Examines the implementation of Short-Lived Unanticipated Grants (SLUG) in Connecticut to determine to what extent the political process distorted the reform. Describes the SLUG proposal and its estimation in the median-voter model. Describes evidence of special-interest behavior of the school bureaucracy. Questions use of median-voter model to…

Discusses the relationship between school size and per-pupil educational costs and describes a number of possibilities for using state aid formulas to encourage school districts to operate schools of optimal size. Three possible approaches are discussed, including penalty factors, incentive payments, and a combination of penalties and incentives.…