School Finance Test Questions and
Answers
Major Sources of funding - Answer-local 37%, state 46%, federal 7%
Local financing - Answer-property tax on assessed property value
local tax rate is expressed in mills
user fees
A mill - Answer-1/1000th of a dollar
10 mills equals $10 for each $1000 of assessed value
Municipal overburden - Answer-high population density in cities stresses the financial demands on
public schools
Urban disparities - Answer-If the economic base of a community is less than surrounding areas,
spending per pupil is different.
Does spending make a difference? - Answer-Scholars disagree. Coleman and Jencks say not really, but
Mort says yes.
, What expenditures make a difference in student performance? - Answer-National Institute of Education
15 yr study
1. safe secure environment
2. instructional leadership for principal
3. personnel with high expectations
4. careful monitoring system
5. school-wide emphasis on basic skill instruction
6. classroom time on task
What expenditures not make a difference in student performance? - Answer-higher per pupil
expenditures, smaller classes, new schools, higher teacher salaries, increased instructional expenditures
(Singham, 2005)
State Financing - Answer-10th amendment makes education a state function
Sales Tax #2
Personal Income Tax #1
Lotteries and other
The Problem with Sales Tax - Answer-Low-income people spend a greater percentage of the income on
basic needs
It parallels the economy therefore is not reliably consistent
The problem with lotteries - Answer-Some reduce the general fund of the state
Although it is voluntary, poor people spend more on lotteries
Only 10 to 15 percent of proceeds go to schools
Answers
Major Sources of funding - Answer-local 37%, state 46%, federal 7%
Local financing - Answer-property tax on assessed property value
local tax rate is expressed in mills
user fees
A mill - Answer-1/1000th of a dollar
10 mills equals $10 for each $1000 of assessed value
Municipal overburden - Answer-high population density in cities stresses the financial demands on
public schools
Urban disparities - Answer-If the economic base of a community is less than surrounding areas,
spending per pupil is different.
Does spending make a difference? - Answer-Scholars disagree. Coleman and Jencks say not really, but
Mort says yes.
, What expenditures make a difference in student performance? - Answer-National Institute of Education
15 yr study
1. safe secure environment
2. instructional leadership for principal
3. personnel with high expectations
4. careful monitoring system
5. school-wide emphasis on basic skill instruction
6. classroom time on task
What expenditures not make a difference in student performance? - Answer-higher per pupil
expenditures, smaller classes, new schools, higher teacher salaries, increased instructional expenditures
(Singham, 2005)
State Financing - Answer-10th amendment makes education a state function
Sales Tax #2
Personal Income Tax #1
Lotteries and other
The Problem with Sales Tax - Answer-Low-income people spend a greater percentage of the income on
basic needs
It parallels the economy therefore is not reliably consistent
The problem with lotteries - Answer-Some reduce the general fund of the state
Although it is voluntary, poor people spend more on lotteries
Only 10 to 15 percent of proceeds go to schools
