Financing Education in a Climate of Change, 13th edition

Published by Pearson (January 14, 2019) © 2020

  • Vern Brimley Brigham Young University
  • Deborah A. Verstegen
  • Robert C Knoeppel

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For school finance courses.

A user-friendly, practical examination of the issues impacting education finance

Financing Education in a Climate of Change presents the most up-to-date information in the dynamic field of school finance. Easy-to-understand tables and figures, thought-provoking assignments, and practical budget and accounting examples help readers gain a firm understanding of all facets of financing education.

The 13th Edition adds information on classic and current topics. It looks at the economics of education; recent court decisions; 50-state comparison tables; state taxes; and the ongoing debate about school vouchers, tax credits, church-state issues, and charter schools.

Hallmark features of this title

  • A balanced perspective of the economy of education takes both the student and the taxpayer into consideration, helping readers see big picture concepts.
  • Charts, tables, figures and references clarify concepts using the latest research and information that reflects the influence of public demand, legislative action and the courts.
  • Teaching and learning resources include highlighted key concepts, end-of-chapter assignment projects, and instructor PowerPoints and a test bank.

New and updated features of this title

  • NEW: Material examines the economic benefits of education (Ch. 1), shifting demographics (Ch. 2), equity and adequacy (Ch. 3), funding (Ch. 3 and 4), the federal role in education (Ch. 8), the influence of the courts and legislatures on states and local districts (Ch. 9), the volatile church-state issue (Ch. 10), the business management of schools (Chs. 10, 13, and 14), new teacher salary schedules (Ch. 15), and issues related to State Standards (Ch. 16).
  • NEW: Learning Objectives help readers focus their study and review important concepts.
  • UPDATED: Easy-to-understand 50-state comparison tables detail contrast, similarities, and other important information among all the states along key dimensions in school finance.
  1. The Economics of Education
    • Education as Human Capital
    • Creation of Wealth and Education
    • Education: An Important Industry
    • A Public-Sector Responsibility
    • Economics and Social Progress
    • Economic Benefits of Education
    • Noneconomic Benefits of Education
    • Cost-Quality Relationship in Education: Does Money Matter?
  2. The Need for Adequate Funds
    • Adequacy and the Factors Impacting It
    • Education Deserves High Priority
    • The Public Wants Good Schools
    • The Increasing Costs of Education
    • Spending on Education and the Size of the Enterprise
    • Impacts on the Cost of Providing an Adequate Education
    • What is the Cost of an Adequate Education?
    • A Failure to Provide Opportunity and Associated Costs
    • Society Suffers the Effects of Poor Education
  3. Financing Education Equitably
    • Inequalities in Financing Education
    • Equity: An Objective of School Finance Reform
    • Measures of School District Wealth
    • Income Tax
    • Historical Influences on Equity
    • The Equalization Principal
    • Improving State Equalization Practices
    • Foundation Programs and Variations
    • The Impact of Average Daily Attendance on Equity
    • The Changing Climate and Current School Finance Practices
  4. Patterns for School Finance Systems
    • Developing Patterns
    • Determining the Best Finance Plan
    • Full State Funding
    • District Power Equalization
    • Property Reassessment and Local District Revenues
    • Emphasis on Weighting Factors
    • Principal Types of Weights
  5. Sources of Revenue
    • Education- Financed by Government
    • The Taxation System
    • Characteristics of a Good Tax System
    • Taxes for Education
    • Income Tax
    • Sales Tax
    • Property Tax
    • Excise Tax
    • Severance Tax
    • Other Funding Sources
    • Potential New Taxes
  6. Education: A State Function
    • Early Development of State Responsibility
    • Development of Decentralized Educational Systems
    • Development of School Finance Policies
    • Developmental Stages of School Finance
    • The Varying State Programs
    • State Ability to Support Education
  7. Eroding Local Control
    • Changing Rural-Urban Influence on Education
    • Basic School District Administrative Units
    • The Administration of Local School Districts
    • Advantages of Local Control
    • Fiscal Independence of School Districts
    • Trends in Local Taxation Practices
    • Measures of Local Taxpaying Ability
    • Local, State, and Federal Tax Responsibility
  8. Federal Interest in Education
    • Federalism
    • Historical Role of the Federal Government
    • U.S. Department of Education
    • Constitutional Role
    • Block Grants, Categorical Aid, and General Aid
    • Federal Expenditures
    • Fiscal Advantages and Disadvantages
    • Increased Government Service
    • The Future of Federal Aid to Education
  9. The Influence and Climate of the Courts
    • Three Waves of School Finance Litigation
    • The First Wave of School Finance Litigation
    • The Second Wave of School Finance Litigation
    • The Third Wave of School Finance Litigation: A Shift from Equity to Adequacy?
    • Second-Generation Adequacy Cases
    • Impact of School Finance Litigation over Time
    • Pressure for Reform
    • Finance Reform or Tax Reduction?
    • Court Decision Guidelines
  10. Public Funds and Nonpublic Schools
    • History
    • Educational Choice
    • The Law and Church-State Relations
  11. Financing School Facilities
    • The Need
    • Early Capital-Outlay Programs
    • Capital-Outlay Court Decisions
    • State Support
    • Equity in Financing Educational Facilities
    • The Federal Government and Capital Outlays
    • Capital-Outlay Finance Plans
    • School Bonding Practices
    • Other Alternatives
    • Impact Fees
    • Sales Taxes
    • Future Policies for School Facilities
  12. Administering the District and School Budget
    • Evolution of Budgetary Practices
    • Development of a Systems Approach to Budgeting
    • District and School Budgetary Approaches
    • District-Level Budgetary Practices
    • Administering the District Budget
    • School/District Coordination
    • Budgeting at the School Level
    • Challenge of Leadership
  13. Accounting and Auditing
    • The School Accounting System
    • The Changing Accounting Environment
    • Comprehensive Annual Financial Report
    • Characteristics of Governmental (Fund) Accounting
    • Encumbrance Accounting
    • Cost Accounting
    • Accrual Accounting
    • Receiving and Depositing Funds
    • Expending School Funds
    • Auditing
    • Protecting School Funds
  14. Business Aspects of the School Community
    • Increased Safety Hazards
    • The Business Office
    • Supplies and Equipment
    • Purchasing
    • Supply Management
    • Risk Management
    • Transportation
    • School Food Services
  15. Human Resources and School Finance
    • The Expanded Role of Human Resources Administration
    • Teacher Compensation
    • Certification
    • Pay-for-Performance— Merit Pay
    • Additional Issues
    • Teachers and School Finance
    • The Changing Assignments of Teachers
    • Administrative and Supervisory Salaries
    • Noncertified Personnel Salaries
    • Payroll Policies and Procedures
    • Government Influence
  16. The Road Ahead in School Finance
    • The Future of Public School Finance
    • Unresolved Issues
    • Some Characteristics of Educational Structure
    • School Finance Goals
    • The Challenge
    • Some Characteristics of Educational Structure
    • School Finance Goals
    • The Challenge

About our authors

Deborah Verstegen, PhD is a professor of educational leadership, College of Education, University of Nevada, Reno. She served as Edwin J. O'Leary Endowed Chair of Financial Management, University of Illinois, Urbana-Champaign, and was a professor of finance and policy in the Curry School of Education at the University of Virginia for nearly 2 decades. Prior to joining the university community she was a teacher, administrator and legislative aide in state government. She has had teaching experience at all levels, from pre-school, elementary and secondary to community college and university. Her administrative experience in education is also broad. She has been a central office administrator for a K-12 school system in Alaska's Iditarod Area School District, Director of the Mid-management Program at the University of Texas at Austin, and Department Chair in Educational Leadership at UNR. She is author or co-author of over 300 books, articles, monographs, and chapters, including Financing Education in a Climate of Change. Professor Verstegen has developed an equity statistic, later given her name by scholars, called the "Verstegen Index." The focus of her scholarship is on equal opportunity and justice in the area of education finance, and the fiscal aspects of education policy at the state and national levels. Professor Verstegen has been active in school finance litigation, serving as an expert witness, as a consultant with government and education organizations, and in numerous professional organizations. She has served twice on the Board of Directors for the national education finance association. She is a past editor of the Journal of Education Finance and currently serves as policy editor. Her alma mater, the University of Wisconsin, awarded her an alumnae achievement award. She was named Distinguished National Fellow in Finance by the National Education Finance Academy, and a recent recipient of the Lifetime Achievement Award.

Robert C. Knoeppel, PhD is the Dean of the College of Education at the University of South Florida. In his position, Knoeppel plays a key role in shaping a distinctive vision for the future of the college that maintains alignment with USF's strategic priorities. An experienced higher education leader and nationally recognized researcher, Knoeppel was previously a professor and chair of the Department of Educational and Organizational Leadership Development at Clemson University. Knoeppel's work has been regularly published in the Journal of Education Finance and Educational Considerations, and he has authored over 100 refereed journal publications, book chapters, technical reports and conference papers in the field of education finance, education reform and educational leadership over the course of his career. Knoeppel held an academic appointment at the University of Kentucky, where he led courses in educational leadership studies. He also worked for several years in the Virginia public school system as a school counselor, administrator and coach. Knoeppel serves as President Elect and a member of the board of trustees of the National Education Finance Academy, where he earned the Scholarly Paper of the Year Award for 3 consecutive years.

Dr. Vern Brimley has been a public school administrator for over 30 years, retiring as administrative assistant to the superintendent of Provo City Schools. In the span of his career, he has been director of federal programs; involved in school purchasing, research, and public relations; a consultant for several school districts; and worked as an elementary teacher and principal. Additionally, he served on the State of Utah committee delegated by the Utah State Legislature to study the Utah School Finance system. Twelve major changes resulted from this study, including equalization of capital outlay budgets. Dr. Brimley also taught in a secondary modern school in Great Britain for a year on a Fulbright Exchange scholarship. He was selected as 1 of 40 educational administrators from throughout the US and Canada to participate in the initial intensive 2-month study program under the sponsorship of the National Academy for School Executives (NASE), the training arm of the American Association of School Administrators (AASA), and the Danforth Foundation. The Study-Leave Fellowship provided the opportunity for Dr. Brimley to study the financial structure of state educational systems and state departments of education. He was designated as an Innovative Educator by the Kettering Foundation. Dr. Brimley was a student of Professor Percy Burrup and did research for the 1st Edition of Financing Education in a Climate of Change, and was co-author of the 3rd Edition with Professor Burrup. After Dr. Burrup's death, he teamed with Dr. Rulon Garfield to write the 4th through 11th Editions, and with Dr. Deborah Verstegen as co-author for the 11th and 12th Editions. Dr. Brimley served as an Adjunct Professor at Brigham Young University and has taught many education leadership courses, but specialized in school finance and school business management. He has presented papers at conferences including the American Education Finance Association and has written articles on various education issues. He is married to Dawn Baker Brimley. They are the parents of 3 daughters and have 10 grandchildren.

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