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Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan

Roy Roy
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Roy Roy: Princeton University

Working Papers from Princeton University, School of Public and International Affairs, Education Research Section.

Abstract: The state of Michigan radically altered its school finance system in 1994. This was a legislature-led reform that took place somewhat unexpectedly and without the intervention of any courts. The new plan, called Proposal A, significantly increased state aid to the lowest spending districts. I investigate the impact of Proposal A on distribution of resources and educational outcomes in Michigan. In the process this paper offers a first detailed look at the effectiveness of a legislature-led school finance reform. I find that Proposal A was successful in reducing inter-district spending disparities. The effect on academic performance is more modest, though there is evidence of significant gains by the lowest spending districts in state tests.

Keywords: School Finance; Inequality a nd Redistribution; Academic Performance; Michigan (search for similar items in EconPapers)
JEL-codes: H4 H7 I2 (search for similar items in EconPapers)
Date: 2004-08
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Citations: View citations in EconPapers (8)

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