Local Option Sales Tax, State Capital Grants, and Disparity of School Capital Outlays: The Case of Georgia
Journal of Public Budgeting, Accounting, and Financial Management, Forthcoming
Posted: 9 Apr 2015
Date Written: April 7, 2015
Abstract
In recent years, the disparity of school capital outlays has received increasing attention as many schools are facing challenges to meet increasing capital needs. This study examines how the disparity of school capital outlays is affected by the mix of capital revenues in Georgia county school districts. Using multiple methods, including spatial data analysis, quartile analysis, and inequality decomposition, we find that (1) school capital outlays in Georgia counties are negatively associated with the percentage of black population and the poverty rate, (2) state capital grants do not play an equalization role in school capital outlays, and (3) the use of Local Option Sales Tax has some equalizing effects on funding for school facilities, contrary to earlier findings in the literature.
Keywords: Local option sales tax, education equity, school facilities
JEL Classification: E62
Suggested Citation: Suggested Citation