The implementation of school finance reform

The reform of educational finance systems is underway in various states. The results of the reforms in early states can act as guides to the design of new finance systems in other states. Based on recent experiences in New Jersey, the authors discuss the role that policy analysis can play in aiding the school finance reform process. The results of the New Jersey reform suggest that the policy analyst must understand the behavioral responses of school districts to new aid and must take into account likely changes in the underlying economic conditions of local areas if he or she hopes to accurately assess the impacts of alternative finance proposals.