Education finance

Education Finance
James W. Guthrie , Patrick J. Schuermann
LAST REVIEWED: 28 APRIL 2017
LAST MODIFIED: 15 DECEMBER 2011
DOI: 10.1093/OBO/9780199756810-0012
Introduction
Education finance refers to governmental and
organizational processes by which revenues are
generated (through taxation, tuition, fees, and
philanthropy), distributed, and expended for the
operational and capital support of formal schooling.
Scholars and professionals knowledgeable regarding
economics, public finance, school finance,
budgeting, management, accounting, education law,
and intergovernmental relations typically participate
in this field. Education financing should not be
considered exclusively as a technical field
dominated by matters of arcane financial formulas
and budget categories. Rather, it also involves
public policy issues at the dynamic core of any
society regarding equity, efficiency, and freedom of
choice. The citations included in this entry lead a
user to works that encompass the operation of
education financing and the many issue that
characterize this field. They have been selected
because of their comprehensive nature or because
of their significance in influencing the field generally
or a particular policy direction within the historical
evolution of education finance.
General Overviews
The following general works provide a well-
balanced introduction to the broad field of
education finance. The panel report of the National
Academy of Sciences (Ladd and Hansen 1999 ) is a
thoughtful compilation of articles exploring
contemporary issues related to the financing of
public K–12 schools. Extending this treatment to
include higher education and such special
circumstances as rural settings, limited English
proficiency, and special education, Ladd and Fiske
2008 is the most comprehensive compendium of
contemporary articles on the topic. To gain insight
regarding the historical roots of education finance,
readers may turn to Cubberly 1905 . For a
philosophical treatment of the debate between the
roles of markets and government on education
finance, readers are directed to Friedman 1962 . As
nations develop and school systems evolve, new
approaches to school finance emerge. Callahan
1962 describes the social forces that led to key
historical transitions in the finance of American
education. To better understand resource
distribution analyses and the examination of the
relationship between school resources and student
performance, readers should turn to Coleman 1966 .
For those interested in the intersection of education
finance and school law, Coons, et al. 1970 presents
perspectives and arguments that triggered four
decades of judicial action aimed at redressing
school funding inequities. For a more contemporary
view of the influence of funding levels on student
achievement, readers should turn to the compilation
of articles that make up Burtless 1996.
Burtless, Garry, ed. 1996. Does money matter? The
effect of school resources on student achievement
and adult success . Washington, DC: Brookings
Institution.
E-mail Citation »
A compendium of social science articles
considering means by which economists might
conceptualize analyses of schooling and the
operational relationship of schools to resource input
levels.