The Effect of the Composition of the Property Tax Base on Educational Expenditures in Pennsylvania.

Autor/in	Richard, Mark R.
Titel	The Effect of the Composition of the Property Tax Base on Educational Expenditures in Pennsylvania.
Quelle	(1995), (20 Seiten) PDF als Volltext kostenfreie Datei Verfügbarkeit
Sprache	englisch
Dokumenttyp	gedruckt; online; Monographie
Schlagwörter	Educational Economics; Educational Equity (Finance); Educational Finance; Educational Policy; Elementary Secondary Education; Expenditure per Student; Models; Property Taxes; Regression (Statistics); School District Spending; School District Wealth; School Support; Tax Effort; Pennsylvania + Suchen Sie Ihr Suchwort? Bildungsökonomie; Bildungsfonds; Politics of education; Bildungspolitik; Analogiemodell; Regression; Regressionsanalyse; Schulförderverein
Abstract	Pennsylvania state policymakers have taken steps to address issues of educational equity across school districts by amending the school-finance funding system. Pennsylvania relies on local property tax revenues as a major source of funding. This paper examines the effect of the property-tax-base formula on educational expenditures in the state. Fifteen variables were obtained from three sources--the Pennsylvania Educational Policy Studies database, the 1990 United States Census, and the State Tax Equalization Board. Regression analysis found that the nonresidential component of the property tax base gives rise to significant differences in educational expenditures in Pennsylvania. However, policymakers need information about why the disparities occur. Therefore, a log-linear model based on the educational-demand models of Ladd (1974) and Barro (1972) was developed. This more behavioral approach views educational demand as a function of the income/wealth, perceived tax price, and preferences of the median voter. The educational-demand, or behavioral models, were preferred theoretically, but were not entirely reliable. It is concluded that nonresidential property plays a significant role in explaining differences in educational expenditures. Policymakers must address the composition of the property tax base when considering reforms of the current system and must identify the specific degree of tax exporting that occurs. One method of achieving a more equalized base is to institute a tax-base sharing policy, which removes the nonresidential component variations in the tax base. Under such a system the taxes would be collected over a larger geographic area, possibly the county or the local labor-market area. The choice of the specific area could be determined by the degree of tax exporting. Appendices contain statistical data and models. Contains 33 references. (LMI)
Erfasst von	ERIC (Education Resources Information Center), Washington, DC