EDUC 648 QUIZ 3: REVENUE—LOCAL
VS. STATE CONTROL. EXAM
QUESTIONS AND ANSWERS
1. Which legal doctrine asserts that the quality of a child’s education should not be a function
of the wealth of his or her neighbors?
A. Vertical Equity
B. Horizontal Equity
C. Adequacy Doctrine
D. Fiscal Neutrality
Answer: D
Conceptual Explanation: Fiscal neutrality, a concept popularized during the Serrano v.
Priest litigation, posits that a state’s funding system should decouple student expenditure
from local district property wealth.
2. In the context of school finance, what does ‘Horizontal Equity’ primarily refer to?
A. Providing more resources to students with greater needs
B. The constitutional requirement for a ‘thorough and efficient’ system
C. The ability of a district to raise revenue regardless of property values
,D. Equal treatment of equals, meaning students in similar situations receive similar funding
Answer: D
Conceptual Explanation: Horizontal equity focuses on the equal treatment of students
who are considered in similar circumstances, aiming for uniform per-pupil spending.
3. Which landmark 1973 U.S. Supreme Court case ruled that education is not a fundamental
right under the U.S. Constitution?
A. Serrano v. Priest
B. Brown v. Board of Education
C. Abbott v. Burke
D. San Antonio Independent School District v. Rodriguez
Answer: D
Conceptual Explanation: The Rodriguez decision determined that since education is not
explicitly mentioned in the U.S. Constitution, it is not a fundamental right, shifting finance
litigation to state courts.
4. What is the primary characteristic of a ‘Foundation Program’ in state school funding?
A. The state provides an equal amount of money to every student regardless of local
wealth.
B. Local districts have total control over all revenue sources without state interference.
C. The state matches local fundraising efforts dollar-for-dollar.
, D. The state guarantees a minimum level of funding per pupil, provided the local district
levies a required tax rate.
Answer: D
Conceptual Explanation: A Foundation Program establishes a minimum expenditure level
(the foundation) that the state and local district share, usually requiring a minimum local
tax effort.
5. Which tax is the most common source of local revenue for public schools in the United
States?
A. Corporate Income Tax
B. General Sales Tax
C. Excise Tax
D. Ad Valorem Property Tax
Answer: D
Conceptual Explanation: The ad valorem property tax, based on the value of real estate,
remains the bedrock of local school funding, despite its volatility and equity concerns.
6. What is ‘Recapture’ (often referred to as ‘Robin Hood’ plans) in state finance systems?
A. Taking local tax revenue from wealthy districts and redistributing it to poorer districts.
B. The process of seizing property for unpaid taxes.
C. A federal grant program for low-income schools.
VS. STATE CONTROL. EXAM
QUESTIONS AND ANSWERS
1. Which legal doctrine asserts that the quality of a child’s education should not be a function
of the wealth of his or her neighbors?
A. Vertical Equity
B. Horizontal Equity
C. Adequacy Doctrine
D. Fiscal Neutrality
Answer: D
Conceptual Explanation: Fiscal neutrality, a concept popularized during the Serrano v.
Priest litigation, posits that a state’s funding system should decouple student expenditure
from local district property wealth.
2. In the context of school finance, what does ‘Horizontal Equity’ primarily refer to?
A. Providing more resources to students with greater needs
B. The constitutional requirement for a ‘thorough and efficient’ system
C. The ability of a district to raise revenue regardless of property values
,D. Equal treatment of equals, meaning students in similar situations receive similar funding
Answer: D
Conceptual Explanation: Horizontal equity focuses on the equal treatment of students
who are considered in similar circumstances, aiming for uniform per-pupil spending.
3. Which landmark 1973 U.S. Supreme Court case ruled that education is not a fundamental
right under the U.S. Constitution?
A. Serrano v. Priest
B. Brown v. Board of Education
C. Abbott v. Burke
D. San Antonio Independent School District v. Rodriguez
Answer: D
Conceptual Explanation: The Rodriguez decision determined that since education is not
explicitly mentioned in the U.S. Constitution, it is not a fundamental right, shifting finance
litigation to state courts.
4. What is the primary characteristic of a ‘Foundation Program’ in state school funding?
A. The state provides an equal amount of money to every student regardless of local
wealth.
B. Local districts have total control over all revenue sources without state interference.
C. The state matches local fundraising efforts dollar-for-dollar.
, D. The state guarantees a minimum level of funding per pupil, provided the local district
levies a required tax rate.
Answer: D
Conceptual Explanation: A Foundation Program establishes a minimum expenditure level
(the foundation) that the state and local district share, usually requiring a minimum local
tax effort.
5. Which tax is the most common source of local revenue for public schools in the United
States?
A. Corporate Income Tax
B. General Sales Tax
C. Excise Tax
D. Ad Valorem Property Tax
Answer: D
Conceptual Explanation: The ad valorem property tax, based on the value of real estate,
remains the bedrock of local school funding, despite its volatility and equity concerns.
6. What is ‘Recapture’ (often referred to as ‘Robin Hood’ plans) in state finance systems?
A. Taking local tax revenue from wealthy districts and redistributing it to poorer districts.
B. The process of seizing property for unpaid taxes.
C. A federal grant program for low-income schools.
