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Finance and Governance





Why do teachers need to know about finance and governance?

  • While issues of finance and governance at first may appear to be beyond the interest of classroom teachers, in fact such issues often directly influence the quality of life in the classroom.
  • Teachers should become more involved in finance and governance policies, so that they can influence the direction of schools, take an active role in their own profession, and be a voice for the children they teach. Unfortunately, the insights of students and teachers are not heard in policy circles.



    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  • Local communities generally fund their schools through a property tax, which many people consider outdated and unfair.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.
  • Municipal overburden refers to the additional revenues needed by cities to respond to numerous social needs.
    Robin Hood laws built on the California Serrano decision, and 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 and lowered the quality of education in many communities.
  • Although the Supreme Court recognized that financing schools through the property tax is a flawed system, it did not rule the process unconstitutional. It has been left up to states to address the financial inequities brought about by relying on the property tax to finance our schools.



    What is the distinction between educational equity and educational adequacy?

  • Resistance to funding equalization plans arose through court decisions such as Abbott v. Burke in New Jersey. When courts directed that funds from wealthier districts be moved to poorer ones, opposition to educational equity plans grew.
  • Citizens objected to the loss of local control, and wealthy and influential communities voiced their opposition to the transfer of local funds to other communities.
  • Increased funding did not always lead to higher educational 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. Many, but not all states, are now focusing on the educational skills of graduates, rather than per pupil expenditures, as the yardstick for fairness in education.



    What are the sources of state revenues

  • The most common state sources of school funding are property tax, sales tax, personal income tax, state lotteries, and other taxes. Funding is especially difficult for poorer communities and states, where even high tax rates do not raise enough money for the schools.
  • Many of the state sources of revenue are regressive, putting most of the burden on the poorest citizens.
  • States have experimented with different funding methods, such as foundation programs and a guaranteed tax base for all districts, in order to help poorer communities fund schools. None has proved very successful.



    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, categorical grants, 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. Most Americans believe that all levels of government underfund education.



    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 great need for repairing deteriorating school buildings (infrastructure), and the continuing effort of wealthy communities to retain their tax revenues in their own community to ensure superior public schools.



    How do school boards and superintendents work together to manage schools?

  • At the state level, the legislature, state board of education, state superintendent, and state department of education provide the policy and administration of schools.
  • The state also delegates some of its power to local school boards and superintendents, who administer individual school districts.
  • The board of education at both the state and local levels is responsible for formulating educational policy. The chief state school officer, often called the superintendent, is responsible for implementing the policies of the state board of education, just as the local superintendent implements the policies of the local board of education.
  • School boards can act as trustee representatives, serving the interests of the entire community, or representative delegates, serving the interests of their neighborhoods. School board members are typically white, male, conservative, and economically well-off.
  • School boards vary in the way they operate, and the kind of superintendent they prefer. Boards range from dominating educational decisions to passive acceptance. Successful superintendents can"read" their school board, and manage bureaucracies.
  • Several large school districts are turning to former lawyers, business executives, political leaders and even military officers to lead their school districts.
  • School principals also confront stressful job pressures, which contributes to the shortage of candidates for this position. Most principals are male and white, although the number of female principals has been increasing.



    What is the

  • Parents, school secretaries, and custodians can be influential in a teacher's success. They are part of the hidden government of schools.



    How does the business community influence school culture?

  • The business community has had a significant impact on schools. Certain business-oriented values, such as competitiveness and punctuality, are part of the school culture. Moreover, many businesses are becoming directly involved in schools, donating products, dollars, and volunteers to work with students.
  • The business community has been demanding higher standards and testing to prepare a more effective workforce.
  • Some question the growing business influence and commercialism in the nation's schools. Critics argue that the purpose of schooling should be more than providing workers for corporate America.
  • In addition to the growing business influence, parents and civic groups are also involved in school partnerships. Many schools are working to create better home and school partnerships.



    How are schools being made more responsive to teachers and the community?

  • Traditionally, teachers have not had a significant role in school governance. However, the 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.
  • The size, culture, and history of individual school districts influence the effectiveness of these programs, and teacher participation in school policy appears more effective in some districts than others.
  • Consolidation has decreased the number of school districts while increasing the average size of schools.
  • Supporters of consolidation believe that it increases educational opportunities and efficiency by absorbing small school districts with limited educational resources and electives into larger districts.
  • Those who oppose consolidation claim that it increases alienation and red tape. As a result, many larger school districts have reorganized themselves into smaller, decentralized administrative units.







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