Contains papers by state education dept. policymakers, analysts, and data providers on emerging issues in school finance. Includes: estimates of disparities and analysis of the causes of expenditures in public school districts; race, poverty and the student curriculum; court-ordered school finance equalization; resource allocation to schools under conditions of radical decentralization; building equity and effectiveness into school-based funding models; alternative options for deflating education expenditures over time; productivity collapse in schools; and evaluating the effect of teacher degree level on educational performance.

The largest single federal elementary and secondary education grant program to local school districts, $6.7 billion in FY 1996, is Title I. This report examines the measures now included in Title I's Education Finance Incentive Program (EFIP) to reflect state fiscal effort for education and equity in per pupil spending and proposes several options for improving these measures; describes the characteristics of states with higher levels of effort and equity; and proposes alternative ways the options developed could be used in allocating funds under EFIP. Charts and tables.

The United States annually spends over $300 billion on public elementary and secondary education. As the nation enters the 21st century, it faces a major challenge: how best to tie this financial investment to the goal of high levels of achievement for all students. In addition, policymakers want assurance that education dollars are being raised and used in the most efficient and effective possible ways. The book covers such topics as: Legal and legislative efforts to reduce spending and achievement gaps. The shift from "equity" to "adequacy" as a new standard for determining fairness in education spending. The debate and the evidence over the productivity of American schools. Strategies for using school finance in support of broader reforms aimed at raising student achievement. This book contains a comprehensive review of the theory and practice of financing public schools by federal, state, and local governments in the United States. It distills the best available knowledge about the fairness and productivity of expenditures on education and assesses options for changing the finance system.