Behind the Numbers: When States Spend More

Liberals and progressives have generally believed that shifting federal
authority for social programs to the states will typically lead to a "race to
the bottom" as states try to attract business and keep taxes down by cutting
expenditures and regulations [see Mary Graham, "Why States Can Do More"]. But a
common trend of the last quarter century has also been a race to the top in
which state policies can become more generous over time and even rival those of
the federal government.

Education is the social enterprise for which state and local governments have
always had almost exclusive responsibility. Public education has never won much
federal support (only 6 percent of spending comes from the federal government,
and at the height of federal involvement in 1979, it was still less than 10
percent), so if there was an inevitable trend in our federal system for
competitive inadequacy, we might expect to see it in the public schools. And we
did see it in the South, until about 1970 when dual school systems were finally
abolished. But since then, the race has been to the top, not the bottom, in
public education. With California being the stark and sole exception, all states
have spent more money on their schools. What is even more surprising is that
historically low-spending states have played catch-up, increasing their
expenditures on schools even more than the average.

It might be supposed that a downward competitive spiral does not apply to
schools because public education benefits the middle class-compared, for
example, to welfare, which helps only the poor. Perhaps state governments are
willing to spend more money on the education of middle-class constituents'
children, but still race to the bottom where the interests of politically less
powerful groups are concerned.

Yet much of the new state investment in public education has been for special
education for the handicapped and for compensatory education for minorities and
the poor. While some (although disproportionately few) of the beneficiaries of
special education programs may come from middle-class families, these are still
not majority-benefiting programs. And while there have been federal mandates and
dollars for both special and compensatory education, most states have increased
spending beyond what the federal government required or would reimburse. Nearly
two-thirds of the states, for example, now supplement federal funds (Title I)
for low-achieving students from poor families, even without a mandated federal
match 1.

Part of the explanation for the growth in state education spending lies in
coalition politics: the effective organization of parents, teachers, and
interest groups (in special education, for example) to demand that state
government invest in education. Yet much of the stimulus for the growth in
education spending has come from state court decisions-often by conservative
judges not necessarily swayed by electoral considerations-and some of these
decisions, requiring higher taxes and more spending in poor districts, have not
been uniformly popular.

States also have invested in education because business and government
believe improved education promotes economic development by providing necessary
skills with which to attract investment. But this explanation is also
incomplete. The biggest destination of new funds, special education, has little
relationship to economic growth. In Texas, the legislature now provides school
districts with additional funds, beyond a standard supplement for children in
poverty, for each pregnant teenager they enroll 2. This group,
while deserving, is hardly central to business's workforce upgrade strategy.

In short, while economic self-interest has certainly played a role, popular
concerns about equity and justice have also influenced state education policies.
And if states have been engaged in a race to the top in education, it may
suggest further examination of whether this instinct has been and can be
mobilized at the state level in other social policy areas.

Kentucky, a poor state, presents an emblematic illustration of how coalition
politics managed to tap both equity and economic development concerns. There,
recent education-spending growth and equalization of spending have both been
well above average. Kentucky benefited from broad-based demand for education
reform, and a set of happy circumstances. In the latter category was the
appointment, in 1980, of Edward Prichard, an "elder statesman" who had been a
New Deal whiz kid and clerk to Felix Frankfurter, to head a committee to examine
the state's higher education. The committee was initially comprised of 30
community activists, many from the League of Women voters, a long with small-
businessmen, African-American community leaders, a few lawyer-politicians, and a
couple of corporate representatives. When the committee had written its report
(recommending, for example, more research capacity at the state university), it
decided, on its own, to reconstitute itself to evaluate elementary and secondary
schools. The committee met once a year in the early 1980s, but in 1984, it
convened a series of town meetings across the state that drew 20,000 citizens
concerned about what was wrong with public schools. Following this, the
committee's director, Bob Sexton, embarked on a speaking tour across the state-
illustrated with posters charting problems like the state's high rates of school
dropouts and teen pregnancy. In 1984, a Louisville Chamber of Commerce luncheon
speaker, an MIT professor, called the state a "Third World country," unable to
compete economically with the rest of the nation because of its inadequate
school system. The speech was widely publicized, and education became the
state's major obsession for the next decade. In 1985, the state's business
leadership council publicly offered to support a corporate tax increase if the
money were earmarked for education.

Meanwhile, a group of 66 property-poor school districts, represented by
former Governor (and Prichard Committee member) Bert Combs, filed an
equalization suit in 1985. The case worked its way through the courts and a
state supreme court's decision in 1989 went far beyond expectations; it not only
ruled against unequal property tax financing, but found the entire system of
education constitutionally inadequate 3. Both massive new funds
and curricular reform would be required to fix it. By the time the decision was
handed down, however, the Prichard Committee, the Chamber of Commerce, and all
the education interest organizations (representing teachers, school boards,
administrators, and parent activists) had reached a consensus on the reforms
that would be needed. A bipartisan coalition in the legislature eventually
enacted them.

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It's difficult to know how state education spending has grown, because
precise measurement tools do not exist. In 1970, for example, state and local
governments spent an average of $883 per pupil on public elementary and
secondary education, ranging from $485 in Mississippi to $1,395 in New York.
(These figures, and those that follow, do not include any funds the states or
school districts received from the federal government.) And there was a regional
pattern to this variation. Even without including Mississippi or New York, other
southeastern states spent an average of $629 per pupil, while other states in
the mid-Atlantic spent $1,025.

These data are of limited use, however, because there is significant
variation in costs between states. Providing education is less expensive in
Mississippi than in New York. Because living costs are lower and there is less
competition from other employers of college-educated professionals, it probably
cost less in 1970 for school districts to hire comparably qualified teachers in
the Southeast than in the mid-Atlantic.

Yet government statistical agencies collect and analyze no "cross-sectional"
data on costs of living, comparable to data they collect on inflation (changes
in the cost of living not from place to place, but from year to year). Partly
this failure results from daunting conceptual problems. An inflation index can
price a relatively fixed "market basket" of goods (although the frequency and
methods of updating it is a subject of some dispute), but a cross-sectional
index would need different market baskets in each state. (Consider, for example,
whether heating costs should have the same weight for Mississippi as for

To estimate relative costs of education in different states, the following
narrative utilizes academic analyses of data initially collected for corporate
personnel departments. There are several such collections, used to determine how
firms should adjust salaries (to purchase a comparable lifestyle) when
executives are transferred from place to place. Using these data to compare
education costs is imperfect, because purchasing patterns of corporate
executives differ from those of schools: Simply because it costs more to rent a
three-bedroom house in one state than in another does not mean it costs more to
hire a high-quality teacher. Nonetheless, the two are probably related; this
appears to be the best available surrogate for a cross-sectional school price

Using these corporate cost-of-living data, we can convert school spending in
each state to "purchasing power parity" equivalents. If we know what each dollar
of a state's per pupil spending can buy in quality and quantity of teachers,
pencils, and school buildings, compared to what an education dollar buys in
Kansas, we can estimate how many "Kansas dollars" another state would have had
to spend to purchase the teachers, supplies, and facilities that its nominal
spending level actually purchased. In these terms, there was a narrower range of
variation. In "Kansas dollars," southeastern states spent, on average, $663 in
1970, compared to $1,092 in the mid-Atlantic states.

To understand how this spending grew in the next 25 years, we must adjust
these spending levels for inflation, estimating how many "1995 dollars" it would
have taken in 1970 to purchase the same education inputs as southeastern states
purchased for $663 and mid-Atlantic states purchased for $1,092 in that year. If
we compare these estimates to actual spending in 1995, we can get a sense of
spending growth.

Again, however, there are data limitations. The Bureau of Labor Statistics
(BLS) produces a consumer price index, based on the purchases of a typical urban
family, but does not produce an index for school input inflation. And there is
no reason to believe that in any state the price of teachers, facilities, and
supplies went up at the same rate as the prices paid by consumers for apples,
used cars, and dresses. Here, the best we can do is a BLS index for all
"services," probably more appropriate for schools than the consumer price index
because services, like schools, are more professional-labor intensive and rely
less on technology than the products purchased by consumers. The BLS services
index is reported for four broad regional areas. Applying these indices, we find
that southeastern states spent, on average in 1970, $3,037 in "real" 1995
purchasing power parity terms, while mid-Atlantic states spent $5,184.

One additional adjustment to these 1970 spending figures is appropriate.
Schools with children from more disadvantaged home environments have to spend
more to provide the same quality of education that they provide to other
children. Education policymakers generally estimate that it costs from 20 to 30
percent more to educate poor children 4. While this is almost
certainly too low an estimate, it is a place to start, especially because we are
here concerned only with state and local funds, and schools receive additional
federal money for disadvantaged children. (More than half of all federal
education spending is for this purpose. 5) Using the 30 percent
estimate, we can adjust downward the 1970 "real" spending figures, based on the
incidence of poverty in each state, because to the extent poverty is present, it
takes more money to provide a comparable quality of education in that state. The
1970 census found a poverty rate of 22 percent in the Southeast, and 10 percent
in the mid-Atlantic region. "Regional Growth Patterns in State and Local Educational Spending, 1970-1995" [below] shows
the results of these adjustments: "need-adjusted real-purchasing-power parity"
per pupil 1970 spending in the Southeast was $2,836, and $5,023 in the mid-

Regional Growth Patterns in State and Local Education Spending, 1970-1995

Per pupil State & Local Spending
1970 (in current $)

Real, Need Adjusted Per pupil State & Local Spending
1970 (in 1995$)*

Real, Need Adjusted Per pupil State and Local Spending
1995 (in current $)**

Real Spending Growth

1970 to 1995

Far West

$1,004 $4,432 $4,263 -4%

Far West (except Cal)

$944 $4,512 $5,683 26%

Great Lakes

$918 $3,967 $6,174 56%

Mid Atlantic

$1,178 $5,023 $7,458 48%

New England

$944 $4,056 $6,019 48%


$888 $3,825 $5,607 47%

Rocky Mountain

$776 $3,842 $4,835 26%


$621 $2,836 $4,864 71%


$666 $3,095 $4,898 58%


$937 $3,461 $6,506 88%

United States

$883 $3,879 $5,468 41%

* Current dollars, adjusted for 1970 regional cost differences, 1970 state poverty, and 1970-1995 regional

* Current dollars, adjusted for 1995 regional cost differences and 1990 state poverty

Sources for data:

(1). State and Local School Spending, 1970-1995: U.S. Department
of Education, National Center for Education Statistics, Common Core
of Data, Revenues and Expenditures of Public Elementary and
Secondary Day Schools, Statistics of State School Systems.

(2). Average Daily Attendance in Public Elementary and Secondary
Schools, by State, 1970-1995: U.S. DOE, NCES, Common Core of Data,
Revenues and Expenditures of Public Elementary and Secondary Day
Schools, Statistics of State School Systems.

(3). Per pupil State and Local Spending, 1970 and 1995, current
$: (3) = (1) / (2)

(4). Inflation Adjustment: Services deflator by census region:
Data for 1978 and 1995 from CPI homepage; series I.D.s: w:
CUUR0400SAS; so: CUUR0300SAS; ne: CUUR0100SAS; nc: CUUR0200SAS; 1970
estimated using regional CPI-Us from 1970 - 78.

(5). Cross sectional (by State) cost adjustments for 1970 and
1995 estimated using:

a - 1981and 1990 data from McMahon, Walter W. and Shao-Chung Chang,
Geographical Cost of Living Differences; Interstate and Intrastate,
Update 1991.
Normal, IL: Cntr for the Study of Educational Finance, Illinois
University, Table 2, p. 13.


b- CPI-U Data by Census region for 1970, 1981, 1990 and 1995.

(6). Poverty Adjustment for 1970 and 1995: Census Data for
Percent of
Population in Poverty, 1969 and 1989.

The same figure also displays similar calculations for 1995 spending
(similarly adjusted for poverty and geographic cost differences), so we can see
what happened in the intervening years. Spending in the Southeast grew 71
percent in this period, while in the mid-Atlantic it increased by 48 percent.
While all states increased their real per pupil spending, spending growth was
highest in the lowest spending states, so the gap narrowed. Poverty in the
Southeast declined in this period (from 22 to 16 percent, as reported in the
1990 census), while it remained unchanged in the mid-Atlantic states. Thus, some
of this narrowing gap is attributable to the fact that southeastern states had
less relative requirement for spending in 1995 than in 1970. But even if we
remove the poverty adjustment, the data show a similar, though less dramatic
pattern: Per pupil spending grew by 60 percent in the Southeast, compared to 44
percent in the mid-Atlantic.

For the nation as a whole, real need-adjusted per pupil spending grew by 41
percent during the last quarter century. To be sure, this increase did not
signify that education has received a growing proportion of national income: The
share of gross domestic product going to education remains unchanged.

And it is also true that the physical facilities of schools show the signs of
inadequate capital investment over the last few decades. The growth of education
spending has been in other areas-average teacher-pupil ratios, for example, have
declined from 22.3 to 17.4 during these 25 years. It would, of course, have been
easier for the lowest spending states to "catch up" if the highest spending
states had stood still. But the highest spending quartile of states saw spending
grow by 44 percent. The fact that the gap narrowed at all reflects considerable
effort in the lowest spending states. In 1970, median per pupil expenditures in
the lowest spending quartile of states was 60 percent of median expenditures in
the highest spending quartile, compared to 66 percent in 1995.

Over the last 25 years, the regions became more equal in their education
spending. The lowest spending regions, the Southeast and Southwest, are much
closer now to the (much higher) national average than they were. The mid-
Atlantic states are more unequal to the rest of the nation, but only because
spending in these states has jumped even more than elsewhere. The Rocky Mountain
states are farther below the national average now than then, but not as far
below as the Southeast and Southwest were in 1970. Again, California is a unique
exception to all of these generally positive trends.


One early impetus for this burst in school spending, predating a more recent
nationwide obsession with economic competitiveness and workforce skills, was a
raft of state court litigation about the inequality of school spending between
districts within a state. In most states, school districts had relied heavily
for funds on local property taxes, so the level of per pupil funds raised by any
district was dependent on the property wealth lying within its boundaries. A
district could make greater effort (a higher tax rate per dollar of assessed
value) than its neighbor, and still have more poorly funded schools. Schools
with the greatest needs (children in poverty) were also often those with fewer
resources-although contrary to conclusions many drew from Jonathan Kozol's book
Savage Inequalities, the pattern has not been consistent. Urban metropolises,
for example, are likely in many states to have both more per pupil property
wealth and more poverty.

This system began to change with a 1971 California Supreme Court decision
(Serrano v. Priest), which found that property-tax-based school finance violated
the federal and state constitutions. In 1973, however, the U.S. Supreme Court
ruled that the equal protection clause of the Constitution did not require
states to equalize school spending, if they deemed local control more important.
The California court then reaffirmed its decision, relying solely on the state
constitution. Similar decisions followed in 14 other states.

Greater equality within states would not necessarily result in greater
equality between states. The early suits did not require states to increase
their school spending, only to equalize, which can be accomplished by capping or
reducing expenditures in rich districts while increasing expenditures in poor
ones. In such states as New Jersey and Texas, some reformers attempted to enact
"Robin Hood" laws to take funds from the rich and give them to the poor school
districts, but these have met with strong political resistance. After such a
scheme was enacted by the legislature in Texas, it was reversed in a 1993
statewide referendum by the overwhelming margin of 63 percent to 27 percent
6. Kansas, on the other hand, disguised its redistribution plan by
simply assuming control of the local property tax system, collecting all
property taxes directly, and making state per pupil grants to
districts.7 In general, however, state legislatures have avoided
conspicuous redistribution and have reacted to equalization pressures by
leveling up, approaching equality by adding money to poor districts while
keeping rich districts whole, or by placing strict limits on the right of rich
districts to further increase spending while poorer districts were catching up.

Some state courts have gone considerably beyond Serrano. Beginning with a New
Jersey decision in 1973,8 state constitutions have been
interpreted to require not only equal resources, but minimally sufficient
resources-it is not enough to be equal if every district spends too little for
an "adequate" education. And the Serrano court had said that the state could, if
it wished, violate the requirement for nominal equality, spending more in
districts where students had special needs because of poverty or other
characteristics. But in other states courts have increasingly ruled that
constitutional equality requires a state to spend more on low-income students
than it spends on the average student. Some courts have gone further and ruled
that a state must compensate districts to equalize any higher cost they may
face-by giving more money to urban districts with higher costs of living, for

The bar is being set very high, perhaps unrealistically so. The Kentucky
Supreme Court described the development of seven "capacities" (sufficient oral
and written communication skills, understanding of governmental processes,
grounding in the arts, and so on) to which all Kentucky children have a
constitutional right.9 The Wyoming Supreme Court ordered the
legislature to define the "best" educational system and cost it out; it went on
to interpret the state's constitution as requiring that "all other financial
considerations must yield until education is funded" under this
standard.10 The Ohio State Board of Education suggests that its
state courts should judge the adequacy of education by whether sophisticated
parents would "be willing to have [their] children educated in any of the 612
school districts" in the state.11 Meeting this standard would end
the well-established American middle-class tradition of moving to the suburbs to
find better schools. But though it is difficult to imagine that this goal will
ever be reached, it has increasingly become the focus of state policies.

Many states have raised school spending (in most cases, with equalization at
higher levels as well) either without court orders or after court decisions
upheld the existing inequalities. Several states that were subject to court-
ordered reform raised spending in advance of court orders, perhaps in
anticipation of them, while other states equalized funding sufficiently to
permit courts to reject challenges. Thus it is difficult to say whether a
litigation strategy on the part of teachers, public-interest groups, and
minority activists played the critical role, or whether a progressive state
political climate was more important. In recent years, business-dominated
coalitions have stimulated many states' education reform efforts, but much of
the increased spending took place prior to this more recent trend.

In the 1990s, most states have pulled back, reducing per pupil spending,
mostly because enrollment has been increasing very rapidly and total spending
has not kept up. The only states to increase funds thus far in the present
decade by more than 40 percent of their 1970 per pupil amount are Indiana,
Kentucky, and West Virginia. Yet these states had a unique advantage: West
Virginia has been one of the only states with declining enrollment in this
decade, while enrollments in Indiana and Kentucky have been virtually

Of the three states that boosted school funds the most from 1970 to 1995,
Arkansas and West Virginia acted after state court decisions found their
property tax finance system unconstitutional (although in each case, the state's
progressive governors, Bill Clinton and Gaston Caperton, would undoubtedly have
led an education investment campaign in any event). Only Indiana acted without
an adverse court decision. A big increase came in Nebraska, where the courts
upheld the school finance system after the legislature boosted state funding for
schools; here, legislators were motivated mainly by a desire to head off a
taxpayers' revolt over rising local property taxes. Other states that nearly
doubled their real school spending over this quarter century include Connecticut
and Kentucky, where courts overturned property-tax-based systems, as well as
Michigan, Maine, Georgia, and North and South Carolina, where court decisions to
uphold the existing schemes did not dissuade leaders from reforming them.
Alabama and Mississippi also enacted big increases in school spending without
being ordered to do so. Thus, the trend toward higher school spending cannot be
attributed solely to judicial intervention, although the possibility exists in
some states that spending was increased to avoid potential lawsuits.

In California, the Serrano decision was followed by a tax revolt. Voters may
have decided that if they were going to be forced to spend money on other
people's children, they would rather spend no money at all. But elsewhere,
equalization decisions were followed by higher overall taxes and more per pupil
spending. Taxpayer revolts in these states focused on property taxes, and
permitted state governments to assume responsibility for school funding with
sales, income, or business taxes. One recent academic study calculated that, in
the aftermath of court-ordered reform, states increased spending in the poorest
districts by 12 percent, in the median district by 8 percent, and left spending
unchanged in the wealthiest districts.12

Michigan's recent experience illustrates the complexities of school finance
reform. Twice, in 1973 and 1984, the state's supreme court upheld a school
finance system that was among the nation's most dependent on property taxes
(which provided two-thirds of all school funds). Voters in 1989 had rejected a
proposal for the state to take over the school finance system by raising sales
taxes.13 By 1993, rich districts like Bloomfield Hills were
spending nearly $11,000 per pupil, while poor rural districts spent barely
$3,000.14 Then, a small, rural, low-property-wealth district in
the northern tip of the state voted to close its public schools rather than
further raise its tax rate. Embarrassed, Republican Governor John Engler,
supported by both Democratic and Republican legislative leaders,15
agreed to substantially replace the local property tax system with state funds,
to be raised by a tripling of the state cigarette tax and an increase in the
state sales tax rate from 4 to 6 percent. The tax hike was submitted to a
referendum, with the threat that if the proposal was defeated, the legislature
would instead raise the state income tax. (With food and heating fuel exempt,
the sales tax was not fully regressive, but liberal groups like the teachers'
union, allied with the tobacco industry, opposed the sales tax hike in favor of
the income tax proposal.16 The field coordinator for the
referendum campaign, however, was a teachers' union lobbyist, on
loan.17) The referendum passed with 69 percent of the vote, and
Michigan suddenly had one of the most state-dependent school finance systems in
the nation, with nearly 80 percent of school funds coming from the

Michigan's new system immediately raised per pupil spending in the poorest
districts by one-third. To reduce intrastate inequality further, it also
prohibited such rich districts as Bloomfield Hills from raising their local
property taxes more than 1.5 percent a year; yet Bloomfield Hills voters also
voted for the new proposal by an 88 percent margin.19 This year
the legislature added funds to reduce class sizes in inner-city schools and to
pay for all-day kindergartens for children "at risk."20

There has been no uniform pattern to the political motivation and economic
conditions of these changes. As noted, California has been an exception, perhaps
because of conservative control of the statehouse during much of the period when
the number of immigrants and poor people was soaring rapidly. Yet the Republican
establishments in New York and Texas have reacted with much less stinginess to
the new immigration wave. And perhaps California exceptionalism will be only
temporary. This year, after California finally emerged from a recession that
ended much earlier elsewhere, the state began a big new investment program in
education (a program that would not be reflected in the 1995 data used in the
foregoing analysis). Utilizing an unexpected budget surplus from revived state
economic growth, the Republican governor and the bipartisan legislative
leadership agreed to fund the reduction of class sizes to 20 in grades K-3.


Since the New Deal, American liberal intellectuals have focused their policy
energy almost entirely on the federal government. In the mid-1970s, believing
that this focus was incomplete, a small group of state and local liberal
political activists organized the National Conference on Alternative State and
Local Public Policy to develop and apply progressive policy ideas. Its leaders
were Colorado state treasurer Sam Brown, who had made the first efforts to use
criteria of social responsibility in the investment of state funds; North Dakota
tax commissioner Byron Dorgan; Boston city councilman Barney Frank; and New York
local school board member Ruth Messinger, among others. For a half dozen years
or so, the conference flourished, organizing meetings, developing policy, and
recruiting progressive-minded local and state officials. Its emphasis was on
public investment, economic development, and state budget policy, but there was
some interest in education and welfare policy as well. (Some of the early
attempts to subsidize employment for welfare recipients were developed by
conference activists for the first gubernatorial administration of Michael
Dukakis in Massachusetts.) But when Jimmy Carter was elected President, the
attention of the conference leaders again turned to Washington. Brown became
director of the volunteer program ACTION, and Dorgan and Frank went to Congress.
Many of the conference activists took federal appointments. A successor
organization, the Center for Policy Alternatives, endures, but much of the
earlier grassroots orientation has faded away.

Conservatives had similar ideas, as Newt Gingrich's careful nurturing of
local leaders into congressional candidates attests. But conservatives, too, had
their eyes on Washington, so state and local policy has developed over the last
25 years with little ideological coherence, but great creativity.

This long period of neglect by the national political media has left many
liberals ill prepared to understand the consequences of devolution. Yet during
this time, a massive state takeover of public education took place virtually
unnoticed (except by those involved), as local districts have ceded fiscal (and
much policy) control to state government. In recent years, as state governments
have contended with other priorities, there has been a shift back to localities
as a source of revenues in education, but under much tighter state regulation
than ever before. This change in control has been accompanied by much higher
levels of funding and ongoing curricular experimentation and reform. Nothing
resembling a "race to the bottom" has been evident. Perhaps there is a lesson

1 Howell, Penny L. and Barbara B. Miller, 1997. "Sources of Funding for Schools." The Future of Children 18 (forthcoming).

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2 Odden, A., 1993. "School Finance Reform in Kentucky, New Jersey and Texas." Journal of Education Finance, 18 (Spring), 306.

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3 Adams, Jacob E., Jr., 1993. "School Finance and Systemic School Change: Reconstituting Kentucky's Public Schools." Journal of Education Finance, 18 (Spring).

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4 Odden, A., 1993. "School Finance Reform in Kentucky, New Jersey and Texas." Journal of Education Finance, 18 (Spring), 304.

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5 Riddle, Wayne, 1990. Expenditures In Public School Districts: Why Do They Differ? Washington, D.C.: Congressional Research Service, Library of Congress, July 5, 90-322 EPW, p. 24.

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6 Reed, Douglas S., 1997. "Court-ordered School Finance Equalization: Judicial Activism and Democratic Opposition." In William J. Fowler, ed., Developments in School Finance 1996, Washington, D.C.: National Center for Education Statistics, p. 110.

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7 Yinger, John, 1996. Fiscal Disparities and Education Finance. Washington, D.C.: Economic Policy Institute, 25.

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8 Theobald, Neil D. and Lawrence O. Picus, 1991. "Living With Equal Amounts of Less: Experiences of States with Primarily State Funded School Systems." Journal of Education Finance, 17, no. 1 (Summer), 4.

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9 Verstegen, Deborah A., 1997. "Adequacy, Equity and New Directions in School Finance: A Judicial Perspective." Presentation at the American Education Research Association annual meeting, March 24, Chicago.

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10 Verstegen, Deborah A., 1997. "Adequacy, Equity and New Directions in School Finance: A Judicial Perspective." Presentation at the American Education Research Association annual meeting, March 24, Chicago.

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11 Pipho, Chris, 1997. "Finance Potpourri." Phi Delta Kappan, June, 737.

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12 Murray, Sheila E., William N. Evans, and Robert Schwab, 1996. "Education Finance Reform and the Distribution of Education Resources." Mimeographed, March, p. 18.

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13 Harp, Lonnie, 1993. "Broad Coalition in Michigan Backing Tax Reform and Finance Amendment." Education Week, May 26.

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14 Stecklow, Steve and Krystal Miller, 1994. "Michigan's Plan for Financing Schools May Spread, but Not to Certain States." The Wall Street Journal, March 18. The New York Times, 1994. "Rich Are Wary of Michigan's Revolt." The New York Times, March 23

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15 Harp, Lonnie, 1993. "Broad Coalition in Michigan Backing Tax Reform and Finance Amendment." Education Week, May 26.

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16 Celis, William 3rd, 1994. "Michigan Debates What Tax is Best to Pay for Education." The New York Times, March 14. Celis, William 3rd, 1994. "Michigan Votes for Revolution in Financing Its Public Schools." The New York Times, March 17.

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17 Harp, Lonnie, 1993. "Broad Coalition in Michigan Backing Tax Reform and Finance Amendment." Education Week, May 26.

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18 The New York Times, 1994. "Rich Are Wary of Michigan's Revolt." The New York Times, March 23. The New York Times, 1995. "In Michigan, Uncertainty and Unhappiness Over New Method to Finance the Schools ." The New York Times, January 18.

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19 The New York Times, 1994. "Rich Are Wary of Michigan's Revolt." The New York Times, March 23.

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20 Taylor, Ihsan K., 1997. "Mich. Spec. Ed. Decision Spurs Funding Vetoes". Education Week, 1997, Sept 7.

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