Foundations of Education, Part 12
Question 1: List three main sources of funding at the state level of public schools.
Answer 1: Sales taxes. The average rate of statewide sales tax is 5.5 percent.
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Question 2: List and define the four main methods of state aid for local public schools.
Answer 2: 1) A flat grant model is based on a flat, per-student rate. This method does not take into consideration various factors such as special-needs students and the economic climate of a school or district. 2) A foundation plan offers funding based on an annual minimum per-student match. Low-income schools suffer with this method because they are unable to raise the annual minimums. 3) Power-equalizing plans are based on a school-determined expenditure level. With this plan, lower-income schools are eligible for more state funding than the higher-income school. 4) Weighted student plans are based on a predetermined amount per student; however, different amounts will be given based on a student’s special needs.
Question 3: Define categorical grants and block grants.
Answer 3: Categorical grants were developed in the 1980s for the purpose of providing financial support for specific school programs. This type of funding eventually led to the development of block grants. Block grants provide funding to schools but are not limited to specific programs. However, these, too, are becoming a less-popular funding source as federal agencies have implemented the No Child Left Behind act. This legislation now requires schools to provide evidence of achievement for federal dollars. Those schools indicating achievement receive additional funding. While this funding is available at the federal level, it is typically not efficient and schools continue to rely on local and state funding sources.
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