Chapter 13 FinanceChapter 13 Finance

School Funding and TaxesSchool Funding and TaxesThe power of taxation for education resides with The power of taxation for education resides with

the state limited only by federal and state the state limited only by federal and state constitution.constitution.

State constitutional provisions allow the State constitutional provisions allow the legislature to make provisions for a system of legislature to make provisions for a system of public schools and to tax citizens for support of public schools and to tax citizens for support of public education. public education.

The legislature has the inherent power not only The legislature has the inherent power not only to tax citizens for support of education but also to to tax citizens for support of education but also to distribute funds for the operation of public distribute funds for the operation of public schools.schools.

Tax distribution formulas are determined by the Tax distribution formulas are determined by the legislature based on the needs of various types of legislature based on the needs of various types of school districts and the ability of citizens in those school districts and the ability of citizens in those districts to support public education.districts to support public education.

Legal Challenges to School TaxationLegal Challenges to School Taxation

Serrano v. Priest—Serrano v. Priest—Case that supported equal Case that supported equal protection challenge regarding disparities in protection challenge regarding disparities in funding and that the quality of a child’s education funding and that the quality of a child’s education should not be a function of the wealth of the should not be a function of the wealth of the district in which the child resides. district in which the child resides.

Robinson v. Cahill—Robinson v. Cahill—Case which decided that Case which decided that funding of public schools that rely heavily on local funding of public schools that rely heavily on local property taxes violated the state constitution as property taxes violated the state constitution as well as the equal protection clause of the 14th well as the equal protection clause of the 14th Amendment.Amendment.

Education Act of 1975—Education Act of 1975—mission is to develop a mission is to develop a thorough and efficient system of free public thorough and efficient system of free public schools for all children irrespective of schools for all children irrespective of socioeconomic status or geographical location.socioeconomic status or geographical location.

San Antonio Independent School District San Antonio Independent School District v. Rodriguezv. Rodriguez Mexican American parents in Edgewood filed a class Mexican American parents in Edgewood filed a class

action equity suit on behalf of minority children action equity suit on behalf of minority children throughout the state who were poor and resided in throughout the state who were poor and resided in a school community that had a low property tax a school community that had a low property tax base.base.

The Supreme Court's decision held that a school-The Supreme Court's decision held that a school-financing system based on local property taxes was financing system based on local property taxes was not an unconstitutional violation of the 14not an unconstitutional violation of the 14thth Amendment's equal protection clause. The majority Amendment's equal protection clause. The majority opinion stated that the appellees did not sufficiently opinion stated that the appellees did not sufficiently prove that education is a fundamental right or that prove that education is a fundamental right or that the financing system was subject to strict scrutiny.the financing system was subject to strict scrutiny.

According to the Rodriguez ruling, a funding system According to the Rodriguez ruling, a funding system based on local property tax that provides a based on local property tax that provides a minimum education to all students is constitutional.minimum education to all students is constitutional.

Rodriguez case removed school finance litigation Rodriguez case removed school finance litigation from the federal courts to the state courts.from the federal courts to the state courts.

Post-Rodriguez DecisionsPost-Rodriguez Decisions

Following the Rodriguez decision, courts have been Following the Rodriguez decision, courts have been more inclined to focus their attention on educational more inclined to focus their attention on educational quality as influenced by teacher quality, appropriate quality as influenced by teacher quality, appropriate instructional materials, student achievement scores, instructional materials, student achievement scores, and graduation rates as a means of addressing equal and graduation rates as a means of addressing equal opportunity provision for students. opportunity provision for students.

There is no uniformity among courts in their decisions There is no uniformity among courts in their decisions regarding adequacy of funding for public schools. regarding adequacy of funding for public schools.

State may collect tax funds from wealthy school State may collect tax funds from wealthy school districts and redistribute them to poorer districts to districts and redistribute them to poorer districts to achieve a measure of equity.achieve a measure of equity.

Post-Rodriguez CasesPost-Rodriguez Cases Williams v. California-Williams v. California- A landmark civil rights case which A landmark civil rights case which

challenged the state to ensure quality learning conditions for challenged the state to ensure quality learning conditions for millions of low-income students of color. The millions of low-income students of color. The WilliamsWilliams settlement creates new standards for measuring whether settlement creates new standards for measuring whether schools have the basic conditions students need to learn such as schools have the basic conditions students need to learn such as textbooks, well-trained teachers and clean and safe school textbooks, well-trained teachers and clean and safe school facilities. It also provides opportunities for communities to facilities. It also provides opportunities for communities to become involved and holds school officials accountable for become involved and holds school officials accountable for showing how well schools are meeting these standards.showing how well schools are meeting these standards.

CFE v. State of New York—CFE v. State of New York—The court held that NYC children were The court held that NYC children were not receiving the constitutionally mandated opportunity for a not receiving the constitutionally mandated opportunity for a sound basic education and ruled that the governor and sound basic education and ruled that the governor and legislature had to ensure that every school in New York City has legislature had to ensure that every school in New York City has the resources necessary to provide the opportunity for a sound the resources necessary to provide the opportunity for a sound basic education. basic education.

Montoy v. State of Kansas—Montoy v. State of Kansas—A state district court held that the A state district court held that the state’s school finance plan violates the state constitution. The state’s school finance plan violates the state constitution. The court found that the state failed to distribute resources court found that the state failed to distribute resources equitably among children who are equally entitled to a suitable equitably among children who are equally entitled to a suitable education. education.

Lewis E. v. Spagnolo—Lewis E. v. Spagnolo— A class of schoolchildren residing in East A class of schoolchildren residing in East St. Louis School District 189 challenges the adequacy of the St. Louis School District 189 challenges the adequacy of the education being provided to them in District 189 schools. The education being provided to them in District 189 schools. The courts ruled that that questions relating to the quality of a courts ruled that that questions relating to the quality of a public school education are for the legislature, not the courts, to public school education are for the legislature, not the courts, to decide.decide.