School Capital Expenditure Rules and Distribution

Abstract

We provide descriptive evidence on the level and within-state distribution of school capital expenditures over the past two decades. We relate these to the fiscal institutions governing capital funding across states. Within-state differences in capital expenditures between the highest-and lowest-income school districts fell considerably following the Great Recession. Spending declined in the highest-income districts, while state support for low-income districts remained stable. Suggestive evidence points to the importance of constraints on districts' ability to raise local funding and the structure of state support in explaining these differences and trends over time.

Political orientation and education investment: an OECD perspective

“…Xie and Kang (2009); Wang and Lu (2022). 32 Biasi et al (2021); Khanal (2018); Mann and Bruno (2022). Previous literature has found that economies concentrated in the industry and services sectors have a high demand for skilled human capital.…”

“…On the other hand, the left political ideology exerts a negative impact on enrollment rates (see Column (3) in Table 3), which also suggests the same. It needs 49 see e.g., Biasi et al (2021); Khanal (2018); Mann and Bruno (2022). 50 see Blundell and Bond (1998).…”

What Works and for Whom? Effectiveness and Efficiency of School Capital Investments Across the U.S

“…Our analysis uses a new panel dataset of U.S. school districts with information on bond elections, school district finances, enrollment and demographics, test scores, and house prices. We link it to the funding rules in place in each district and year, summarized in Biasi et al (2021). In this section we describe each set of variables and their respective sources.…”

“…We study not only whether capital investments matter for students and homeowners in a large sample of U.S. states, but also what matters and for whom. Our analysis makes use of a particular feature of the funding of capital outlays in the U.S.: the use of bonds, subject to electoral approval in local referenda and repaid with 1 revenues from local property taxes (Biasi et al, 2021). To estimate the effect of bond authorization, we compile a novel dataset with information on school bond referenda (including the text of the ballot), student test scores, and house prices for 29 states.…”

“…3 In addition, while state-level school finance reforms have led to a more equal and progressive distribution of current expenditures across school districts, the distribution of capital outlays has remained unequal. Spending on capital outlays varies substantially both across and within states (Biasi et al, 2021, and Appendix Figure A1). The precise rules school districts must follow to raise funds for capital projects differ across states.…”