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Statistical Issues in Allocating Funds by Formula
this evolution created by the often competing goals of increasing educational opportunities and improving financial stability as well as by problems of targeting aid to student needs, ongoing funding formula design and data quality challenges, and the federal role in education.
In the final article, Felizardo Suzara provides an international perspective. Unlike the foregoing articles, his describes a formula that allocates a tax obligation rather than a benefit. He shows how the United Nations (UN) uses formulas to allocate among member states the contributions required to finance its operations. Suzara describes how the UN’s Committee on Contributions prepares the scale of assessments and advises the General Assembly on all aspects of its methodology “with a view to making it simple and transparent, stable and, most importantly, fair and equitable.” In this context, in which capacity to pay can be calculated in a variety of ways, the formula is manifestly the result of extended negotiations and compromises among the participating stakeholders.