 Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from MichiganJoydeep Roy () Education Finance and Policy, 2011, vol. 6, issue 2, 137-167 Abstract: Michigan radically altered its school finance system in 1994. The new plan, called Proposal A, significantly increased state aid to the lowest-spending school districts and limited future increases in spending in the highest-spending ones, abolishing local discretion over school spending. I investigate the impact of Proposal A on the distribution of resources and educational outcomes. I analyze the differential effects on the lowest-spending and the highest-spending districts, highlighting the role of local discretion, which has so far been neglected in the literature. I also provide important evidence on the effect of spending on academic performance. Proposal A was quite successful in reducing interdistrict spending disparities. There was also a significant positive effect on student performance in the lowest-spending districts as measured in state tests. However, the constraints on future increases in spending may have had a negative effect on student performance in the highest-spending districts. © 2011 Association for Education Finance and Policy Keywords: school finance reform; resource equalization; academic performance; Michigan (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:tpr:edfpol:v:6:y:2011:i:2:p:137-167 Ordering information: This journal article can be ordered from Access Statistics for this article Education Finance and Policy is currently edited by Stephanie Riegg Cellini and Randall Reback More articles in Education Finance and Policy from MIT Press |
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