Eight years of school finance under New Jersey governor Brendan Byrne is analyzed. The author suggests the new governor will face the same problems Byrne faced eight years ago: a legal challenge to the state's system of funding schools, and a large hole in the state budget. (KC)

Empirical literature on the effects of intergovernmental grants on educational spending is reviewed in this document, which examines 40 published works covering the last two decades. Intergovernmental grants include both state grants to local governments and federal grants to state and local governments. The review's first section summarizes…