State Aid to Offset Fiscal Disparities Across Communities

Bradbury, Katharine L.; Ladd, Helen F.; Perrault, Mark; Reschovsky, Andrew; Yinger, John

doi:10.1086/ntj41791942

Cited by 96 publications

(16 citation statements)

References 6 publications

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“…Furthermore, some research observes the risk-adverse nature of school boards in how they try to maximize their budgets, often not knowing with much certainty what their voters want or will support (Balsdon et al, 2003;Rothstein, 1994). In an influential study, Bradbury, Ladd, Perrault, Reschovsky, and Yinger (1984) examined the predictors of municipal operating expenditures. In looking at the 1980 operating expenditures per capita on public (local school and municipal) services for Massachusetts, excluding transit, they found that significant predictors were the costs because of municipality size (population density, crime rates, amount of older housing, amount of white-collar professional service jobs), resources (local revenues and state and federal funds), and residential income (personal per capita)-as well as total school enrollment.…”

Section: Background: Prior Research On School Capital Fundingmentioning

confidence: 99%

Knowing the Odds

2010

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This study investigates parameters affecting the likelihood of passing school facility construction bonds by local district election. Using statewide data from Michigan, this study analyzes school bond data for urban ( n = 30), suburban ( n = 164), small town ( n = 70), and rural ( n = 241) school districts that held capital improvement bond elections from 2000 to 2005. This analysis found four parameters that were significant in predicting either passage or failure of school bonds: bond amount, number of students enrolled, the number of times the bond was attempted, and district urbanicity. Examining district bond passage rates by urbanicity showed that rural districts have worse chances of passing bond elections than urban and suburban districts and that small-town districts have the worst chances of all.

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Section: Background: Prior Research On School Capital Fundingmentioning

confidence: 99%

Knowing the Odds

2010

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“…Federal fi scal transfers are justifi ed to offset vertical fi scal imbalances that result from the unequal assignment of resources and responsibilities among different tiers of government, address the fi scal disadvantages of sub-national units that arise from low taxable capacity and the high unit cost of providing public services (Buchanan 1950, Oates 1972, Le Grand 1975, Bradbury et al 1984, Rao and Sen 1998, internalise spillovers for the effi cient provision of public goods (Breton 1965, Gramlich 1977 and achieve national policy objectives like a non-distortionary tax system (Oates 1999), or provision of certain merit goods (Musgrave 1961). Without appropriate revenue mobilisation by states themselves, these objectives of equity and effi ciency cannot be accomplished.…”

Section: Introductionmentioning

confidence: 99%

Central Fiscal Transfers and States’ Own-Revenue Efforts in India

Panda

2009

Margin: The Journal of Applied Economic Research

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Using the fixed and random effect panel regression models the paper tries to empirically examine the incentive effects of federal transfers on states’ own-revenue. Per capita resource transfers from the centre are found to be significant and negatively associated with states’ own-revenue, own-tax revenue and own-non-tax revenue in per capita terms, irrespective of choices of models or specification. This possibly indicates that central transfers have a dampening effect on states’ revenue efforts. Further, the incentive criterion for tax effort as used in the Finance Commission devolutions and in the Gadgil formula used by the Planning Commission is not reflected in the system, and it has failed to induce the desired, positive revenue pattern in states. The paper calls for assigning a higher weight to tax effort in the devolution formula and for more effective co-ordination among different channels in designing criteria and incentives.

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“…15 Reduced funding for state-financed social programs can also have indirect fiscal impacts on local governments. For example, econometric evidence exists that concentrated poverty is associated with higher costs of achieving any given level of public safety (Bradbury et al 1984;Ladd and Yinger 1991;Green and Reschovsky 1994). Not only is the incidence of crime higher in areas of concentrated poverty but community attributes associated with poverty, such as high density and poor housing conditions, increase the amount of resources required to provide public safety in these neighborhoods.…”

Section: Implicit Cost Shiftingmentioning

confidence: 99%

The Impact of State Government Fiscal Crises on Local Governments and Schools

Reschovsky

2004

State and Local Government Review

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y historical standards, the recession that started in April 2001 was both short and mild. After a few months of decline, real gross domestic product (GDP) was growing again by early 2002. The economic recovery, however, has been slow and uneven. The national unemployment rate, which was 3.9 percent in December 2000, has remained above 5.6 percent in every month between September 2001 and January 2004. Despite the relatively mild recession, most state governments have been experiencing their worst fiscal crisis since at least World War II (National Governors Association 2002). For three consecutive fiscal years, state governments in most states have had to address large budget deficits. Because many states relied on one-time funds to close these budget gaps, it is likely that they will again face substantial budget gaps for fiscal year 2005 (Boyd 2003).

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State Aid to Offset Fiscal Disparities Across Communities

Cited by 96 publications

References 6 publications

Knowing the Odds

Knowing the Odds

Central Fiscal Transfers and States’ Own-Revenue Efforts in India

The Impact of State Government Fiscal Crises on Local Governments and Schools

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