Incidence and Outcomes of School Finance Litigation: 1968-2021

Eric Hanushek and Matthew Joyce-Wirtz

No 31271, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: School finance court cases have proceeded one or more times in all but two states. Plaintiffs ask the courts to rule that the existing funding formula is unconstitutional under state constitutions, and the defendants call for continuation of the existing finance formula. By compiling and analyzing the universe of such cases, we can accurately describe the nature of the cases, the decisions made, and the long run impact on overall financing of schools. Defendants win a slight majority of decisions with, surprisingly, their victories coming most frequently in low spending states and in low achieving states. And, while plaintiff victories on average yield an immediate increase in funding, they have no influence on long run growth in school spending.

JEL-codes: H4 I22 (search for similar items in EconPapers)
Date: 2023-05
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Published as Eric A. Hanushek & Matthew Joyce-Wirtz, 2023. "Incidence and Outcomes of School Finance Litigation: 1968–2021," Public Finance Review, vol 51(6), pages 748-781.

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