Examining the equity implications of school fiscal and physical resources and constraints

Session Submission Type: Panel

Abstract

Education finance and infrastructure play a crucial role in shaping the distribution of education resources and access to school services. Yet, the equity implications of school fiscal and physical resources (or constraints) may vary widely across districts and schools. This panel brings together four empirical studies that examine the fiscal and equity impacts of education finance policies and mechanisms, including a school funding equalization reform, tax increment financing (TIF), shared school facilities, and capital outlay surtaxes. By examining datasets across multiple states, districts, and schools, these studies provide insights into both intended and unintended consequences and policy trade-offs associated with education finance decisions. 

Many school finance policies aim to equalize funding, yet their effects on equity remain complex. The first paper, "Ample Funding for All: Fiscal Effects of Advancing School Funding Equity in Washington," examines the impact of Washington's McCleary decision. While the reform increased total revenue and state funding shares, it primarily flattened revenue disparities rather than providing additional aid to disadvantaged districts. Similarly, the second paper, "The Effects of Tax Increment Financing on School Finance: The Case of Nebraska," explores how TIF policies disproportionately burden rural and low-income school districts, revealing the unintended consequences of economic development incentives on school finance equity.

School spending may also depend on the physical capacity of school facilities. The third paper, "Does Sharing a School Cafeteria Cut Costs? Evidence from New York City Public Schools," uses school-level spending data to examine whether shared buildings are associated with cost-savings in food expenditures, as well as spillovers to other instructional spending. The fourth paper, "Does School Capital Outlay Surtax Affect School Infrastructure, Funding, and Performance? Evidence from Florida," examines how Florida's school capital outlay surtax expanded classroom capacity and reduced class sizes but did not improve student performance. The study also finds evidence of the shifts in funding sources for school infrastructure, raising concerns about the effectiveness and equity of its funding for school infrastructure. 

By examining education finance from multiple angles, this panel offers a rich discussion on the fiscal and equity implications of education finance decisions. The findings have direct relevance for policymakers, educators, and researchers concerned with improving school finance systems while ensuring equitable access to quality education.  

Policy Area

• Public and Nonprofit Management and Finance

Secondary Policy Area

• Education

Chair

• Phuong Nguyen-Hoang, University of Iowa

Discussants

• J. Cameron Anglum, Lehigh University

• Can Chen, Georgia State University

Organizer

• Jeehee Han, Texas A&M University

Individual Presentations

• Ample funding for all: fiscal effects of advancing school funding equity in Washington - Presenting Author: Olha Krupa, Seattle University; Non-Presenting Co-Author: Eugenia Gorina, University of Texas, Dallas

• The Effects of Tax Increment Financing on School Finance: The Case of Nebraska - Non-Presenting Co-Author: Phuong Nguyen-Hoang, University of Iowa; Presenting Author: Trang Hoang, Texas A&M University

• Does Sharing a School Cafeteria Cut Costs? Evidence from New York City Public Schools - Presenting Author: Jeehee Han, Texas A&M University; Non-Presenting Co-Author: Michah Weitzman Rothbart, Syracuse University

• Does School Capital Outlay Surtax Affect School Infrastructure, Funding, and Performance? Evidence from Florida - Presenting Author: Yoon-Jung Choi, Florida International University