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  1. Why do teachers need to know about finance and governance?
    For teachers to influence the direction of schools, they need to become more involved in finance and governance issues. Unfortunately, the insights of students and teachers are rarely heard in policy circles.

  2. How is the property tax connected to unequal educational funding?
    Local communities generally fund their schools through a property tax, which many people consider outdated and unfair. Since some areas are wealthier than others, some school districts generate more than enough money for schools, while others must struggle to keep schools open. Robin Hood laws, built on the California Serrano decision, attempted to equalize educational funding between wealthy and poor communities. Resistance to these attempts led to passage of laws such as Proposition 13, which limited property taxes. Although the Supreme Court recognized that school financing is a flawed system, it did not rule the process unconstitutional. State courts continue to address these financial inequities.

  3. What is the distinction between educational equity and educational adequacy?
    Opposition grew as state court decisions, for example Abbott v. Burke in New Jersey, directed funds be moved from wealthier districts to poorer communities. Because increased funding did not always lead to higher test scores, courts began to differentiate between financial input and educational outcome. Several state court decisions have cited state constitutional language guaranteeing adequate or efficient education, and focus on the educational skills of graduates, rather than per pupil expenditures. While critics of educational equity charge that money will not solve poor educational performance, wellfunded schools draw more qualified teachers and have smaller classes, two factors associated with student achievement.

  4. What are the sources of state revenues?
    The most common state sources of school funding are property tax, sales tax, personal income tax, and state lotteries. Many of these revenue sources are regressive, putting most of the burden on the poorest citizens. Although states have experimented with different funding methods, such as foundation programs and a guaranteed tax base for all districts, none has proved very successful.

  5. How does the federal government influence education?
    According to the Tenth Amendment of the U.S. Constitution, education is the responsibility of the states. Still, the federal government exercises great influence through court actions, funding leverage, and specific programs sponsored by the U.S. Department of Education. Federal monies provide between 6 and 8 percent of K–12 educational costs, much of which is in block grants.

  6. What current trends are shaping educational finance?
    School financing in the future will be influenced by demands tying school performance to funding levels (accountability), the popularity of choice programs, the economy's impact on school budgets, the great need for repairing deteriorating school buildings (infrastructure), and the continuing effort of wealthy communities to retain their tax revenues in their own community, which perpetuates educational inequality.

  7. How do school boards and superintendents manage schools?
    At the state level, the legislature, state board of education, state superintendent, and state department of education administer schools, and delegate some of its power to local school boards and superintendents. Boards of education formulate education policy and can act as trustee representatives, serving the interests of the entire community, or as representative delegates, serving the interests of their neighborhoods. The chief state school officer, often called the superintendent, is responsible for implementing those policies of the state board of education, just as the local superintendent implements the policies of the local board of education. Several large school districts are turning to former lawyers, business executives, political leaders, and even military officers to lead their school districts.

  8. What is the "hidden" government of schools?
    Parents, school secretaries, and custodians influence school life, and are part of the hidden government of schools.

  9. How does the business community influence school culture?
    The business community significantly impacts schools through its ethos, vocabulary, and value system, which promote competitiveness, conformity, and punctuality. Many question the motivation, tactics, and commercialism involved in those efforts.

  10. How are schools being made more responsive to teachers and the community?
    Traditionally, teachers have not had a significant role in school governance. Recent trends of school-based management, also called site-based management, and collaborative decision making, may provide teachers with a more influential position in school governance. Consolidation has decreased the number of school districts while increasing the average size of schools. Supporters believe that this increases educational opportunities and efficiency by absorbing small school districts with limited educational resources and electives into larger districts. Critics claim that it increases alienation and red tape.








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