School Finance Flashcards
Equity in school finance
Fairness in the expenditures per pupil and fairness in the treatment of taxpayers.
Best way to measure equity
Comparing the expenditures per child
Horizontal equity
The equal treatment of equals (better than vertical equity which is the unequal treatment of un-equals)
Weighted-pupil approach
The most method used to address vertical equity (used to equitably treat students with learning disabilities, students in isolated areas, etc.)
Equity for taxpayers
Even though real property taxes are paid at the same rate in a given district, they are not quotable due to different rates of assessment as compared to market values, different degrees of ownership of the property beignet axes, differences in income, etc.
Mileage
Property tax rate expressed in dollars per hundred dollars of assessed valuation.
Proportional Taxes
Same percentage of taxation regardless of income.
Progressive Taxes
Percentage increase in taxes based on increase in income.
Regressive Taxes
People with higher incomes pay a lower percentage of taxes.
What is the best measure of school district wealth?
Assessed valuation of real property; The use of assessed valuation of property per pupil is more equitable than assessed valuation of property per capita for the operation of school finance programs (capita = population)
Full State Funding
When the state, itself, provides for the public school program completely.
Disadvantage -> more state control and lack of innovative programs.
District Power Utilization (DPE)
Partnership between the state and local school district where “each local school district mill levy should produce the same number of dollars of total school revenue per mill per weighted student in every district, and the last mill to be levied should produce the same total funds as the first one.”
Advantages -> Local control,but it is possible that the people of the local school district may be unwilling to tax themselves reasonably.
Measures of Need for funding
ADM: number of students enrolled
ADA: number of students attending daily
Weighting factors: best measures of how much more is needed to provide all students with equal educational programs.
Types of Weightings
- Sparsity of students in rural areas
- Density of student in urban areas
- Grade levels of students
- Degree of disadvantage that certain types of students may have
Taxation
Most successful system for people to divert a certain amount of their wealth to the government in performing public services.
What are the three variables for taxes?
- The tax base: value of the objects or items being taxed
- Assessment practices being followed: percentage of market value applied to the object being taxed
- The tax levy: the rate applied to the assessed value of an object or item to determine the amount of tax obligation
Property Tax or Ad Valorem
A tax on the owner of real or personal property.
Real Property -> buildings, land, improvements
Personal Property -> moveable, tangible
Expressed in mills per dollar of assessed valuation or dollars per hundred
Income Tax
A progressive tax on the income of a person for one year
Sales Tax
A tax on the sale fo certain goods and services and is often used at the state level.
Sumptuary Tax
Imposed by the government, with the primary purpose of helping to regulate or control a certain activity that is not in the public interest.
Example -> taxation fo tobacco products
Severance Tax
Also known as… production, conservation, or mining occupation tax is imposed by the state for the removal of natural products like oil, gas, minerals, timber, and fish.
Other Potential Sources of Revenue
- Lotteries: there is uncertainty in the receipts or sales.
- Private foundations: benefits include not only financial advantage but also partnerships formed between public and private sectors.
- School-business partnerships: another way for public and private sectors to form relationships. Business may donate or in-kind contributions to schools.
