Working Paper: NBER ID: w31271
Authors: Eric A. Hanushek; Matthew Joycewirtz
Abstract: School finance court cases have proceeded one or more times in all but two states. Plaintiffs ask the courts to rule that the existing funding formula is unconstitutional under state constitutions, and the defendants call for continuation of the existing finance formula. By compiling and analyzing the universe of such cases, we can accurately describe the nature of the cases, the decisions made, and the long run impact on overall financing of schools. Defendants win a slight majority of decisions with, surprisingly, their victories coming most frequently in low spending states and in low achieving states. And, while plaintiff victories on average yield an immediate increase in funding, they have no influence on long run growth in school spending.
Keywords: school finance; litigation; education policy; funding equity
JEL Codes: H4; I22
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| plaintiff victories (K41) | immediate increases in funding (H84) |
| plaintiff victories (K41) | long-term spending growth (E62) |
| litigation outcomes (K41) | changes in funding (I22) |
| state spending levels (H75) | litigation outcomes (K41) |
| state spending levels (H75) | student achievement (I24) |
| court decisions (K41) | funding patterns across districts (I22) |