outcomes of poor
students
(1) Does CA provide all students the basic resources to
learn (qualified teachers, sufficient instructional
materials, adequate facilities)?
(2) Should all students have a fundamental right to an equal
education?
b) Williams claimed CA failed both measures. Said CA should be
responsible for providing both measures.
c) CA entered a settlement.
(1) provide sufficient number of textbooks
(2) buildings are to be safe and in good condition
(3) teachers trained to teach students in their class
(4) new standards created for all schools
(5) Low performing schools would be visited by county
officials to ensure the appropriate resources are
available.
2. CFE v. State of New York (landmark fiscal equality case)
a) Court of Appeals ruled NYC students were not receiving
mandated opportunity for a sound education
(1) Governor and state legislature
(a) were to ensure schools necessary resources
(b) determine costs of a sound education
(c) enact appropriate funding and accountability
forms
b) Appellate Court ruled NYC was providing opportunities for
sound education
3. Montoy v. State of Kansas
a) Court ruled the state failed to distribute resources equitably
among students
(1) found a 300% funding disparity between poor and
wealthy districts
(2) NCLB mandated schools to eliminate achievement gaps
4. Lewis E. v. Spagnolo
a) Did the Illinois Public School Funding System violate students
rights under the state constitution and US constitution?
(1) Plaintiff - State constitution granted right to a
minimally adequate education
(2) Court ruled against plaintiff. Education quality is the
responsibility of the state legislature.
VII. Issues with education quality and school funding difficult.
A. Students require different levels of resources based on background,
preparation and needs.
B. Cost of providing educational needs varies from state to state because of
location and demographics.
C. There is no universal quality education model.