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dc.contributor.authorBaicker, Katherineen_US
dc.contributor.authorGordon, Noraen_US
dc.description.abstractMany states are under court-order to reduce local disparities in education spending. While asubstantial body of literature suggests that these orders and the resulting school financeequalizations have increased the level and progressivity of state education spending, there islittle evidence on the broader effects of such measures on the change in total resourcesavailable not only for schools, but for other local government programs as well. When statesspend more on education, both state and local budget constraints change. We find that whilemandated school finance equalizations increase both the level and progressivity of statespending on education, states finance the required increase in education spending in part byreducing their aid to localities for other programs. Local governments, in turn, respond to theincreases in state taxation and spending by reducing both their own revenue-raising and theirown spending on education and on other programs. Thus, while state education aid doesincrease total spending on education, it does so at the expense of drawing resources awayfrom spending on programs like public welfare, highways, and hospitals. These findingsprovide insight into the effectiveness of using earmarked funds to achieve redistribution.en_US
dc.publisher|aCenter for Economic Studies and Ifo Institute (CESifo) |cMunichen_US
dc.relation.ispartofseries|aCESifo Working Paper |x1275en_US
dc.subject.keywordschool finance equalizationen_US
dc.subject.keywordstate and local public financeen_US
dc.subject.stwÖffentliche Bildungsausgabenen_US
dc.subject.stwVereinigte Staatenen_US
dc.titleThe effect of mandated state education spending on total local resourcesen_US
dc.typeWorking Paperen_US

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