EDUC 648 QUIZ 3: REVENUE—LOCAL
VS. STATE CONTROL. EXAM
QUESTIONS AND ANSWERS
1. Which legal principle was primarily established in the Serrano v. Priest (1971) decision
regarding California’s school financing system?
A. Education is a fundamental right under the U.S. Constitution.
B. Fiscal neutrality requires that the quality of a child’s education not depend on the wealth
of the local school district.
C. State governments have no authority to mandate local property tax rates.
D. Federal funding must account for at least 20% of local school budgets.
Answer: B
Conceptual Explanation: Serrano v. Priest established the principle of fiscal neutrality,
asserting that the quality of education should not be a function of local property wealth, but
rather the wealth of the state as a whole.
2. In the context of school finance, what does ‘Horizontal Equity’ refer to?
A. The equal treatment of taxpayers who are in similar economic circumstances.
B. Providing more resources to students with greater needs.
,C. Ensuring all states provide the same amount of federal funding per pupil.
D. Distributing funds based solely on geographic size of the district.
Answer: A
Conceptual Explanation: Horizontal equity refers to the equal treatment of equals,
meaning taxpayers with similar wealth or income should pay similar amounts in taxes for
education.
3. What is the primary characteristic of a ‘Foundation Program’ in state school funding?
A. The state provides a fixed amount per pupil regardless of local effort.
B. All local property taxes are abolished in favor of a state income tax.
C. The state ensures a minimum level of expenditure per pupil if the local district exerts a
specified tax effort.
D. Local districts are prohibited from spending more than the state-mandated minimum.
Answer: C
Conceptual Explanation: A Foundation Program establishes a minimum per-pupil
spending level (the foundation) that the state guarantees, provided the local district levies
a required local tax rate.
4. Which U.S. Supreme Court case ruled that the U.S. Constitution does not require equal
funding across school districts?
A. San Antonio Independent School District v. Rodriguez
, B. Brown v. Board of Education
C. Lau v. Nichols
D. Plyler v. Doe
Answer: A
Conceptual Explanation: In San Antonio v. Rodriguez (1973), the Supreme Court held that
education is not a fundamental right under the U.S. Constitution and that disparities in
funding based on local property taxes do not violate the Equal Protection Clause.
5. What is the ‘Recapture’ mechanism, often referred to as ‘Robin Hood’ plans?
A. Federal government seizing local school buildings for non-payment of debt.
B. Teachers returning a portion of their salary to fund classroom supplies.
C. Districts reclaiming funds from charter schools that have closed.
D. The state taking local tax revenue from wealthy districts and redistributing it to poorer
districts.
Answer: D
Conceptual Explanation: Recapture is a method where a state takes tax revenue from
property-wealthy districts that exceeds a certain limit and redistributes it to property-poor
districts to achieve equity.
VS. STATE CONTROL. EXAM
QUESTIONS AND ANSWERS
1. Which legal principle was primarily established in the Serrano v. Priest (1971) decision
regarding California’s school financing system?
A. Education is a fundamental right under the U.S. Constitution.
B. Fiscal neutrality requires that the quality of a child’s education not depend on the wealth
of the local school district.
C. State governments have no authority to mandate local property tax rates.
D. Federal funding must account for at least 20% of local school budgets.
Answer: B
Conceptual Explanation: Serrano v. Priest established the principle of fiscal neutrality,
asserting that the quality of education should not be a function of local property wealth, but
rather the wealth of the state as a whole.
2. In the context of school finance, what does ‘Horizontal Equity’ refer to?
A. The equal treatment of taxpayers who are in similar economic circumstances.
B. Providing more resources to students with greater needs.
,C. Ensuring all states provide the same amount of federal funding per pupil.
D. Distributing funds based solely on geographic size of the district.
Answer: A
Conceptual Explanation: Horizontal equity refers to the equal treatment of equals,
meaning taxpayers with similar wealth or income should pay similar amounts in taxes for
education.
3. What is the primary characteristic of a ‘Foundation Program’ in state school funding?
A. The state provides a fixed amount per pupil regardless of local effort.
B. All local property taxes are abolished in favor of a state income tax.
C. The state ensures a minimum level of expenditure per pupil if the local district exerts a
specified tax effort.
D. Local districts are prohibited from spending more than the state-mandated minimum.
Answer: C
Conceptual Explanation: A Foundation Program establishes a minimum per-pupil
spending level (the foundation) that the state guarantees, provided the local district levies
a required local tax rate.
4. Which U.S. Supreme Court case ruled that the U.S. Constitution does not require equal
funding across school districts?
A. San Antonio Independent School District v. Rodriguez
, B. Brown v. Board of Education
C. Lau v. Nichols
D. Plyler v. Doe
Answer: A
Conceptual Explanation: In San Antonio v. Rodriguez (1973), the Supreme Court held that
education is not a fundamental right under the U.S. Constitution and that disparities in
funding based on local property taxes do not violate the Equal Protection Clause.
5. What is the ‘Recapture’ mechanism, often referred to as ‘Robin Hood’ plans?
A. Federal government seizing local school buildings for non-payment of debt.
B. Teachers returning a portion of their salary to fund classroom supplies.
C. Districts reclaiming funds from charter schools that have closed.
D. The state taking local tax revenue from wealthy districts and redistributing it to poorer
districts.
Answer: D
Conceptual Explanation: Recapture is a method where a state takes tax revenue from
property-wealthy districts that exceeds a certain limit and redistributes it to property-poor
districts to achieve equity.
