Did Proposition 2 1/2 affect local public education in Massachusetts? Evidence from panel data

Ron Shadbegian and Robert T. Jones

Global Business and Economics Review, 2005, vol. 7, issue 4, 363-380

Abstract: Did Proposition 2 1/2 affect local public education in Massachusetts? Using a panel data set on school district budgets (1972–1992), the authors find the following. School districts constrained by Proposition 2 1/2 have significantly less own-source revenue. However, constrained districts receive significantly more intergovernmental revenue approximately offsetting the reduced own-source revenue, leading to no significant change in education spending. On the other hand, an analysis of a cross-section of school districts shows that student achievement in constrained districts is significantly lower than unconstrained districts. Thus, the evidence indicates that Proposition 2 1/2 reduces student performance in Massachusetts, even though it has no significant impact on school resources.

Keywords: Proposition 2 1/2; public education; school quality; Massachusetts; TELs; tax and expenditure limitations; property tax levy; school district budgets; intergovernmental revenue; education spending; student achievement; student performance; school resources. (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (2)

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