Title

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

Author(s)

Roy Roy Roy Roy (Princeton University)

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.

Creation Date

2004-08

Section URL ID

Paper Number

8

URL

https://dataspace.princeton.edu/bitstream/88435/dsp01x920fw884/1/8ers.pdf

File Function

Jel

H4, H7, I2

Keyword(s)

School Finance, Inequality a nd Redistribution, Academic Performance, Michigan

Suppress

false

Series

2