Asserts that high wealth districts pay less and receive more while citizens of low wealth districts are strapped with a high tax rate that yields a low return of education, and that it is not the case that low wealth districts are mainly high income, white suburbs. (Author/IRT)

Describes the potential perils of corporate tax incentives for communities. Discusses practices that drain funding from public schools--tax abatements, tax-increment financing, and industrial bonds. Three sidebars are included. (LMI)

Following a 1980 strike by San Jose, California, public school teachers, the San Jose school board was embarrassed by a $6.2 million budget surplus into granting a teacher contract beyond its fiscal capacity. The school board's subsequent decision to declare bankruptcy established a controversial precedent for similar actions elsewhere. (JBM)