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NOTICE: The project that is the subject of this volume was approved by the Governing Board of the National Research Council, whose members are drawn from the councils of the National Academy of Sciences, the National Academy of Engineering, and the Institute of Medicine. The members of the committee responsible for the volume were chosen for their special competences and with regard for appropriate balance.
This volume was supported by Contract No. RF95194001 between the National Academy of Sciences and the U.S. Department of Education. Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the organizations or agencies that provided support for this project.
Library of Congress Cataloging-in-Publication Data
Making money matter : financing America’s schools / Helen F. Ladd and Janet S. Hansen, editors ; Committee on Education Finance, Commission on Behavioral and Social Sciences and Education, National Research Council.
p. cm.
Includes bibliographical references and index.
ISBN 0-309-06528-3 (casebound)
1. Education—United States—Finance. 2. Educational productivity—United States. 3. Educational equalization—United States. 4. Educational change—United States. I. Ladd, Helen F. II. Hansen, Janet S. III. National Research Council (U.S.). Committee on Education Finance.
LB2825+
379.1'1'0973—dc21
99-050424
Suggested citation:
National Research Council (1999). Making Money Matter: Financing America's Schools. Committee on Education Finance, Helen F. Ladd and Janet S. Hansen, editors. Commission on Behavioral and Social Sciences and Education. Washington, DC: National Academy Press.
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Copyright 1999 by the National Academy of Sciences. All rights reserved.
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COMMITTEE ON EDUCATION FINANCE
HELEN F. LADD (Cochair),
Terry Sanford Institute of Public Policy, Duke University
THOMAS SOBOL (Cochair),
Teachers College, Columbia University
ROBERT BERNE, Vice President for Academic Development,
New York University
DENNIS N. EPPLE,
Graduate School of Industrial Administration, Carnegie Mellon University
SUSAN H. FUHRMAN,
Graduate School of Education, University of Pennsylvania
EDMUND W. GORDON,
Department of Psychology, Yale University (emeritus)
JAMES W. GUTHRIE,
Peabody College, Vanderbilt University
STEPHEN P. KLEIN, RAND,
Santa Monica, California
DIANA LAM,
Providence Public School District, Providence, Rhode Island
LAURENCE E. LYNN, JR.,
School of Social Service Administration and Harris Graduate School of Public Policy Studies, University of Chicago
GARY NATRIELLO,
Teachers College, Columbia University
ALLAN R. ODDEN,
School of Education, University of Wisconsin-Madison
TED SANDERS, President,
Southern Illinois University
ROBERT M. SCHWAB,
Department of Economics, University of Maryland-College Park
KENNETH A. STRIKE,
Department of Education, College of Agriculture and Life Sciences, Cornell University
STEPHEN D. SUGARMAN,
School of Law, University of California at Berkeley
JOAN E. TALBERT,
School of Education, Stanford University
AMY STUART WELLS,
Graduate School of Education and Information Studies, University of California, Los Angeles
JANET S. HANSEN, Study Director
ROSEMARY CHALK, Senior Program Officer
NEAL D. FINKELSTEIN, Senior Program Officer
ANNE MARIE FINN, Research Associate
THOMAS A. HUSTED, Senior Consultant
PAUL A. MINORINI, Senior Consultant
NATHANIEL TIPTON, Senior Project Assistant
PANEL ON SPECIAL EDUCATION FINANCE
DAVID W. BRENEMAN (Chair),
Curry School of Education, University of Virginia
MARY-BETH FAFARD,
Northeast and Island Regional Educational Laboratory, Brown University
MARGARET E. GOERTZ,
Consortium for Policy Research in Education, University of Pennsylvania
MARGARET J. McLAUGHLIN,
Institute for the Study of Exceptional Children and Youth, University of Maryland
THOMAS B. PARRISH,
Center for Special Education Finance, American Institutes for Research, Palo Alto, California
Acknowledgments
Many people contributed in important ways to the completion of this report; and we are most grateful for their efforts. First, we appreciate the support provided by the study's sponsor, the U.S. Department of Education, and the individuals within the Office of Education Research and Improvement with whom we worked during the project: Kent McGuire, assistant secretary, James Fox, and Duc-Le To.
The committee was assisted in its review of the voluminous literature related to education finance by a number of individuals who prepared background papers. We previously published eight of these papers related to issues in equity and adequacy.1 Authors (who were not also committee or staff members) included Melissa C. Carr, William D. Duncombe, William N. Evans, Margaret E. Goertz, Sheila E. Murray, Richard Rothstein, Leanna Stiefel, and John M. Yinger. These papers, plus the comments of reviewers selected by the National Research Council (NRC) in accordance with its report review procedures, were extremely helpful in preparing the analysis in this report. We again thank the reviewers of the previous volume: John Augenblick, Dominic Brewer, William Buss, David Figlio, Eric Hanushek, David Monk, Richard Murnane, Lawrence Picus, Andrew Reschovsky, Julie Underwood, and Arthur Wise.
Unpublished background papers that also greatly assisted us in our work were prepared by Ronald Fisher, Kenneth Godwin, Laura Hamilton, Jane
Hannaway, Jennifer Hochschild, Jack Jennings, Frank Kemerer, Therese McGuire, Michele McLaughlin, and Cecilia Rouse.
In addition to the many scholars whose written work informed our deliberations and is acknowledged in the report's reference list, many individuals met with us to extend our understanding of specific issues.
A technical panel on special education, set up by the committee, met four times over a year to review the particular issues involved in financing education for students with disabilities. We thank panel chair David Breneman and members Mary-Beth Fafard, Margaret E. Goertz, Margaret J. McLaughlin, and Thomas B. Parrish for their hard work and excellent analysis.
We also benefited from the advice of 23 researchers and practitioners who joined us for a one-day workshop to discuss data needs related to education finance. Participants included John Augenblick, Dominic Brewer, Jay Chambers, Matthew Cohen, Thomas Downes, Jerry Fastrup, David Figlio, Pascal Forgione, William Fowler, Jr., Michael Garet, David Grissmer, Nancy Heiligman, Linda Hertert, Philip Kaufman, David Monk, Martin Orland, Lauri Peternick, Lawrence Picus, Paul Planchon, Richard Rothstein, Leanna Steifel, Duc-Le To, and Eugenia Toma. In addition, William Clune, Ronald Ferguson, Christopher Jencks, and William Taylor joined the committee to discuss issues of adequacy and equity and student achievement.
The report was reviewed in draft form by individuals chosen for their diverse perspectives and technical expertise, in accordance with procedures approved by the NRC's Report Review Committee. The purpose of this independent review is to provide candid and critical comments that will assist the institution in making the published report as sound as possible and to ensure that the report meets institutional standards for objectivity, evidence, and responsiveness to the study charge. The review comments and draft manuscript remain confidential to protect the integrity of the deliberative process.
We wish to thank the following individuals for their participation in the review of this report: Christopher Cross, Council for Basic Education, Washington, D.C.; William H. Danforth, Chairman, Board of Trustees, Washington University, St. Louis; G. Alfred Hess, Jr., School of Education and Social Policy, Northwestern University; Caroline Hoxby, Department of Economics, Harvard University; James A. Kelley, National Board for Professional Teaching Standards, Southfield, Michigan; Cora Marrett, Vice Chancellor for Academic Affairs and Provost, University of Massachusetts, Amherst; David H. Monk, Dean of the College of Education, Pennsylvania State University; Anita A. Summers, Wharton School, University of Pennsylvania; David Tyack, School of Education, Stanford University; and James H. Wyckoff, Rockefeller College of Public Affairs and Policy, University at Albany, New York.
Although the individuals listed above have provided constructive comments and suggestions, it must be emphasized that responsibility for the final content of this report rests entirely with the authoring committee and the institution.
Finally, we wish to express our appreciation for the efforts of the staff at the NRC in supporting the committee's deliberations and in preparing this report for publication. Alexandra Wigdor, director of the Division on Education, Labor, and Human Performance, provided valuable guidance throughout the project. Rosemary Chalk served as staff for the technical panel on special education as well as chief editor of the previously published volume of papers on education equity and adequacy. Neal Finkelstein, Thomas Husted, and Paul Minorini provided analytical support on school finance, economic, and legal issues, respectively. Anne Marie Finn brought her incomparable organizational skills to the important tasks of organizing and managing the project library, preparing briefing notes for the committee, checking the accuracy of facts and references in the report, and overseeing final preparation of the manuscript for publication. Sharon Vandivere and later Nat Tipton provided administrative support for the committee, both in arranging its meetings and in preparing this and the earlier published volume. The report also benefited from the editorial attention of Christine McShane. The committee extends its sincere thanks and appreciation to all those who assisted us in our work.
Helen F. Ladd, Cochair
Thomas Sobol, Cochair
Janet S. Hansen, Study Director
Committee on Education Finance