Many state education leaders are taking a fresh look at school finance in hopes of containing costs. Some are reworking transportation formulas, or zeroing in on special education eligibility, or merging districts. Others are investing more in digital learning, charter innovations, and information systems. But state leaders too often overlook a…

Tough economic times mean tight school district budgets, possibly for years to come. Education is a labor-intensive industry, and because most districts devote well over half of all spending to teacher compensation, budget cuts have already led to the most substantial teacher layoffs in recent memory. Although the 2010 federal Education Jobs and…

Since the 1970s, proponents of greater spending in disadvantaged school districts have pursued their goal through litigation in state courts. They have brought suits in 45 of the 50 states. These suits began with claims of equity, which sought to redistribute revenues from rich to poor districts. Disappointed with the results, within a decade the…

Critics argue that No Child Left Behind's requirement that states bring all students up to academic proficiency by the year 2014 represents a massive unfunded mandate. These critics reason that unless the feds put a lot more money on the table, financially strapped state and local governments will be forced to raise taxes sharply. Otherwise, the…

Examines the politics of school budgeting. School managers operate with primitive accounting systems that can mask financial problems for years and are trapped by state, federal, and union mandates. Reforms include allowing districts flexibility to reallocate money; demanding both instructional leadership and financial expertise from…

Argues that school systems are so centralized that they waste money on bureaucratic operations and lack the capacity to respond rapidly to changing circumstances. A study of nine school systems that vary dramatically in their degree of decentralization demonstrates that true decentralization yields benefits in both efficiency and performance. (MLF)