Transcript Finance in Education

Finance in Education
Chapter 7
Early Development of State
Responsibility
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Early settlers recognized the importance of education
to the future of the United States, but they left the
various states with the responsibility for its
implementation and development.
Education was not referred to specifically in the United
States Constitution; interpretation of the Tenth
Amendment delegated that responsibility differently
depending on language in their state constitutions and
legislation.
Development of School Finance Policies
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The states have developed their school finance
systems largely by trial and error, with
considerable difficulty and sacrifice.
Public schools were originally largely by land
grants, fees, tuition charges, and other nontax
funds.
Land Grants
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The Northwest Ordinances of 1785 and 1787
and later land grants did much to help states
develop public education. At first, local districts
financed education with little or no assistance,
and there were cast differences in a districts
ability to provide quality education programs.
By the early part of the twentieth century, the
states were making grants to local districts.
Stages of School Finance Theory
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The period of local district financial responsibility, with little or no
assistance from the state.
The period of emerging state responsibility, with the use of flat
grants, subventions, and other nonequalizing state allocations to
local districts
The emergence of the Strayer-Haig concept of a foundation
program
The period of refinement fo the foundation program concept
Power or open-end (shared costs) equalization practices.
Theorists of School Finance
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The equalization principles of George D.
Strayer and Robert M. Haig were being applied
to school finance systems.
Paul Mort and others did much to improve the
equalization concept during the middle years of
the twentieth century.