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While there is a wealth of research on school finance equity and adequacy, and school finance theory clearly documents differences between the two concepts, no study has examined whether the reforms engendered by each approach actually differ in terms of resource distribution. This study examines the issues using district level data on expenditure by function from two, large national datasets: U.S Census of Governments School System Finance File (F-33, 1972-2002) and the National Center for Education Statistics' Longitudinal School District Fiscal-Nonfiscal File (FNF, 1990-2000). A difference-in-differences estimator with state and year fixed effects indicates that both court-mandated equity and adequacy reforms decrease resource inequities. However, estimates based on data from the F-33 file show negligible differences between equity and adequacy reforms, while estimates based on data from the FNF file indicate adequacy reform does not decrease horizontal inequities as much as court-mandated equity reform. To examine these contradictory findings, we implement a two-stage regression approach to examine if court-mandated adequacy reform is associated with a state funding mechanism accounting for certain educational needs of students. Court-mandated adequacy reform does not result in the allocation of additional resources to low income districts when compared to states under court-mandated equity reform. We conclude that, contrary to school finance theory, resource distribution patterns following court-mandated equity and adequacy reforms are not statistically different. (Contains 14 footnotes and 7 tables.)

Throughout the history of publicly-funded voucher programs--enacted and proposed--the impact on taxpayers has been a recurring issue. As the nation's longest-running program, the Milwaukee Parental Choice Program (MPCP) provides an important case study. The fiscal impact of Milwaukee's program has evolved in very significant ways over its 18-year history, both in size (as the program grew) and in its allocation among different groups of taxpayers--Milwaukee property taxpayers, non-Milwaukee property taxpayers, and Wisconsin state taxpayers. This report closely examines the features of the MPCP funding formula, and its interaction with the state's regular district funding formula over the program's history to better understand the impact on taxpayers. Appendices include: (1) Review of selected previous literature; (2) Further Details in Funding Formulas; and (3) Equations Underlying Tables and Figures. (Contains 66 footnotes, 8 tables, and 9 figures.)

In response to the rapid rise in court cases related to the adequacy of school funding, a variety of alternative methods have been developed to provide an analytical base about the necessary expenditure on schools. These approaches have been titled to give an aura of a thoughtful and solid scientific basis: the professional judgment model, the state-of-the-art approach, the successful schools method, and the cost function approach. Unfortunately, none can provide a reliable and unbiased answer to the question "how much do adequate schools cost?" Each is highly manipulable, generally satisfying the interested party commissioning the work to be done but not meeting the fundamental tenets of scientific inquiry. This paper reviews and critiques the methodology as applied in a substantial number of states. (Contains 43 endnotes.)

The Hancock school finance case put the adequacy doctrine to its strictest test yet, to see if even a national educational leader such as Massachusetts could be found in constitutional violation. The doctrine failed this test, as the court found in favor of the defendants due to the vigorous reform program since 1993. The court credited the state's steady educational progress, closing of funding gaps between rich and poor districts, and its strong program of accountability and standards. None of this is relevant under the adequacy doctrine, which posits a constitutional funding requirement tied to specified educational outcomes. The lessons of Hancock are that courts need not accept the adequacy doctrine as the constitutional standard, but the best strategy to head off judicial intervention is to adopt Massachusetts-type reforms. (Contains 10 figures and 66 footnotes.)

In August 2004 the first ever federally funded school voucher program began in Washington, D.C. Eligible students could attend a private school of their choice in the District of Columbia. Each participant received up to $7,500 for school tuition, fees, and transportation. In addition, the D.C. Public School System (DCPS) and D.C. charter school system each received $13 million in federal grants to improve their programs. This study examines the fiscal impact of the voucher program on DCPS and the District of Columbia. The program is currently funded by the federal government and creates a net inflow of funds to both the District and DCPS. This study also examines the fiscal impact of the program under several proposed changes to the law. Those scenarios include funding the program locally, making it universally available to all D.C. public school students, and expanding capacity by including regional private schools. Our findings include the following: (1) The current program saves the city nearly $8 million, mostly because it is federally funded and includes a federal grant to public schools; (2) If federal grant subsidies were withdrawn and the program were locally funded, the city would still save $258,402 due to the greater efficiency of school choice; (3) A locally funded universal program would maximize the economic benefits of school choice, saving $3 million; and (4) The process by which both DCPS and its schools are funded is not conducive to efficiency or excellence. The voucher program currently allows the central administration to retain an even higher share of overall funding than it did previously, leaving the management of reduced expenditures predominately at the school level. A universal school choice program could help to put a larger share of resources into the hands of schools. (Contains 27 notes and 7 tables.)