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Owner: Heewon Jang
Owner Email: hjang6@ua.edu
Paper Title: Fiscal Federalism and the Progressivity of Within-District Spending in U.S. Public Education
Session Title: Unpacking Education Production Pipeline: Government Spending, Allocation of Funds, and Household Invested
Paper Type: Paper
Presentation Date: 4/13/2024
Presentation Location: Philadelphia, Pennsylvania
Descriptors: Economics of Education, Educational Policy, Finance
Methodology: Quantitative
Author(s): Heewon Jang, University of Alabama; Richard DiSalvo, Princeton University
Unit: SIG-Fiscal Issues, Policy and Education Finance
Abstract: The traditional view in public economics is that local governments in a federal system cannot effectively redistribute resources due to interjurisdictional competition over wealthier taxpayers. However, analyzing the first school-level spending data across the country reveals that within-district spending allocations are generally progressive: school districts typically allocate more spending to schools enrolling a higher number of disadvantaged students within their boundaries. We consider explanations for this unexpected pattern. We identify state and federal policies as key drivers of this within-district progressivity, aligning with the traditional view that redistribution is primarily operated through central governments. Specifically, approximately 83% of the within-district contribution to progressivity can be explained by federal spending and allocations earmarked for special education and English language learning students.
DOI: https://doi.org/10.3102/2107700