Michigan and Ohio K-12 Educational Financing Systems: Equality and Efficiency Public Deposited

http://ir.library.oregonstate.edu/concern/articles/6q182m882

This is an author's peer-reviewed final manuscript, as accepted by the publisher. The published article is copyrighted by the Association for Education Finance and Policy and published by MIT Press. It can be found at:  http://www.mitpressjournals.org/toc/edfp/9/4.

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  • We consider issues of equality and efficiency in two different school funding systems - a state-level system in Michigan and a foundation system in Ohio. Unlike Ohio, the Michigan system restricts districts from generating property or income tax revenue to fund operating expenditures. In both states, districts fund capital expenditures with local tax revenue. Our results indicate that although average revenue and expenditures per pupil in Michigan and Ohio are almost identical, the distributions of the various revenue sources are quite different. Ohio’s funding system has greater equality in terms of total revenue, largely due to Ohio redistributing state funds to the least wealthy districts while Michigan does not. We find that relatively wealthy Michigan districts spend more on capital expenditures while relatively wealthy Ohio districts spend more on labor and materials. This suggests that constraints on raising local revenue to fund operating expenditures in Michigan could create efficiency issues.
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  • Conlin, M., & Thompson, P. N. (2014). Michigan and Ohio K–12 Educational Financing Systems: Equality and Efficiency. Education Finance and Policy, 9(4), 417-445. doi:10.1162/EDFP_a_00142
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  • description.provenance : Made available in DSpace on 2015-03-02T20:29:04Z (GMT). No. of bitstreams: 1 ThompsonPaulEconomicsMichiganOhioK-12.pdf: 499109 bytes, checksum: d930570681bcf2f89821163676a9265a (MD5) Previous issue date: 2014
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