Rethinking School Finance. A Policy Issues Paper Prepared for the Chief State School Officers of the Northwest and Pacific.

Ways of rethinking school financial policy issues are examined in this report. This rethinking has evolved from growing recognition of two related principles: school finance as part of public finance; and policy formation as a product of commitments and constraints. Principles of public finance, commitments and constraints are described. Five policy options are offered, which include subsuming school finance within public finance, developing comprehensive databases, rearranging the sequence of school finance policy, developing an accountability system, and increasing collaboration. A conclusion is that each part of the system must compromise to a small extent and that school finance reform will not take place until actual school improvement occurs, which requires additional funding. (LMI)