- Christopher A. Candelaria
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Christopher A. Candelaria
This study investigates how individual states raise revenue to pay for elementary-secondary education spending after a school finance reform (SFR). We consider 24 states that implemented SFRs between 1989 and 2005. Using a synthetic control approach, we identify six case-study states (Arkansas, Kansas, Maryland, Michigan, New Hampshire, and Vermont) that increased and sustained education expenditures after reform. We then searched for legislative statutes that appropriated funding for increased education spending and identified how policymakers intended to fund the SFR. Five states—AK, KS, MI, NH, and VT—paid for increased education expenditures by altering tax rates and changing tax revenue sources. A common feature among these five states is that they increased their control over the management of property tax revenues.
We study the progressivity of state funding of school districts under Tennessee’s weighted student funding formula. We propose a simple definition of progressivity based on the difference in exposure to district per-pupil funding between poor and non-poor students. The realized progressivity of district funding in Tennessee is much smaller—only about 17 percent as large—as the formula weights imply directly. The attenuation is driven by the mixing of poor and non-poor students within districts. We further show the components of the Tennessee formula not explicitly tied to student poverty are only modestly progressive. Notably, special education funding is essentially progressivity-neutral for poor students. If we adjust the formula so all factors except individual student poverty receive zero weight and distribute the excess to poor students, we can increase the progressivity of district funding by 124 percent. We interpret this as the opportunity cost of the non-poverty-based funding components, measured in terms of progressivity.
School finance reforms are not well defined and are likely more prevalent than the current literature has documented. Using a Bayesian changepoint estimator, we quantitatively identify the years when state education revenues abruptly increased for each state between 1960 and 2008 and then document the state-specific events that gave rise to these changes. We find 108 instances of abrupt increases in state education revenues across 43 states; about one-quarter of these changes had been undocumented. Half of the abrupt increases that occurred post-1990 were preceded by litigation-prompted legislative activity, and Democrat-party control of a state increases the probability of a changepoint occurring by 8 percentage points.
Knowing how policy-induced salary schedule changes affect teacher recruitment and retention will significantly advance our understanding of how resources matter for K-12 student learning. This study sheds light on this issue by estimating how legislative funding changes in Washington state in 2018-19—induced by the McCleary court-ordered reform—affected teacher salaries and labor market outcomes. By embedding a simulated instrumental variables approach in a mixed methods design, we observed that local collective bargaining negotiations directed new state-level funding allocations toward certificated base salaries, particularly among more senior teachers. Variability in political power, priorities, and interests of both districts and unions led to greater heterogeneity in teacher salary schedules. Teacher mobility rate was reduced in the first year of the reform, and subsequently new hiring rate was reduced in the second year. Suggestive evidence indicates that a $1,000 salary increase would have larger effects on junior teachers’ hiring and their transfers between districts to a greater extent than late-career teachers.
Sixty-seven school finance reforms (SFRs), a combination of court-ordered and legislative reforms, have taken place since 1990; however, there is little empirical evidence on the heterogeneity of SFR effects. In this study, we estimate the effects of SFRs on revenues and expenditures between 1990 and 2014 for 26 states. We find that, on average, per pupil spending increased, especially in low-income districts relative to high-income districts. However, underlying these average effect estimates, the distribution of state-level effect sizes ranges from negative to positive---there is substantial heterogeneity. When predicting SFR impacts, we find that multiple state-level SFRs, union strength, and some funding formula components are positively associated with SFR effect sizes in low-income districts. We also show that, on average, states without SFRs adopted funding formula components and increased K-12 state revenues similarly to states with SFRs.
Use of education finance data is ubiquitous. Yet, because the academic calendar circumscribes two calendar years, researchers have linked the Consumer Price Index to three different dates: the Fall, Spring and academic fiscal years. We demonstrate that linking the CPI to these different academic year results in identifying different trends in U.S. educational spending during the Great Recession. Descriptive inferences should not be sensitive to researcher discretion about merge years. We provide an easy-to-use software package to facilitate implementation of NCES guidelines in the hope that future analyses of education finance data will explicitly and consistently apply inflation adjustments.