Prior studies of means-testing in college financial aid formulas have analyzed the disincentives to save attributable to the inclusion of assets in the formulas. Such disincentives are only half of a standard incentives--insurance trade-off. When income is uncertain, a financial aid formula that conditions aid on assets and income provides…

Increasing education funding is a topic of discussion every year at the Minnesota State Legislature. In January, Governor Tim Walz proposed a 4% increase to the basic education formula allowance within the K-12 general education revenue program, the "education formula" that determines the majority of funding school districts receive from…

The U.S. education system is in reality 51 distinct systems, each governed by unique rules for revenue generation, allocation, and utilization (Baker, 2021). Despite this decentralization, common trends exist in state funding policies. All 50 US states adjust resource allocation in efforts to address the perceived unique needs of particular…

The proverbial clock is ticking for many Kansas school buildings, whether due to implications of a complete slowdown due to code compliance, or due to failure of critical systems. Regardless of the reasons, millions of square footage of learning spaces are in jeopardy of no longer being able to serve students in adequate teaching and learning…

Over the past several decades, school funding in New Jersey has been through multiple reforms in attempts to provide districts with enough funding to offer students a thorough and efficient education. The most recent funding formula adjustment has led, and may continue to lead, to significant funding decreases for the majority of Sussex County,…

Education ensures that children from all backgrounds have equal opportunities to succeed. Yet, the education provided for many K-12 students in the state of Texas may not be equal due to the allocation of school funds under House Bill 3 (H.B. 3). To date, the Revenue to Population (RTP) Index and other normalized statistical metrics have not been…

This report provides background information on Forest Service (FS) and Bureau of Land Management (BLM) revenue-based payments and a brief overview of a related payment program--the Payments in Lieu of Taxes (PILT) program. Because the revenue-based, Secure Rural Schools and Community Self-Determination Act of 2000 (SRS), and PILT payments interact…

At their best, K-12 public school systems can be engines of social and economic mobility. Unfortunately, schools in lower-income districts -- whose students have the greatest academic needs -- often receive less funding than their counterparts in more affluent districts. Discussions about closing these funding gaps usually zoom all the way out to…

Federal student aid formulas prioritize income over wealth. Using nationally representative data from two cohorts, we argue that federal student aid policy thus under-addresses wealth-driven financial need and that this oversight contributes to racial disparities in student debt, in turn reinforcing the United States's longstanding racial wealth…

This publication provides governmental and higher education decision-makers a statewide perspective of Arkansas public higher education finance for the 2021-23 biennium, as well as trends for the past several years. It also contains a detailed financial profile of each institution and presents a basis for comparative assessments of revenue sources…

This First Look report presents data on public elementary and secondary education revenues and expenditures at the local education agency (LEA) or school district level for fiscal year (FY) 2022. Specifically, this report includes the following types of school district finance data: (1) revenue, current expenditure, and capital outlay expenditure…

Private postsecondary education leaders are concerned with the value of education and the benefits students receive after graduation. Federal regulations dictate that private postsecondary education institutions will not qualify for Title IV funds if they do not meet minimum student outcome requirements, including cohort default rates and 90/10…

Sixty-seven school finance reforms (SFRs), a combination of court-ordered and legislative reforms, have taken place since 1990; however, there is little empirical evidence on the heterogeneity of SFR effects. In this study, we estimate the effects of SFRs on revenues and expenditures between 1990 and 2014 for twenty-six states. We find that, on…

California state-level policies are responsible for allocating nearly 80 percent of the revenue received by its K-12 school districts. In 2013-14, the state implemented the Local Control Funding Formula (LCFF), which changed the allocation formula from one based primarily on equal revenue per pupil to an equity-focused allocation based primarily…

In this report, the authors propose and simulate a framework for a new foundation formula approach to distributing federal K-12 education aid. This proposal, with full funding and compliance, would provide every school district with the estimated revenues necessary to reach the goal of average national outcomes in mathematics and reading. The…