A fiscal equity assessment of Indiana's public elementary and secondary school operating expenditures since the implementation of the local levy freeze
Abstract
The purpose of this study was to examine and analyze the fiscal equity of Indiana's school operating expenditures. Specifically, the objective of this study was to answer the following research questions: (1) What is the current degree of fiscal equity in the Indiana public school operating expenditures, and (2) Since the enactment of the property tax levy freeze in 1973, has the degree of fiscal equity in terms of school operating expenditures changed? Chosen for the study was the 1972-73 school year and the 1985-86 school year. The 1972-73 school year preceded the tax levy freeze and the 1985-86 school year contained the latest available data. Examination and analysis of fiscal equity was conducted in two parts: (1) horizontal equity measurements on the school operating expenditures; and (2) fiscal neutrality measurements on the school operating expenditures, the adjusted tax rate, and the adjusted assessed valuation. The horizontal methods selected were the (1) boxplot, (2) coefficient of variation, (3) federal range ratio, (4) Gini coefficient, (5) Lorenz Curve, (6) McLoone index, (7) range, (8) restricted range, (9) standard deviation, and (10) variance. The fiscal neutrality measurements selected were the (1) pupil-weighted Pearson Correlation and (2) data plot. Of the 305 school corporations in Indiana, 303 were examined and analyzed. The 303 school corporations chosen for examination and analysis included 309 taxing districts for the 1972-73 school year and 301 taxing districts for the 1985-86 school year. The horizontal equity measurements revealed that the 1985-86 school year indicated an overall deterioration of fiscal equity. With the exception of the McLoone index, the measurements indicated that the 1972-73 school year was more equitable. The fiscal neutrality measurements indicated that the 1972-73 school year had less of a linear relationship between the (1) school operating expenditures and adjusted tax rate and the (2) adjusted tax rate and adjusted assessed valuation. A decreased linear relationship between the school operating expenditures and assessed valuation was indicated for the 1985-86 school year.
Degree
Ph.D.
Advisors
Wood, Purdue University.
Subject Area
School finance
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