School Finance Exam Questions and
Correct Answers
How is the "foundation budget" for a MA school district calculated? - Answer-A district's foundation
budget is derived by multiplying the number of pupils in 14 enrollment categories by cost rates in 11
functional areas.
Why do some criticize the "adequacy" approach to school finance? - Answer-The "adequacy" approach
dictates that all schools be given equitable funding to provide for their students. Critics say that this is
not occurring, and money is being misused within school districts that do receive funding. Therefore,
equal funding often does not yield equal results in student achievement. Additionally, accounting
systems in place do not track spending in an accessible r logical way, so it is hard to determine where
spending improvements could be made.
What does "level of effort" mean in the context of finance? Why is it significant? - Answer-"level of
effort" is a district's ability to raise funds from property taxes/other fees. This money goes towards
paying for the education of the district's youth. If a district cannot afford
to pay for the minimum budget, the state will fund the rest. If the state cannot afford to fund the rest,
the federal government is then called upon to insure that the minimum budget is funded.
What are arguments for and against eliminating the local role in funding schools? - Answer-Local role
provides a strong sense of ownership and a deeper connection to insuring school success, something
that would be missing if the state government took control. State funding would lead less autonomy for
districts. State regulations could also get in the way of effective prolem-sovling. However, some
communities would be unable to support adequate schools out of local revenue.
Correct Answers
How is the "foundation budget" for a MA school district calculated? - Answer-A district's foundation
budget is derived by multiplying the number of pupils in 14 enrollment categories by cost rates in 11
functional areas.
Why do some criticize the "adequacy" approach to school finance? - Answer-The "adequacy" approach
dictates that all schools be given equitable funding to provide for their students. Critics say that this is
not occurring, and money is being misused within school districts that do receive funding. Therefore,
equal funding often does not yield equal results in student achievement. Additionally, accounting
systems in place do not track spending in an accessible r logical way, so it is hard to determine where
spending improvements could be made.
What does "level of effort" mean in the context of finance? Why is it significant? - Answer-"level of
effort" is a district's ability to raise funds from property taxes/other fees. This money goes towards
paying for the education of the district's youth. If a district cannot afford
to pay for the minimum budget, the state will fund the rest. If the state cannot afford to fund the rest,
the federal government is then called upon to insure that the minimum budget is funded.
What are arguments for and against eliminating the local role in funding schools? - Answer-Local role
provides a strong sense of ownership and a deeper connection to insuring school success, something
that would be missing if the state government took control. State funding would lead less autonomy for
districts. State regulations could also get in the way of effective prolem-sovling. However, some
communities would be unable to support adequate schools out of local revenue.
