Education Finance and Policy
Units: 12
The purpose of this Heinz course is to introduce professional master’s students to the special problems of financing regional governments in a decentralized federal system with a special focus on public education. The course i] reviews theories of federalism from economic and constitutional perspectives, ii] reviews the evolution of the United States from a confederation to a federation, iii] examines financial and political problems associated with jointure, iv] reviews alternative rationales for public financing and provision of education (k-16), v] analyzes distressed school systems and municipal governments, vi] reviews the international evidence on estimated economic returns and distributional effects of k-16 public education and the use of cost-effectiveness and educational production functions, vii] school budgeting issues, viii] the school property tax, ix] intergovernmental relations and the design of school aid formulas, and x] the measurement and implications of student achievement. These issues are examined from positive and normative perspectives, and through the lens of economics and political economy.
Students taking the course are expected to be conversant in basic statistics and its application on a micro-computer, know something about financial accounting or at least have an interest in it, have had an introductory course in micro-economics, and able to apply statistics and economics to real world problem sets that involve the manipulation of data and administrative records. Students who have had Public Finance will find taking the course more natural because the issues of the proper role of government in a market or mixed economy, the effects of different kinds of taxation on the distribution of income and wealth, and on economic efficiency will be more familiar. Students who have not had Public Finance will likely find it necessary to fill in gaps in their background as the course proceeds, and may have to do supplemental reading. Most required reading will be stored on Blackboard under Notes and Reading Materials, and questions to be discussed in class that pertain to the required reading will also be stored on Blackboard in the same folder.
The course is organized into a series of topical sessions, and will be conducted on a lecture-discussion basis. Students are expected to have read the required reading before class. Students are also expected to own and know how to operate an electronic calculator that is capable of doing x^(a/b).
In this course professional masters students interested in public education will learn how the provision of madatory attendance k-12 education has evolved in the United States and around the world wit special attention to how such education functions in a decentralized federal system. Both key problems in the financing and delivery of k-12 education are reviewed, and considerable attention devoted to such matters as school desegregation, school financial manaagement, the role of the local real estate tax and assessment system in supporting local costs of education, determinants of school learning outcomes, the role of teachers unions and school governance in impacting student learning outcomes. Problem sets using Pennsylvania school and student level data are an important part of the course.
While the course is largely self-contained, the interested student will benefit from having had a basic course in statistics, financial accounting, or permission of instructor. Having taken Public Finance will be helpful, but is not required. Note: students wishing to confirm their financial accounting and financial statement skills should obtain for $29 SolidFooting, and take this short, interactive course over Christmas break. See https://solidfootingaccounting.com/