EDUC 648 QUIZ 3: REVENUE—LOCAL
VS. STATE CONTROL. EXAM
QUESTIONS AND ANSWERS
1. The legal doctrine of ‘fiscal neutrality,’ established in Serrano v. Priest, primarily asserts
which of the following?
A. State funding must be equal across all districts regardless of student needs.
B. Local property taxes must be abolished in favor of a state income tax.
C. The quality of a child’s education should not be a function of the wealth of their
neighbors.
D. The federal government is responsible for equalizing local revenue disparities.
Answer: C
Conceptual Explanation: Fiscal neutrality means that the level of spending for a child’s
education should not be determined by the property wealth of the local school district.
2. In San Antonio Independent School District v. Rodriguez (1973), the U.S. Supreme Court
ruled that:
A. The U.S. Constitution does not provide a fundamental right to education.
B. Property tax-based funding systems are inherently unconstitutional.
,C. Education is a fundamental right protected by the U.S. Constitution.
D. States must use a ‘Robin Hood’ plan to redistribute local wealth.
Answer: A
Conceptual Explanation: The Court found that while education is important, it is not a
fundamental right under the U.S. Constitution, shifting the battle for equity to state courts.
3. Which funding model provides a fixed amount of state money per pupil, regardless of the
local district’s wealth or effort?
A. Foundation Program
B. Flat Grant
C. District Power Equalizing
D. Full State Funding
Answer: B
Conceptual Explanation: Flat grants provide a uniform amount per student or teacher
unit, offering the least amount of equalization among districts.
4. Under a ‘Foundation Program,’ the state’s primary role is to:
A. Guarantee a minimum level of funding per pupil if the local district makes a required tax
effort.
B. Ensure all districts have the same total per-pupil expenditure.
C. Pay for 100% of all educational costs.
, D. Distribute funds based solely on the number of special education students.
Answer: A
Conceptual Explanation: Foundation programs aim to provide a ‘floor’ or minimum level
of support, requiring a mandatory local tax rate to participate.
5. What is the primary criticism of ‘District Power Equalizing’ (DPE) models?
A. They may result in unequal spending if districts choose different tax efforts.
B. They eliminate all local control over tax rates.
C. They are funded entirely by the federal government.
D. They do not allow for local property taxes.
Answer: A
Conceptual Explanation: DPE focuses on equalizing the ‘yield’ of a tax rate, but if one
district chooses a lower rate than another, per-pupil spending remains unequal.
6. ‘Recapture’ (often called ‘Robin Hood’) provisions involve:
A. Taking local tax revenue from wealthy districts and redistributing it to poorer districts.
B. Providing federal grants to low-performing schools.
C. Increasing state income taxes to lower property taxes.
D. Allowing districts to keep all revenue generated from local levies.
Answer: A
VS. STATE CONTROL. EXAM
QUESTIONS AND ANSWERS
1. The legal doctrine of ‘fiscal neutrality,’ established in Serrano v. Priest, primarily asserts
which of the following?
A. State funding must be equal across all districts regardless of student needs.
B. Local property taxes must be abolished in favor of a state income tax.
C. The quality of a child’s education should not be a function of the wealth of their
neighbors.
D. The federal government is responsible for equalizing local revenue disparities.
Answer: C
Conceptual Explanation: Fiscal neutrality means that the level of spending for a child’s
education should not be determined by the property wealth of the local school district.
2. In San Antonio Independent School District v. Rodriguez (1973), the U.S. Supreme Court
ruled that:
A. The U.S. Constitution does not provide a fundamental right to education.
B. Property tax-based funding systems are inherently unconstitutional.
,C. Education is a fundamental right protected by the U.S. Constitution.
D. States must use a ‘Robin Hood’ plan to redistribute local wealth.
Answer: A
Conceptual Explanation: The Court found that while education is important, it is not a
fundamental right under the U.S. Constitution, shifting the battle for equity to state courts.
3. Which funding model provides a fixed amount of state money per pupil, regardless of the
local district’s wealth or effort?
A. Foundation Program
B. Flat Grant
C. District Power Equalizing
D. Full State Funding
Answer: B
Conceptual Explanation: Flat grants provide a uniform amount per student or teacher
unit, offering the least amount of equalization among districts.
4. Under a ‘Foundation Program,’ the state’s primary role is to:
A. Guarantee a minimum level of funding per pupil if the local district makes a required tax
effort.
B. Ensure all districts have the same total per-pupil expenditure.
C. Pay for 100% of all educational costs.
, D. Distribute funds based solely on the number of special education students.
Answer: A
Conceptual Explanation: Foundation programs aim to provide a ‘floor’ or minimum level
of support, requiring a mandatory local tax rate to participate.
5. What is the primary criticism of ‘District Power Equalizing’ (DPE) models?
A. They may result in unequal spending if districts choose different tax efforts.
B. They eliminate all local control over tax rates.
C. They are funded entirely by the federal government.
D. They do not allow for local property taxes.
Answer: A
Conceptual Explanation: DPE focuses on equalizing the ‘yield’ of a tax rate, but if one
district chooses a lower rate than another, per-pupil spending remains unequal.
6. ‘Recapture’ (often called ‘Robin Hood’) provisions involve:
A. Taking local tax revenue from wealthy districts and redistributing it to poorer districts.
B. Providing federal grants to low-performing schools.
C. Increasing state income taxes to lower property taxes.
D. Allowing districts to keep all revenue generated from local levies.
Answer: A
