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Title: "Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan"
Authors: Roy, Joydeep
Issue Date: Aug-2004
Series/Report no.: 8
Abstract: The state of Michigan radically altered its school finance system in 1994. This was a legislature-led reform that took place somewhat unexpectedly and without the intervention of any courts. The new plan, called Proposal A, significantly increased state aid to the lowest spending districts. I investigate the impact of Proposal A on distribution of resources and educational outcomes in Michigan. In the process this paper offers a first detailed look at the effectiveness of a legislature-led school finance reform. I find that Proposal A was successful in reducing inter-district spending disparities. The effect on academic performance is more modest, though there is evidence of significant gains by the lowest spending districts in state tests.
Appears in Collections:ERS Working Papers

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