Defined benefit (DB) pension plans incentivize "salary spiking," where sharp increases in pay are leveraged into significantly higher levels of retirement compensation. While egregious instances of salary spiking occasionally make headlines, there is little guidance on the definition of salary-spiking behavior or understanding of its…

State education finance sets the stage for what is possible in schools. Too many state education finance systems today are inequitable, outdated, and inadequate, and there are often significant political barriers to change. Advocates for educational equity can and should play an essential role in shaping the allocation and structure of state…

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…

Defined benefit (DB) pension systems determine the size of pension payments using an employee's "final average salary". Thus, employees enrolled in DB pension systems face an incentive to "salary spike" -- strategically increase late career pensionable compensation -- to increase their retirement income. This is an important…

This article explores the passage and failure of the 1973 Illinois Resource Equalizer formula which was designed to reduce disparities in school finance by breaking the connection between local wealth and school revenue. It argues that two sets of goals drove passage of the new law--equity and local property tax relief--and they came into conflict…

Illinois' pension plans have sent the state on a downward spiral. One out of every four dollars that state taxpayers send to Springfield goes toward pensions, and the vast majority of these contributions go toward paying down large pension debt, not the actual retirement benefits given to state and local workers like teachers. The teacher pension…

This brief examines braiding, blending, and layering funding streams as possible strategies for supporting and sustaining high quality preschool programs. Interviews across three states with school district administrators, a Head Start director, and the director of a child care program illustrate how some leaders at the local level combine…

California policymakers have established the expectation that all public school students should have access to a broad course of study, in classes where instruction is consistent with the state's content standards. Further, the state holds schools and school districts accountable for their ability to ensure that all students achieve at a specified…

Teacher salary decisions are often made with little connection to the pension obligations they entail. In this paper, authors Marguerite Roza and Jessica Jonovski model the impacts of late-term raises on teacher pension obligations showing that on average each dollar raise triggers $10 to $16 in new taxpayer obligations. The authors provide…

This study examines the relationships between school funding and students' college preparation, postsecondary enrollment, and postsecondary degree attainment, adding to the literature on how money matters in education. The author addresses how past school funding levels among Illinois public high schools may have been associated with students'…

Illinois confronts a financial crisis that threatens its capacity to implement the state's long-fought-for plan for improving our education system. Two-thirds of our school districts are now deficit-spending. Districts have dismissed at least 6,400 educators and aides, closed schools, lengthened bus routes, and reduced programs in everything from…

The purpose of this study was to identify financial management strategies that school business officials have found most successful in achieving school district financial stability. To accomplish, 208 Illinois school business officials in six counties: Cook, DuPage, Kane, Lake, McHenry, and Will counties, excluding Chicago School District 299,…

Rising college costs are of increasing concern. At the 12 public universities in Illinois, average increases in tuition were modest, generally in the 4% range, until 1999 when individual campuses begin to increase tuition at double digit rates. In 2002-2003, the overall average increase in tuition/fees more than doubled at 13.79%. In an effort to…

When former U.S. congressman and Obama administration chief of staff Rahm Emanuel marched triumphantly into the Chicago mayor's office in 2011, he promised to revamp Chicago Public Schools (CPS) in ways that had barely been contemplated in 16 years of mayoral control over the city's sprawling public-school system. This article discusses and…

In 2009 the Obama administration announced a focused commitment to turn around 5,000 of the United States' chronically lowest-performing public schools as part of the American Recovery and Reinvestment Act (ARRA). This commitment came with $3 billion in funding for the School Improvement Grant program, or SIG, along with new guidelines to ensure…