Property Tax Responses to State Aid Cuts in the Recent Fiscal Crisis

Many states experienced fiscal crises at the beginning of this decade. Some responded by cutting state aid to local governments. This paper explores the extent to which local governments responded to these aid cuts by raising property taxes. The authors hypothesize that changes in aid help explain the observed differences in per capita property tax revenue changes across states. They find that on average school districts increased property taxes by 23 cents for each dollar cut in state aid. These results highlight the important role that the property tax plays in maintaining the stability of the state and local sector.     

The Use and Efficacy of Capacity‐Building Assistance for Low‐Performing Districts: The Case of California's District Assistance and Intervention Teams

The theory of action upon which high‐stakes accountability policies are based calls for systemic reforms in educational systems that will emerge by pairing incentives for improvement with extensive and targeted technical assistance (TA) to build the capacity of low‐performing schools and districts. To this end, a little discussed and often overlooked aspect of the No Child Left Behind Act (NCLB) mandated that, in addition to sanctions, states were required to provide TA to build the capacity of struggling schools and Local Education Agencies (LEAs, or districts) to help them improve student achievement. Although every state in the country provides some form of TA to its lowest performing districts, we know little about the content of these programs or about their efficacy in improving student performance. In this paper, we use both quantitative and qualitative analyses to explore the actions taken by TA providers in one state—California—and examine whether the TA and support tied to California's NCLB sanctions succeeds in improving student achievement. Like many other states, California requires that districts labeled as persistently failing under NCLB (in Program Improvement year 3, PI3) work with external experts to help them build the capacity to make reforms that will improve student achievement. California's lowest performing PI3 districts are given substantial amounts of funding and are required to contract with state‐approved District Assistance and Intervention Teams (DAITs), whereas the remaining PI3 districts receive less funding and are asked to access less intensive TA from non‐DAIT providers. We use a five‐year panel difference‐in‐difference design to estimate the impacts of DAITs on student performance on the math and English language arts (ELA) standardized tests relative to non‐DAIT TA during the two years of the program intervention. We find that students in districts with DAITs perform significantly better on math California Standards Tests (CSTs) averaged over both treatment years and in each of the first and second years. We do not find evidence that students in districts with DAITs perform higher on ELA CSTs over the combined two years of treatment, although we find suggestive evidence that ELA performance increases in the second year of treatment relative to students in districts with non‐DAIT TA. Ordinary least squares (OLS) regressions that explore the association between specific activities fostered by DAITs and changes in districts’ gains in achievement over the two years of treatment show that DAIT districts that report increasing their focus on using data to guide instruction, shifting district culture to generate and maintain high expectations of students and staff, and increasing within‐district accountability for student performance, have higher math achievement gains over the course of the DAIT treatment. In addition, DAIT districts that increase their focus on ELA instruction and shift district culture to one of high expectations have higher ELA achievement gains than do DAIT districts that do not have a similar focus. © 2012 by the Association for Public Policy Analysis and Management.     

Does fiscal decentralization constrain Leviathan? New evidence from local property tax competition

This paper reexamines whether fiscal decentralization constrains Leviathan government. Using panel data for Pennsylvania, we compare actual property tax rates to the Leviathan revenue-maximizing rates for municipalities, school districts, and counties. Using spatial econometric methods we also estimate the degree of spatial dependence at the three levels of local government. We find that fiscal decentralization results in stronger intergovernmental competition and lower tax rates. We also find evidence of collusion among school districts that exhibit high interdependence but also high tax rates. This calls into question the current literature??s blind use of spatial dependence as a measure of intergovernmental competition.     

“Robin Hood” and Texas School District Borrowing Costs

The “Robin Hood” system of school financing in Texas takes property tax funds from wealthy school districts and gives them to poorer districts. This paper examines Permanent School Fund‐insured, school district debt and discovers that under the “Robin Hood” system, Texas school districts with either Aa or A1 underlying credit ratings have higher borrowing costs than districts with lower ratings. Also, the borrowing costs of Texas school districts with underlying credit ratings of Aa and A1 are higher than those for non‐Texas, privately insured school districts with the same ratings, while the borrowing costs of A and Baa‐rated Texas school districts are lower.     

Budget Control in Virginia Public School Districts

This article examines the selection and use of a budget approval technique. Specifically, two research questions are addressed: (1) Does the use of a particular budget approval method by a governmental body impact the execution of the budget? (2) What characteristics of a local government are associated with its decision to use a particular budget approval method? Both research questions are addressed by analyzing data from public school systems in the Commonwealth of Virginia, specifically, whether using categorical budget approval differs in the accuracy of budgeting versus using a lump-sum approval method. Characteristics of Virginia school districts are also analyzed according to whether any of them are likely to be associated with school districts using a particular approval method. The remainder of this article is organized as follows: the next section describes the role of budgeting control in schools; subsequent sections review Virginia school district budgeting practices, develop the empirical model used to test the hypotheses, describe the sample, analyze the results of empirical tests and discuss implications of the findings.     

Using Common‐Pool Resource Principles to Design Local Government Fiscal Sustainability

This article analyzes local government fiscal sustainability as a common‐pool resource (CPR) problem. Comparing the experiences of Los Angeles County, San Bernardino City, and San Bernardino County, California, the analysis applies a framework developed from three decades of CPR research to show the importance of six micro‐situational variables—communications with the full set of participants, known reputations of participants, high marginal per capita return, entry or exit capabilities, longer time horizon, and agreed‐upon sanctioning capabilities—in shaping collective action dynamics and building the trust and reciprocity among stakeholders needed to achieve fiscal sustainability. The underlying contextual conditions for these micro‐situational variables vary based on specific socioeconomic and political settings, but the findings suggest that institutions and processes can be designed based on several well‐tested principles in CPR governance to encourage stakeholders to look beyond their immediate self‐interests and make decisions that account for the community's long‐term fiscal sustainability.     

Simulation of a Constitutional Spending Limit for a Conservative State: With Dynamic Adjustment and Sensitivity Analysis

Longstanding concern about the rate of state and local government spending growth, strengthened by “Great Recession” economic and fiscal conditions, sustains advocacy of constitutional amendments to cap the growth of state and local taxes or spending. For some states, interest recently changed to necessity, and current constitutional limits—most notably the California experience with the Gann Spending limit (1979–1990) and the Colorado experience with its Taxpayer Bill of Rights (1992‐present)—contain numerous valuable lessons for fiscal restraint proponents. We use those lessons, and others, to develop a constitutional spending limit (CSL) for Utah, and describe a CSL simulation for the state for 1990–2009. In contrast to what an “Institutional Irrelevance Perspective” suggests for a politically conservative state such as Utah, we find that Utah would have seen large and robust CSL impacts from setting the spending growth rate at school‐age population plus inflation for K‐12 education funding, and at population plus inflation for remaining nonexempt state spending.¹ Those impacts include a reduced tax burden, sizable reserves to cope with emergencies, elimination of fiscal crises, and expanded personal income. Extensive sensitivity analysis identifies the key underlying factors and demonstrates the robustness of those findings. We compare the Utah results to a 1990–2009 CSL simulation for California, and a 1995–2009 CSL simulation for Ohio.     

Decentralization in Tanzania: An assessment of local government discretion and accountability

A large part of the decentralization literature is fragmented along political, fiscal, or administrative lines. In this article we employ a diagnostic framework to draw these dimensions together in a coherent manner to focus on analyzing local government discretion and accountability in Tanzania. Tanzania seems to have a deconcentrated local government system with central appointees having large powers at the local level. Centrally‐funded mandates—such as constructing secondary schools—dominate local government plans and budgets. Central control over administrative functions has ensured that administrative decentralization is yet to occur. In the fiscal sphere, progress has been made in transparency and harmonization of transfers in the last 5 years but local governments still have some way to go in raising own revenues, being less reliant on transfers, and ensuring downward accountability. Copyright © 2010 John Wiley & Sons, Ltd.     

An examination of the structure of governance in California school districts before and after Proposition 13

This paper explores the structure of governance in California school districts. Two alternative models are considered, the decisive voter (benevolent dictator) model and a model that allows for rent-seeking behavior on the part of district decision makers. A formal test between these two models is proposed and implemented. The decisive voter model is found wanting as an explanation of school district decision making both before and after the passage of Proposition 13. There is, however, some evidence that the constraints imposed on some districts by Proposition 13 have forced decision makers to act in a manner more consistent with the preferences of their constituents.     

Strategic Involuntary Teacher Transfers and Teacher Performance: Examining Equity and Efficiency

Despite claims that school districts need flexibility in teacher assignment to allocate teachers more equitably across schools and improve district performance, the power to involuntarily transfer teachers across schools remains hotly contested. Little research has examined involuntary teacher transfer policies or their effects on schools, teachers, or students. This article uses administrative data from Miami‐Dade County Public Schools to investigate the implementation and effects of the district's involuntary transfer policy, including which schools transferred and received teachers, which teachers were transferred, what kinds of teachers replaced them in their former schools, and how their performance—as measured by their work absences and value‐added in math and reading—compared before and after the transfer. We find that, under the policy, principals in the lowest performing schools identified relatively low‐performing teachers for transfer who, based on observable characteristics, would have been unlikely to leave on their own. Consistent with an equity improvement, we find that involuntarily transferred teachers were systematically moved to higher performing schools and generally were outperformed by the teachers who replaced them. Efficiency impacts are mixed; although transferred teachers had nearly two fewer absences per year in their new positions, transferred teachers continued to have low value‐added in their new schools.     

The effect of school district and municipal government financial health information on local tax election outcomes: evidence from fiscal stress labels in Ohio

A key informational asymmetry in local public finance is the lack of information available to local residents regarding the financial status of the school districts and local governments in which they reside. Given that voters in many states must approve property and income tax increases for these local entities, the lack of full information on the financial status of these local entities may lead to sub-optimal voting decisions. State financial intervention systems have begun to make financial problems more salient to residents, potentially alleviating these informational asymmetries. This paper examines the effect of the Ohio fiscal stress labeling program on voting outcomes and the tax-setting behavior of local officials for school district and municipal government tax referendums. We use a difference-in-differences approach to examine data from over 3000 school district and 2300 municipality property tax elections from 2004 to 2012. While we find minimal evidence that the yes vote share changed for school district referendums following fiscal stress label receipt, we find very large increases (15 to 23 percentage points) in the likelihood of referendum passage for school districts following label receipt. We do not find much evidence of changes in the likelihood of passage or the yes vote share following label receipt for municipalities, but we do find that these voting outcomes rise following label removal. We also find that local officials do not appreciably change their tax-setting behavior in response to these labels, as the size and likelihood of property tax proposal are largely unchanged following label receipt or removal.     

Levels of Value Integration in Federal Agencies' Mission and Value Statements: Is Open Government a Performance Target of U.S. Federal Agencies?

The Barack Obama administration advanced open government initiatives to make federal administration more open, accountable, and responsive to citizens. Yet a question remains whether federal administrators took notice. This article examines changes in the extent to which U.S. federal agencies have integrated the three core principles of open government—transparency, public participation, and collaboration—into their performance planning. By analyzing 337 annual performance plans of 24 major federal agencies from fiscal years 2001 to 2016, the authors found that, overall, the level of integration of open government into performance planning has been trending higher since the early 2000s. During the Obama presidency, integration initially rose sharply but later declined. Findings also show that agencies' stated core values regarding open government are not consistently integrated into their performance plans. The implications of these findings for incorporating democratic‐constitutional values into holistic performance management are considered.     

Who Delivers? Partisan Clients in the Argentine Electoral Market

Why do some parties fail to benefit from patronage in pork‐ridden political systems? This article analyzes the interaction between patronage and partisanship to explain why some incumbents are more likely to benefit from pork politics than others. We explain such differences by focusing on political parties' access to resources (supply side) and voters' dependence on fiscal largesse (demand side). We show how these differences affect the patron's choice of public sector wages and employment. We use subnational level data to show different electoral returns from patronage for the two major political coalitions in Argentina—Peronism and the UCR‐Alianza—and their effect on preferences over public sector wages and employment.     

The Intersection of Redistricting,Race, and Participation

The drawing of congressional district lines can significantly reduce political participation in U.S. House elections, according to recent work. But such studies have failed to explain which citizens’ voting rates are most susceptible to the dislocating effects of redistricting and whether the findings are generalizable to a variety of political contexts. Building on this nascent literature and work on black political participation, we show that redistricting's negative effects on participation—measured by voter roll‐off in U.S. House elections—are generally strongest among African Americans, but that black voters can be mobilized when they are redrawn into a black representative's congressional district. Our findings, based on data from 11 postredistricting elections in five states from 1992 through 2006, both expand the empirical scope of previous work and suggest that redistricting plays a previously hidden role in affecting black participation in congressional contests.     

Partisan turnout bias and district magnitude

This article examines how the partisan turnout bias (i.e. turnout rate differences across districts that are linked to the partisan vote shares in those districts) changes over time in PR districted electoral systems. We argue that the bias after the founding election is the unintended consequence of parties and voters' strategic behaviors when they respond to the incentives provided by the electoral system. By looking at the case of Portugal, one of the countries with the largest variation in district magnitude, we find that the increasing asymmetry in turnout rates across districts makes the bias more severe as time goes by.     

Walking Away From The Wire: Housing Mobility and Neighborhood Opportunity in Baltimore

Families using the Housing Choice Voucher Program rarely experience large gains in neighborhood or school quality when compared with unassisted poor renters. Research on housing mobility programs has reached mixed conclusions about whether vouchers can improve neighborhood and school quality, especially in the long term. We revisit these findings using new data from the partial remedy to the Thompson v. HUD desegregation case in Baltimore, known as the Baltimore Housing Mobility Program (BHMP). Through targeted vouchers, intensive counseling and innovative policy features, the BHMP helped families move to low-poverty, nonsegregated neighborhoods with higher performing school districts. We examine residential outcomes for the first 1,800 families that moved through the program for a period of up to 9 years. We find that BHMP families moved to more integrated and affluent neighborhoods, in school districts with more qualified teachers and fewer poor students—and most families stayed in these neighborhoods beyond their initial lease-up period. Eventually, a small proportion of families moved to neighborhoods that are less white, but still significantly less poor and less segregated than their original communities. We interpret these findings in light of past mobility programs and discuss policy implications for the Housing Choice Voucher Program.     

Sinking Swann: Public School Choice and the Resegregation of Charlotte's Public Schools

Public school choice is a widely used tool for education reform and may be a way to improve school accountability and efficiency. This article examines what happened to student outcomes when Charlotte‐Mecklenburg Schools, a large and diverse urban school district located in North Carolina, changed its assignment policy to one of open enrollment with mandatory choice. The previous policy used a broad array of magnet schools and a limited amount of mandatory busing to achieve desegregation. The new policy required that all students choose a school, and it specifically avoided using race or ethnicity considerations in assigning students. The article examines the impacts of the new policy on the end‐of‐grade standardized tests in reading and math. The article uses regression analysis to discover whether the scores of various groups of students increased or decreased after the policy change. The analysis suggests that the “race‐neutral” assignment policy was neither neutral in the opportunity it provided students to attend their school of choice nor in its academic outcomes. Anglo students were more likely to receive their first choice of schools and to improve their scores. African American students were less likely to receive their first choice school and their scores declined.     

Workplace and Non‐workplace Pro‐environmental Behaviors: Empirical Evidence from Florida City Governments

Public employees are expected to be good stewards of public resources and engage in pro‐environmental behaviors (PEBs). Using different categorizations of PEBs, this article examines whether public employees perform these PEBs in workplace and non‐workplace settings. The article further investigates how PEBs are influenced by salient characteristics of public organizations—that is, public service motivation (PSM) and civic participation categorized as civic engagement and cognitive engagement. Data were collected through a survey of public employees in two city governments in Florida. A structural equation model was employed to test the proposed model. Findings indicate that PSM has a positive influence on workplace PEBs and similar PEBs in the non‐workplace settings. Civic engagement has a positive influence on both workplace and non‐workplace PEBs. Barriers significantly moderate the effects of PSM and cognitive engagement on workplace and non‐workplace PEBs.     

Education Aid in New York State: Targeting Issues and Measures

The distribution of state aid for public education in New Yorkis the result of a combination of political and educationalconcerns. They influence the amount of school aid distributed,the pattern of aid distribution among school districts, thetypes of programs funded, and the accountability required forthese funds. This article focuses on the forces that influencethe split between general state aid and targeted state aid.General aid refers to aid that districts may use for any purposeconsistent with local priorities or needs. Targeted aid is moneyprovided by the state to a district for a particular purpose.When a district accepts targeted aid, it must agree to spendthe funds in accord with specific statutes or regulations. Considerationsof equity, mechanics of state aid distribution, and the historyof the development of school aid legislation are also discussedin this article.     

State and Local Fiscal Sustainability: The Challenges

At the state and local level, fiscal sustainability is the long‐run capability of a government to consistently meet its financial responsibilities. It reflects the adequacy of available revenues to ensure the continued provision of the service and capital levels that the public demands. After examining separate revenue and expenditure trends for state and local governments, this article identifies three specific sets of pressures that affect subnational fiscal sustainability—cyclical, structural, and intergovernmental. It then presents three specific examples of these pressures: Medicaid, pensions and retiree health benefits, and infrastructure. The author asserts that without changes in the fiscal system—in both revenues and expenditures—state and local fiscal sustainability will disappear. It concludes with some potential solutions but argues that the most difficult reform is to ensure that the public understands that there is no such thing as a free lunch.