Foundations of Education 12th Edition

Ornstein Test Bank

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Chapter 8: Financing Public Education

ESSAY

1. Federal aid to education initially was provided through a number of isolated, unrelated programs.
More recently, under No Child Left Behind, there has been an effort to develop a broadly conceived
national plan for education. What are the reasons for the federal government's becoming more
involved in education? Provide examples of federally funded programs to substantiate your arguments.

ANS:
Education, in accordance with the United States Constitution, has been seen as a state responsibility,
so historically the role of the federal government has been very limited. The late 1950s through the
1970s saw an expansion of special programs targeted for specific purposes. After retrenchment in the
1980s, there were new efforts to coordinate programs nationwide, as is evidenced most recently in No
Child Left Behind, which has specifically targeted student academic achievement, school
accountability, and teacher quality.

2. From the 1980s to the present, citizens and governmental representatives have taken increasing interest
in holding educators accountable for their actions. Discuss how educators have demonstrated this
accountability, and identify related issues.

ANS:
The primary means of demonstrating accountability has been to report results (student test scores) and
the costs associated with those results. Evaluation of teachers also has been a means of demonstrating
accountability. Under NCLB, schools must demonstrate "adequate yearly progress" in student
academic achievement using accepted achievement tests. School principals must notify parents if their
child's teacher is not highly qualified. For schools that fail assessments, there is the threat of
reconstitution or state takeover.

3. Articulate what potential problems may develop when school districts rely on property taxes as school
revenue sources?

ANS:
When property tax trends change and the value of the houses reduce, the economy takes a turn and can
no longer support the per pupil ratio of dollars that must fund the building, student services, and staff.

MULTIPLE CHOICE

1. The level of government that pays the highest percentage of total school revenues is the
a. local level. c. state level.
b. national level. d. federal level.
ANS: C

2. In a recent survey, local school boards responded that their number-one concern was
___________________.

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 Test Bank 8-2

a. community support for schools c. curriculum

b. budget/funding d. assessment
ANS: B KEY: WWW

3. The level of government that relies on the property tax as the main source of income is
a. the local level. c. the federal level.
b. the state level. d. all of the above.
ANS: A

4. The property tax rate is expressed in

a. dollars. c. percentages.
b. mills. d. ratios.
ANS: B KEY: WWW

5. Which tax makes up more than 75 percent of local school revenue?

a. state income tax c. sales tax
b. property tax d. excise tax
ANS: B

6. ______________taxes suggest that the greater the income or property worth, the more one should pay
in taxes.
a. Progressive c. Income
b. Regressive d. Property
ANS: A KEY: WWW

7. Asbury Elementary School needs an after-school child-care center. Of the following types of revenue,
which is best suited (and perhaps easiest to attain) for support of this project?
a. increased state income tax c. user fees
b. a new sales tax d. increased property tax
ANS: C

8. Differences in the total expenditures per pupil vary among districts in each state primarily because of
differences in revenue generated from
a. income taxes. c. sales taxes.
b. property taxes. d. user fees.
ANS: B KEY: WWW

9. Municipal overburden is a term used to indicate

a. high financial demands for a variety of public services.
b. providing services for high-income areas.
c. limited community involvement in the city.
d. too many administrators in the city government.
ANS: A
 Test Bank 8-3

10. Low-income families would consider a sales tax on food to be a

a. fair tax. c. progressive tax.
b. municipal overburden. d. regressive tax.
ANS: D KEY: WWW

11. Property tax accounts for more than ______________of school funding nationwide.
a. 27% c. 77%
b. 57% d. 17%
ANS: C

12. What is the primary purpose of assessing user fees in a school environment?
a. to collect an additional tax revenue
b. to offset shrinking revenues from traditional sources
c. to replace property tax
d. because there is no other source
ANS: B KEY: WWW

13. State lotteries, a recently tapped funding source for schools,

a. are found in all 50 states.
b. are a progressive tax because the wealthy utilize them more than the poor.
c. contribute a minimal amount of a state's revenue for education.
d. bridge the gap whenever other sources of state revenue fall short of full funding.
ANS: C

14. To accurately determine the degree of support a state gives education, one must look at the per-pupil
expenditure and the
a. illiteracy rate. c. per capita income.
b. income tax rate. d. sales tax rate.
ANS: C

15. Differences in local revenues from one school district to another, and subsequent uneven contributions
to funding for public schools, can best be explained by differences in
a. property values and the rate at which real estate is taxed.
b. the average income of the citizens of the district.
c. the average age of the citizens of the district.
d. how efficiently sales taxes are collected within the district.
ANS: A

16. If adjacent school districts have dramatically different levels of funding for education on a per-pupil
basis, this can probably best be explained by differences in
a. each district's level of commitment to the quality of public education.
b. the value of property, and the taxes assessed on real estate, within the districts.
c. personal income within the districts.
 Test Bank 8-4

d. the sales tax rate within the districts.

ANS: B KEY: WWW

17. Some of the largest growing populations of students are ___________, who often require additional
funding per student in order to provide services.
a. English language learners c. students with disabilities
b. students in poverty d. all of the above
ANS: D

18. As the proportion of people over sixty-five increases, it is likely that there will be
a. decreasing emphasis on the physical education curriculum.
b. decreasing conflict about school goals.
c. increasing resistance to school budget increases.
d. increasing conflict over curricular content.
ANS: C

19. Districts with a high number of students with special needs would lobby for state educational funding
based on the
a. flat-grant model. c. power-equalization plan.
b. foundation plan. d. weighted student plan.
ANS: D

20. Currently, ____________states have sales tax that contributes to the public school system.
a. 16 c. 36
b. 26 d. 46
ANS: D

21. Many state courts have ruled that inequities in educational expenditures in districts throughout the
state are
a. to be remedied by the state department of education.
b. created by the sales tax.
c. unconstitutional.
d. all of the above.
ANS: C

22. School financing arrangements are most vulnerable to being declared unconstitutional in
a. State 1, where taxpayers claim they cannot afford any further increases in property taxes.
b. State 2, where there is no state income tax.
c. State 3, where annual revenues in all districts fall below projected needs.
d. State 4, where there are substantial differences in districts' average spending per student.
ANS: D
 Test Bank 8-5

23. Your state is trying to implement a hotly contested new finance plan that would transfer funds from
wealthy districts to poor ones. Those who support the plan probably base their arguments on which of
the following issues?
a. equity c. accountability
b. decentralization d. charter schools
ANS: A

24. State court decisions affecting financial support of public education have sent the message that
a. if budgets reflect blatant discrepancies from one district to another within a state, the
federal government may intervene.
b. discrepancies in quality of education are not related to funding.
c. the level of financial support for public education clearly does make a difference in the
quality of education.
d. a national system of providing for the financial support of public education is necessary to
alleviate discrepancies in funding.
ANS: C

25. The largest portion of revenue for the schools is generated from _____________________.
a. personal income tax c. property tax
b. sales tax d. assessment tax
ANS: A

26. Given the history of federal funding of education, it is most accurate to say that
a. the federal government has never had a noticeable impact on public schools through
allocation of financial support.
b. the federal government has always supported public education financially, but this has
only recently been noticed because of budget cuts.
c. federal funding of public education has generally been tied to special projects, special
legislation, or issues of national concern such as desegregation and, more recently,
academic achievement.
d. states have consistently been able to refuse federal financial support of public education
rather than face the intrusion of the federal government in a state responsibility.
ANS: C

27. The shift from categorical grants to block grants in the 1980s resulted in
a. more funding for education from the federal level.
b. funding decisions shifting from the federal level to the state level.
c. more rules and regulations from the federal Department of Education.
d. greater emphasis on funding specific federal programs.
ANS: B

28. The No Child Left Behind requirement that teachers be highly qualified is frustrating to state and local
school authorities because
a. the requirements are so extreme that very few teachers can meet the standard, thus creating
teacher shortages.
 Test Bank 8-6

b. state departments of education cannot agree on what is meant by "highly qualified."

c. the new requirements apply only to new teachers.
d. federal funding to states has lagged behind what the states need to cover the cost of
implementing the requirements.
ANS: D KEY: WWW

29. Taxpayer resistance has called for educators to be more

a. accountable for the success of programs. c. innovative in program design.
b. cautious in talking with legislators. d. realistic about teacher salary increases.
ANS: A

30. Teachers and administrators are being held accountable for their actions because of pressure primarily
from
a. parents. c. school boards.
b. principals. d. students.
ANS: A

31. Additional taxes that can be applied to education include

a. excise, gift tax, severance tax, and corporate income tax.
b. excise tax and corporate tax.
c. gift and excise tax.
d. severance tax.
ANS: A

32. When parents send their children to private schools, tuition tax credits would
a. allow parents to claim a tax deduction for part of the tuition.
b. enable public schools to claim a tax credit for the loss of enrollment.
c. maintain even funding for private and public schools.
d. require the private schools to report the total tuition generated.
ANS: A

33. Recent reform efforts in school funding, such as tuition tax credits, voucher plans, and choice plans,
are evidence that
a. there is growing concern that tax revenues will never be high enough to fund public
schools adequately.
b. no tax plan is fair, and the public should have the freedom to dictate where tax revenues
are spent.
c. private schools are inherently better than public schools.
d. there is growing attention to, and public support for, competition among schools so that
parents can identify and support the best schools and exert more control over where their
children go to school.
ANS: D

34. The purpose of educational vouchers is to

 Test Bank 8-7

a. encourage educational reform in private schools.

b. facilitate the collection of taxes used to support schools.
c. initiate tax reform in the states.
d. provide a choice of schools for students.
ANS: D

35. One of the increasing trends in funding for education is the growth of the ___________ population,
who may no longer have a vested interest in increasing taxes for school.
a. bilingual c. young couples
b. senior citizen d. migrant
ANS: B KEY: WWW

36. Research data on student performance in large and small classes indicates that student performance is
a. about the same in both large and small classes.
b. better in large classes.
c. better in small classes.
d. none of these; that is, it is impossible to say because results are contradictory.
ANS: C

37. The school infrastructure consists of the

a. community support for schools.
b. personnel in the state department of education.
c. physical facilities of the school.
d. tax base that supports the school.
ANS: C

38. Elementary and secondary education represents approximately ______percent of the nation’s annual
gross domestic product.
a. 4 c. 16
b. 8 d. 32
ANS: A

39. The _____________ Supreme Court declared that the entire state educational system of funding
schools with property tax was unconstitutional, which prompted significant reform.
a. California c. New York
b. Michigan d. Kentucky
ANS: D KEY: WWW

40. One of the driving forces behind the federal government increasing funding for education was the
__________________.
a. launch of the Sputnik satellite in 1957 c. launch of the Space Shuttle
b. segregation legislation d. Civil Rights Act of 1964
ANS: A
 Test Bank 8-8

SHORT ANSWER

1. What are the criteria for evaluating a tax? Why are these criteria so important?

ANS:
A tax should (a) not cause unintended economic disorders, (b) be equitable, (c) be collected easily, and
(d) be responsive to changing economic conditions. The criteria are important because they are a guide
for devising means of taxation that will generate the needed revenue without creating additional
problems.

2. How is property tax calculated?

ANS:
The market value of a property is first determined. Then the market value is converted into an assessed
value, which in most cases is usually one-fourth or one-third of the market value. Then the property
tax rate, expressed in mills, (dollars of tax per thousand dollars of assessed value) is multiplied by the
assessed value.

3. What failures may occur with the current method of calculation of property tax?

ANS:
A lack of uniformed valuation may lead people owning equivalent properties to pay different taxes.

4. Why do some large cities have difficulty financing education?

ANS:
Property taxes are usually high there, which results in some businesses and middle-income residents
leaving for the suburbs. Then the tax base becomes even smaller for the same amount of services,
including education that must be funded. Large cities are also plagued by municipal overburden, which
is caused by a high population density and a high proportion of disadvantaged and low-income
citizens.

5. What are the positive features of the sales tax?

ANS:
Sales taxes rate quite well on the criteria for taxes. They are easy to administer and collect. When food
and prescription medicine are not included, sales taxes meet the criterion of equity. They are also
responsive to changing economic conditions.

6. Why is the flat-grant model of state aid to local schools characterized as "the most unequal" method of
financing schools?

ANS:
 Test Bank 8-9

This model simply provides aid to local school districts based on a fixed amount of funds multiplied
by the number of students in attendance in the district's schools. This does not take into account
special circumstances that exist among school districts in the state, such as the number of students with
special needs, the percentage of low-income students, special programs, and the wealth of the school
district and its ability to raise revenue.

7. How might an increasingly larger proportion of elderly people affect educational funding?

ANS:
Older people who no longer have children in school are generally more resistant to taxes that support
schools. As that part of the population increases, the resistance to increasing school funding is likely to
increase.

8. What conclusions can be drawn from court rulings about the financing of public education?

ANS:
Many state courts have ruled that inequities in educational expenditures are unconstitutional if they
result in large disparities in per-pupil expenditures based on wealth differences among school districts.
These disparities often are the result of differences in property taxes. States need to do more to close
the gap between wealthy and low-income school districts.

9. What benefits do contracts for exclusive products rights have on a district?

ANS:
The potential to have large fees generated from a contract to sell only the specific brands of items at all
of their events and in the school buildings; the potential to be a “multimillion” dollar deal.

10. What are the arguments against educational vouchers?

ANS:
Opponents maintain that educational vouchers would lead to increased segregation of low-income,
minority, and low-ability students. Critics also claim that public and private schools would be split
along socioeconomic lines and that public schools would have reduced financial support.