Question

In: Economics

Explain how local public schools are funded and how other levels of government (state, federal) contribute...

Explain how local public schools are funded and how other levels of government (state, federal) contribute to K-12 educational funding. In your opinion, is this a fair system? If not, please state how this can be changed?

Solutions

Expert Solution

K–12 public education in the United States is provided by federal, state and local governments. Under the Constitution, responsibility for public education lies with the state. Annual funding levels vary dramatically across the country, with an average range from $4,000 to $10,000 for disabled students, and from $10,000 to $20,000 for disabled students. For these categories, the federal government provides about 10 per cent of the overall budget, mainly in the form of categorical grants to state educational agencies. The bulk of school funding is provided by local taxes (40 per cent –50 per cent). The heavy reliance on local property taxes is causing significant differences in funding across and within states.

Local funding mechanisms often vary widely, and municipal budgets are highly dependent on local revenues. Technically, there are no federal "mandates" that are unfunded. Every federal education law is conditional upon a state's decision to accept federal funds. The federal law only applies when a state voluntarily receives federal funds. Any state that does not wish to comply with the requirements of a federal program that opt not to accept the federal funds associated with that programme. Many states and districts adopt the standards, and then find that there is insufficient state and federal money to cover local costs. Iion between the services for general education and special education.

Federal support for special education comes mainly from two sources: the Every Student Succeeds Act (ESSA) and the Individuals with Disabilities Act (IDEA). ESSA offers categorical grants to promote the success of the students in low-income regions. IDEA accounts for the majority of the current commitment by the federal government to special education.
State funding formulas for special education differ, and depend on the tax structure of the local district. Equalization is not assured, so there is a large gap in support across the country in some regional areas.


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