EDUC 648 QUIZ 3: REVENUE—LOCAL
VS. STATE CONTROL EXAM
QUESTIONS AND ANSWERS
1. Which legal standard, established in the Serrano v. Priest (1971) case, posits that the
quality of a child’s education should not be a function of the wealth of his or her neighbors?
A. Educational Adequacy
B. Rational Basis
C. Strict Scrutiny
D. Fiscal Neutrality
Answer: D
Conceptual Explanation: Fiscal neutrality is the principle that the funding of a student’s
education should not depend on the property wealth of their local district.
2. In the context of school finance, what does the term ‘Tax Capacity’ refer to?
A. The ability of a school district to generate revenue based on its tax base
B. The willingness of a community to vote for tax increases
C. The actual amount of revenue collected by a district
D. The total number of students enrolled in the district
,Answer: A
Conceptual Explanation: Tax capacity is a measure of the wealth or property value
available within a district that can be taxed to support education.
3. The U.S. Supreme Court case San Antonio Independent School District v. Rodriguez (1973)
had which significant impact on school finance?
A. It declared education to be a fundamental right under the U.S. Constitution
B. It mandated that states provide equal funding to all districts
C. It ruled that the 14th Amendment does not require absolute equality in school funding
D. It outlawed the use of local property taxes for school funding
Answer: C
Conceptual Explanation: The Court ruled that education is not a fundamental right under
the U.S. Constitution, shifting the focus of school finance litigation to state constitutions.
4. Which school finance model provides a uniform amount of state funding per pupil
regardless of the district’s local wealth or tax effort?
A. Foundation Program
B. Flat Grant
C. District Power Equalizing
D. Full State Funding
Answer: B
, Conceptual Explanation: A flat grant provides a fixed amount per student or teacher,
which does not account for differences in local wealth or tax rates.
5. A ‘regressive tax’ is characterized by which of the following?
A. A tax that takes a larger percentage of income from low-income earners than high-
income earners
B. A higher tax rate for those with higher incomes
C. A tax that is based on the value of property owned
D. A tax that remains constant regardless of income level
Answer: A
Conceptual Explanation: Regressive taxes, such as sales taxes, place a heavier relative
burden on individuals with lower incomes.
6. What is the primary objective of a ‘Foundation Program’ in state school finance?
A. To eliminate the use of local property taxes entirely
B. To ensure every student has access to a minimum level of educational expenditure
C. To reward districts with high tax efforts with extra funding
D. To fund only capital outlay and infrastructure projects
Answer: B
Conceptual Explanation: The Foundation Program aims to guarantee a base level of
funding per student, usually requiring a minimum local tax effort.
VS. STATE CONTROL EXAM
QUESTIONS AND ANSWERS
1. Which legal standard, established in the Serrano v. Priest (1971) case, posits that the
quality of a child’s education should not be a function of the wealth of his or her neighbors?
A. Educational Adequacy
B. Rational Basis
C. Strict Scrutiny
D. Fiscal Neutrality
Answer: D
Conceptual Explanation: Fiscal neutrality is the principle that the funding of a student’s
education should not depend on the property wealth of their local district.
2. In the context of school finance, what does the term ‘Tax Capacity’ refer to?
A. The ability of a school district to generate revenue based on its tax base
B. The willingness of a community to vote for tax increases
C. The actual amount of revenue collected by a district
D. The total number of students enrolled in the district
,Answer: A
Conceptual Explanation: Tax capacity is a measure of the wealth or property value
available within a district that can be taxed to support education.
3. The U.S. Supreme Court case San Antonio Independent School District v. Rodriguez (1973)
had which significant impact on school finance?
A. It declared education to be a fundamental right under the U.S. Constitution
B. It mandated that states provide equal funding to all districts
C. It ruled that the 14th Amendment does not require absolute equality in school funding
D. It outlawed the use of local property taxes for school funding
Answer: C
Conceptual Explanation: The Court ruled that education is not a fundamental right under
the U.S. Constitution, shifting the focus of school finance litigation to state constitutions.
4. Which school finance model provides a uniform amount of state funding per pupil
regardless of the district’s local wealth or tax effort?
A. Foundation Program
B. Flat Grant
C. District Power Equalizing
D. Full State Funding
Answer: B
, Conceptual Explanation: A flat grant provides a fixed amount per student or teacher,
which does not account for differences in local wealth or tax rates.
5. A ‘regressive tax’ is characterized by which of the following?
A. A tax that takes a larger percentage of income from low-income earners than high-
income earners
B. A higher tax rate for those with higher incomes
C. A tax that is based on the value of property owned
D. A tax that remains constant regardless of income level
Answer: A
Conceptual Explanation: Regressive taxes, such as sales taxes, place a heavier relative
burden on individuals with lower incomes.
6. What is the primary objective of a ‘Foundation Program’ in state school finance?
A. To eliminate the use of local property taxes entirely
B. To ensure every student has access to a minimum level of educational expenditure
C. To reward districts with high tax efforts with extra funding
D. To fund only capital outlay and infrastructure projects
Answer: B
Conceptual Explanation: The Foundation Program aims to guarantee a base level of
funding per student, usually requiring a minimum local tax effort.
