Funding, Investment, and Wealth Equalization Across Texas Public School Districts

43 Pages Posted: 12 Feb 2022

See all articles by Melinda Petre

Melinda Petre

Dartmouth College

Parth Venkat

University of Alabama - Department of Economics, Finance and Legal Studies

Abstract

We study how Texas school districts respond to funding changes under a wealth equalization policy using an instrument to exogenously identify funding changes. We find that property-rich districts, which have a high likelihood of having new funds recaptured by the state, reduce their tax rates and issue debt for capital expenditures. In contrast, when property-poor districts receive funding, they employ additional teachers with more experience and higher credentials. These results imply that tax and transfer schemes should be designed considering behavioral responses and funding needs.

Keywords: Education Funding, Equity, Oil Funding, Tax Incentives, Texas Public Schools

Suggested Citation

Petre, Melinda and Venkat, Parth, Funding, Investment, and Wealth Equalization Across Texas Public School Districts. Available at SSRN: https://ssrn.com/abstract=4033332 or http://dx.doi.org/10.2139/ssrn.4033332

Melinda Petre

Dartmouth College ( email )

Department of Sociology
Hanover, NH 03755
United States

Parth Venkat (Contact Author)

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States

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