This paper examines how school districts change teacher salaries in response to large changes in revenue. Using district-level salary schedule data for nearly all California school districts, we analyze two time periods: one with a decrease in funding (2007-08 to 2011-12 marked by the Great Recession) and one with a significant increase in funding…

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 twenty-six states. We find that, on…

Property tax limits have been found to reduce property tax revenue, with compensatory increases in replacement taxes often not sufficiently making up for funding loss and systematically promoting inequity. Consequently, such practices suggest severe implications for school district fiscal capacity. Our study explored this issue in South Carolina…

Connecticut's public K-12 education system relies heavily on local funding, resulting in substantial disparities between affluent districts and low-income districts with a large proportion of socioeconomically disadvantaged students who are more costly to educate. Despite recent improvements, the existing state aid formula has been criticized for…

In the United States, researchers have documented persistent racial disparities in school funding for decades. Drawing on evidence from a recent policy change in Pennsylvania, this article contributes to research on the role of state governments in limiting or expanding racial disparities in K-12 education funding by examining differences in the…

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…

In 2019, the Texas Legislature passed House Bill 3 (HB 3) -- an $11.6 billion school finance reform law that dedicated over $6 billion toward investments in education and $5 billion toward replacing school property taxes with state aid. The property tax cut portion of HB 3 is set to expand each year, costing the state more money annually without…

Instead of asking whether money matters, this paper questions whose money matters in public education. Previous literature on education funding uses an aggregate expenditure per pupil to measure the relationship between education funding and academic performance. Federalism creates mainly three levels of funding sources: federal, state, and local…

In 2013, California implemented an ambitious school funding reform, the Local Control Funding Formula (LCFF), which allocates state funding by the proportion of unduplicated "high-need" students in the district: those from low-income families, English learners, and those in foster care. The goal of LCFF was to reduce academic achievement…

In 2013, California implemented an ambitious school funding reform, the Local Control Funding Formula (LCFF), which allocates state funding by the proportion of unduplicated "high-need" students in the district: those from low-income families, English learners, and those in foster care. Using student-level longitudinal data for all…