Title: Chapter 3 Legal Framework for Financing Public Education
1Chapter 3Legal Framework for Financing Public
Education
2Federal Role in Education
- The federal government has a long precedent of
providing education programs, funds,
initiatives to the states - Without federal intervention, many initiatives
may not have been started, and many injustices
would have continued longer
3Federal Role in Education, cont.
- Brown v. Board of Education of Topeka (ended
desegregation) - Brown II (ended more desegregation)
- Serrano v. Priest (finance equity)
- The Kentucky Education Reform Act (more finance
equity) - Title IX (ended gender discrimination),
- Title VII (Civil Rights Act)
- Public Law 94-142 (Special ed. rights)
4Limited Federal Role in Education
- The Tenth Amendment to the United States
Constitution says that the powers not delegated
to the federal government by the Constitution or
are not prohibited by it are reserved for the
states - Since the first ten Amendments do not mention
education, it became a state function by default
5The Tension Continues Today
- The 10th Amendment compromise balanced interests
of those who wanted a strong federal government
and those who wanted to preserve states rights
- The states are not willing to surrender control
of education and the federal government cant
afford to pay its promised share
610th Amendment CompromisePlenary Power
- Each state is responsible for setting up an
educational system and may pass laws it considers
desirable towards that end as long as those laws
are not in conflict with its own State
Constitution or Federal Constitution - The courts, however, can only intervene if there
is a challenge based on a legitimate controversy
brought by a party with legal standing concerning
the states practice and the State or Federal
Constitution or its application
710th Amendment CompromisePlenary Power, cont.
- Over the past decades, the federal powers have
somewhat reduced the plenary nature of the
states control of education.
8State Control of Education
- Each states constitution has language that forms
the legal framework for the organization of the
states education function
- All states except Hawaii (and the District of
Columbia) delegate much of the authority for
education to local school boards to be
coordinated through the State Department of
Education also known as the State Education
Agency (SEA)
9State Control of Education, cont.
- The state constitution the states department
of education regulations control the parameters
under which each local school district operates
10School Finance The Law
- Finance is perhaps the most critical issue facing
states as it affects the federal role in
education
- Increasingly, federal courts are ruling against
states in cases involving states education
funding formulae, challenging equity and adequacy
11School Finance The Law, cont.
- A Historical Legal perspective and Guiding
principles regarding - Taxation
- Equal protection
- State Federal Constitutional language
- Adequacy
- Vouchers and charter schools
- Tuition tax credits
12Taxing to Fund Schools
- The federal level has a long history of taxing
- spending to pay for education
- services
- The first public school laws
- involved taxation in the Massachusetts Bay
Colony to raise the necessary funds for education
services the 1647 Ye Olde Deluder Satan laws
13Taxing to Fund Schools, cont.
- Section 8, Article 1 of the U.S. Constitution
gives the Congress - the right to tax and spend
- The article, in part, reads, The Congress shall
have Power to lay and collect Taxes, Duties, and
Imports and Excises, to pay the Debts and
provide for the common Defense and General
Welfare of the United States
14General Welfare Clause
- Originally controversial, the General Welfare
clause conferred on Congress broad powers to tax
and spend for the general welfare of the United
States.1 - 1 United States v. Butler, 297 U.S. 1, 56 S.
Ct. 312 (1936).
15Taxing to Fund Schools
- At the state level, the Supreme Court has ruled
that states have taxing power to resort to all
reasonable forms of taxation in order to defray
the government expenses. - Further, the court said, Unless restrained by
provisions of the Federal Constitution, the power
of the state as to the mode, form, and extent of
taxation is unlimited . - Shaffer v. Carter, 252 U.s. 37 (1970).
16Federal Involvement in Education ONLY When
- (1) States agree in accepting federal grants that
are provided under the authority given the
Congress by the General Welfare Clause - (2) Standards or regulations that the Congress
has authorized within the Commerce clause - (3) Court actions that constrain states by
enforcing federal constitutional provisions
protecting individual rights and freedoms
17Federal Involvement in Education ONLY When
- 1. When the state has accepted a federal grant
(NCLB, Drug Free Schools, etc.) and grant
provisions require the state to comply with
certain federal guidelines. - If states and localities do not comply, the
federal government can force the state to comply.
18Federal Involvement in Education ONLY When
- 2. A state action impacts the Commerce Clause (as
in the case of United States v. Lopez). - In this case, the U.S. Congress made it a crime
to have a gun within a school zone. A student
brought a loaded pistol to school and was sent to
jail under the Gun Free School Zone. - United States v. Lopez, 131 L.Ed.2d 626, 115 S.
Ct. 1624 (1995).
19Federal Involvement in Education ONLY When
- 3. U.S. Constitutional rights are involved (as in
Tinker v. Des Moines Independent Community School
District). - The school suspended students for wearing
black arm bands to protest the Vietnam war. The
Supreme Court ruled that a school policy cannot
outweigh freedom of expression (speech) without
reasonable knowledge that such an act of
expression would have foreseeably substantially
disrupted the school process.
20Federal to Schools
- In 2003, the total federal contribution to
national education expenditures was approximately
10
21Federal to Schools Includes
- Department of Health and Human Services' Head
Start program - Department of Agriculture's School Lunch program
- Department of Education pays only
- 6 of total education spending
22Federal to Schools
- The US Department of Educations annual
- 63.2 billion appropriation is only 2.9 of
the Federal Government's nearly 2.2 trillion
budget in fiscal year 2003. - The remaining dollars are divided almost
equally between state and local revenues.
23Federal Education Funds Over Time
24State Prerogatives
- States may tax what they wish as long as it does
not conflict with federal provisions or with the
states constitution
25State Prerogatives, cont.
- Taxing authority is not considered to be inherent
in school districts unless the state constitution
language permits such taxing authority
26State Prerogatives, cont.
- There is strong legal precedent for state
constitution language to be strong and clear
regarding authority for school boards to tax - In Marion and McPherson Railway Co. v. Alexander,
64 P. 978 (Kan. 1901), the Kansas Supreme Court
ruled that the authority to levy taxes is
extraordinary... and should never be left to
implication - Contested again Florida Department of Education
v. Glasser, 622 So.2d 944 (Florida, 1993)
27State Prerogatives, cont.
- This has been contested again in 1993
- The Florida Supreme Court ruled that the School
Board of Sarasota County required authorization
of law by the state legislature to levy taxes for
schools. Absent the specific authorization, the
school board could not direct the County tax
collector to collect and remit school taxes - Florida Department of Education v. Glasser, 622
So.2d 944 (Florida, 1993)
28State Prerogatives, cont.
- Some school districts have the legal authority to
levy taxes for schools - Others must wait for a governing body to approve
a school budget as one part of a city or county
budget. That governing body must then set the
tax rate - In spite of the states prerogative in taxing,
virtually all states rely on one primary revenue
source to finance public schools property taxes
29Property Taxes
- Property taxes date back to ancient Greece
- In Athens, land and houses were taxed
- Later, in Rome, people and property were taxed
- In Europe, land, homes, and livestock were taxed
30Property Taxes in the 19th Century
- Taxing property became the accepted means for
funding schools - Land was taxed at different rates if it were
cleared, uncleared, or cultivated - Later, livestock and equipment was seen as a
source of taxable property
31Property Taxes in the 19th Century, cont.
- Taxing property equipment at different rates
became increasingly complex for localities
32Property Taxes in the 19th Century, cont.
- States developed a uniform general property tax
based on a percentage of the value (or millage)
of the land - If Farmer Browns land were worth more than
Farmer Jones land, Farmer Brown would pay more
in property taxes - The tax rate, however, would be uniform
throughout the state or locality
33Equal Protection Taxation
- Once states establish a revenue source, they must
decide how to distribute that revenue to school
districts
- The Fourteenth Amendment, ratified in 1868
- No State shall make or enforce any law which
shall abridge the privileges or immunities of
citizens of the United States nor shall any
State deprive any person of life, liberty, or
property, without due process of law nor deny to
any person within its jurisdiction the equal
protection of the laws.
34Equal Protection Taxation, cont.
- The Civil War had ended three years earlier and
the country was trying to decide how to treat the
newly-freed slaves - The 14th Amendment was clearly an attempt to
legislate civil rights after the war
35Equal Protection Taxation, cont.
- Supreme Court took a role in defining equal
protection of state taxation - The court determined that the equal protection
clause established a minimum standard of
uniformity to which that state legislation must
adhere -
36Test of States Taxation Constitutionality,
1890
- Equal protection does not require identical
treatment. It only requires - The classification rest on real not feigned
differences - The distinction have relevance to the purpose for
which the classification is made - The different treatment be not so disparate,
relative to the difference in classification, as
to be wholly arbitrary -
37Civil Rights Act of 1964
- This time the equal protection clause was
linked to federal spending.
- Contained ground-breaking language regarding
race and discrimination under the language of
equal protection.
38Civil Rights Act of 1965
- Education was a constitutionally-protected right
of all citizens and that right should be provided
to all citizens on equal terms
- Any state that provided fewer dollars for poor
school districts denied those children equal
protection under the law
39- Since the Supreme Court had already ruled that
classifying people on the basis of poverty,
occupation, homesite, or the like was
unreasonable, it held that the quality of
education could not be based on a state or local
taxing system where the level of education is
determined by the localitys wealth.
40Two Court Cases Litigated Under Equal Protection
Clause
- Both cases cited that large disparities in
ability to fund education within their respective
states (Illinois Virginia) resulted in wealthy
school districts spending more to meet student
needs than in poorer districts where educational
needs may be much greater
41Two Court Cases Litigated Under Equal Protection
Clause
- The Supreme Court affirmed the lower courts
rulings against the parents and for the existing
funding practice in Illinois and Virginia, saying
that equal expenditures were not required under
the Fourteenth Amendment
42Two Court Cases Litigated Under Equal Protection
Clause
- Plaintiffs could not define a court-requested
reasonable standard to assess and measure
educational need - Since the ideas could not then be addressed with
research or consensus, the Court refused to
declare the finance systems unconstitutional
431977 California Supreme Court Case
- Challenged the California funding formula
Serrano v. Priest (1971)
- The Court determined
- Education was a fundamental interest
- The basic state aid did tend to equalize among
the disparate school districts
441977 California Supreme Court Case, cont.
- The Court determined
- 3. The state funding model generated state
local funds that created substantial disparities
in revenue to school revenue proportional to
the wealth of the individual school - 4. Declared Unconstitutional
-
451973 Rodriguez Case
- A group of Mexican-American parents from the
Edgewood Independent School District sued the
Texas system of education funding - The plaintiffs argued that education funding
model in Texas makes the quality of education a
function of the local property tax base and that
the state funding is insufficient to correct the
inherent inequalities
461973 Rodriguez Case, cont.
- A Texas three-judge panel stated that since
education is a state function, the quality of
education should not be determined by the
localitys - wealth, but by the states overall wealth
- On appeal, the United States Supreme Court heard
the arguments decided that the wide disparities
in the Texas funding formula do not violate the
equal protection clause of the 14th Amendment
47Litigating Equal Protection School Finance
- After Rodriguez, for all intents and purposes,
litigation for school finance reform under the
umbrella of the equal protection clause ended.
48Standards of Equal Protection
- The courts use 3 tests to decide if government
actions that treat individuals differently for
any reason violates the equal protection clause - Rational relationship test
- Intermediate test
- Strict scrutiny test
49Test 1 The Rational Relationship Test
- Does the government have a rational reason for
the differential treatment of individuals that
does not violate the Constitution?
- The court is not looking for scientific data to
substantiate the claim -- only for a rational
relationship
50Test 2 The Intermediate Test
- Instead of asking that there be a reasonable
basis for the treatment based on a rational
relationship, the court will ask for evidence of
some substantial government interest
51Test 2 The Intermediate Test, cont.
- This test has generally been applied to sex
discrimination cases and many policies that
treated women differently than men were
overturned using this test
52Test 2 The Intermediate Test, cont.
- The intermediate test examines the states action
more closely than in the rational relationship
test - For the states action to be upheld requires a
greater level of government interest in the
outcome
53Test 3 Strict Scrutiny
- At this level, the government bears the greatest
burden for treating individuals differently
- At this highest level of reasoning, the
government must show a compelling or overriding
state interest in the differential treatment of
individuals, and no less discriminatory manner
exists for the government in accomplishing this
overriding interest
54Test 3 Strict Scrutiny, cont.
- Only two circumstances where courts invoke strict
scrutiny
- (a) When a fundamental right is affected
- (b) When the action taken by the government
creates a suspect classification of individuals
55Test 3 Strict Scrutiny, cont.
- In this test, unlike the rational relationship
test, the courts will not defer to the ability or
understanding of the legislative body writing the
action
56Test 3 Strict Scrutiny, cont.
- For example, the Court could rule that hiring
unlicensed minority teachers achieves a
compelling state interest if licensing
requirements can be shown to discriminate against
minorities. In this case, the Court would
examine the data and make an independent
determination of the degree of relationship and
the differential treatment that promotes the
states compelling interest.
57Strict ScrutinyFundamental Rights
- Fundamental rights are those rights identified in
the U.S. Constitution and/or State Constitutions
as guaranteed under the equal protection clause - These rights include those in the Bill of Rights,
(i.e., freedom of speech, freedom of the press,
the right to not only substantive procedural
due process)
58Strict ScrutinySuspect Classification
- The Constitution prohibits unequal treatment of
individuals under the law based on different
classifications - One of these classifications, for example, is
religion - The Constitution is silent on some other
classifications
59Strict ScrutinySuspect Classification, cont.
- For example, the 1954 U.S. Supreme Court decision
involving Brown v. Board of Education of Topeka,
Kansas, made race a suspect classification - The Brown ruling on school segregation separate
but equal made race a suspect classification
because the states had laws which denied a group
of people equal protection under the law
60Strict ScrutinySuspect Classification, cont.
- Unequal protection under the law based on race
became illegal - The Civil Rights Act of 1964 added other
classifications
61Strict Scrutiny School Finance Cases
- Serrano v. Priest
- The state supreme court determined that education
was a fundamental right based on language in the
Brown v. Board of Education case from 1954 - The California Supreme Court also decided that
property wealth created a suspect classification
of individuals - Based on the strict scrutiny standard, the court
found the finance model to be unconstitutional.
62Strict Scrutiny School Finance Cases, cont.
- San Antonio Independent School District v.
Rodriguez - The Texas Judges said that since education is a
state function, the quality of education should
not be determined by the localitys wealth, but
by the states overall wealth. - The U.S. Supreme Court REVERSED this decision.
63Strict Scrutiny School Finance Cases, cont.
- San Antonio Independent School District v.
Rodriguez - Justice Powell, writing for the U.S. Supreme
Court majority, maintained that education was not
a fundamental right afforded by the Constitution
under the equal protection clause. - The US Supreme Court then reverted to a lower
standard for examining the case the rational
relationship test instead of strict scrutiny.
64State and Federal Constitutional Language
- Each state has language in its Constitution that
frames how it will treat education - The states education clause
- State education clauses have been the basis for
many legal challenges to state finance models
over the past 20 years
65Equity and Adequacy
- Equity provides for what people need
- Adequacy provides a sufficient quantity of what
people need - People with equal needs should receive equal
treatment, to be sure. Treating unequals
equally, however, is a most unfair thing to do.
66Vouchers, Charter Schools, Tuition Tax Credits
- Interest in vouchers charter schools reflect
dissatisfaction with the current public school
system and a desire to have the state pay for an
alternative form of education - Dissatisfaction with the public schools and
attempts to fund alternative schools is part of
our history
67Vouchers, Charter Schools, Tuition Tax Credits,
cont.
- Basically, these issues involve the concept of
increased parental choice in public schooling.
68Charter Schools
- Alternative, generally specialty schools that
operate with fewer state restrictions
restraints than regular public schools - The state constitution defines their operation
- The state charter, or contract, stipulates how
the school will operate and what accountability
measures will gauge student achievement - If the charters measures are not kept, the state
may revoke the charter
69Public Schools Religious or Secular?
- By 1750, new secular interests began to take
the place of religion as the chief topic of
thought and conversation. Secular books began to
dispute the earlier monopoly of the BibleThese
changes manifested themselves many ways in
education. New textbooks, containing less of the
gloomily religious than the New England Primer,
and secular rather than religious matter,
appeared and began to be used in the schools.
70Battle for Free State Schools
- By 1820, education had moved from private
schools (run by individuals, churches,
incorporated school societies) and state schools
for the poor to a loosely organized public school
system of secular interest. - A conflict loomed The Battle for Free State
Schools.
71The Battle for Free State Schools, cont.
- People who did not want to pay taxes to support
public schools AND - Conservative Protestant ministers who argued that
public schools would hurt religious schools
attendance ( reduce their influence)
VS. - Civic government more progressive legislators
72The Battle for Free State Schools, cont.
- With conflict about the mission of the public
schools, conflict about funding could be far
behind.
73Massachusetts Act of 1827
- Declared that school committees should never
require schools to buy any books which were
calculated to favor the tenets of any particular
Christian sect
74Massachusetts Act of 1827, cont.
- As a result of this Act, for the first time in
American public school history, the public
schools were called Godless schools
75Massachusetts Act of 1827, cont.
- The change in public school mission from
religious to secular led to attacks on
Massachusetts Secretary of Board of Education,
Horace Mann, asserting that the increase in
intemperance, crime, and juvenile depravity in
the State was due to the Godless schools they
were supporting
76Massachusetts Act of 1827, cont.
- In response to this initial
- school secularization, some said
- that if people did not agree with how
- the public schools were run, taxpayers should
be allowed to have that portion of school taxes
returned so those funds could be used to provide
an education more closely resembling parents
wishes
77Vouchers, Charter Schools, and Tuition Tax Credits
- Taking their stock of public funds and using
the monies to establish schools more to their
liking is essentially what todays vouchers,
charter schools, and tuition tax credits
advocates try to do.
78Vouchers
- Vouchers are receipts or documents issued by
the state that can be used to pay tuition at a
public or private school - Parents can use a voucher to pay the tuition to
send their child to an alternative school that
the child would attend
79Vouchers, cont.
- In 2002, the U.S.Supreme Court ruled that
vouchers could be used to pay tuition at private,
religious schools
80Vouchers Are Not New
- In 1869, Vermont adopted a tuition statute
attempting to ensure that students in urban and
rural school districts could receive a quality
secondary education - In towns too small to support a school, the state
paid the tuition to attend another public school
or a private, non-sectarian school
81Vouchers Are Not New, cont.
- This 1869 provision included vouchers for public
schools outside Vermont - In 1961 the state legislature banned religious
schools from this voucher provision
82Whats Legal Depends on the State
Constitutions Language
- School finance cases such as involving paying
public monies to support private sectarian or
parochial schools often depend on the exact
language the states constitution uses rather
than judicial approval of the concept, itself
83Maine Vouchers
- In 1903, Maine legislation provided all students
a high school education with the state paying
tuition to any school of the parents choice,
including paying tuition to schools outside of
Maine - In 1980, however, the Maine Department of
Education enacted provisions to end tuition
payments to attend parochial schools in towns
where public high schools exist
84Maine Vouchers, cont.
- In 1999, the Maine Supreme Court
- ruled in the Bagley v. Raymond case that the
1980 ban on religious schools receiving state
monies is not unconstitutional - As written, Maines constitutional language did
not prevent public monies from going to religious
schools
85Maine Vouchers, cont.
- At the same time that the state
- court was hearing the Bagley case, Strout v.
Albanese raised the same funding issue in federal
court - Both courts delivered the same opinion the
state could ban religious schools from receiving
voucher money BUT the constitutional language
not judicial approval of the concept determined
the outcome
86Wisconsin Vouchers
- In 1990, the Milwaukee, Wisconsin, enacted the
Parental Choice program - This legislation provided for up to 1 of the
economically-disadvantaged Milwaukee Public
School students to obtain a voucher for the
states share of public school costs to attend a
participating non-sectarian private school
87Wisconsin Vouchers, cont.
- Five years later, the program expanded for
Milwaukee students to include participating
religious schools - Jackson v. Benton challenged this action
- The Wisconsin Supreme Court did not allow the
programs expansion into religious schools, but
allowed the program - to include non-sectarian schools
88Wisconsin Vouchers, cont.
- In 1997, the Wisconsin legislature expanded the
school choice voucher program to include
religious schools. On remand, a district court
ruled it unconstitutional - Appealed in 1998, the Wisconsin Supreme Court
upheld publicly-funded vouchers used to fund
students in private religious schools, stating it
did not violate the Establishment Clause - On appeal, the U. S. Supreme Court
- declined to hear the case
89Ohio Vouchers
- In 1995, the Ohio state legislature enacted two
educational assistance programs for parents of
children in the struggling Cleveland Public
Schools tuition scholarships and tuition
assistance grants to pay tuition at eligible
private schools in the Cleveland Public School
District area or at participating public schools
in adjacent districts - In 1999, the Ohio State Supreme Court overturned
the program on a technicality
90Ohio Vouchers, cont.
- Appealed, the federal court ruled the
Simmons-Harris v. Goff case unconstitutional - Appealed again, the Sixth Circuit Court of
Appeals rejected the Ohio voucher plan as it
violated the First Amendments separation of
church and state provision - Appealed again, the U. S. Supreme Court, found
the Cleveland voucher program was constitutional
and did not infringe on the separation of church
and state
91Vouchers Religious Schools
- The 5-4 U.S. Supreme Court decision finally
cleared a thick fog of legal opinion regarding
vouchers to private religious schools.
92Public Funds Private or Religious Schools
- The legal conflict between the Massachusetts
parents who believed that the schools had failed
by becoming more secular in curriculum pedagogy
the more progressive legal and educational
writers of the early to mid 1800s has been
resolved. Public monies can fund private or
parochial education. - The philosophical discussion will continue.
93Tuition Tax Credits
- Instead of receiving a chit for tuition at an
alternative school, a tax credit is offered to
parents who send their school-aged children to
non-public schools, thereby reducing the parents
tax liability - Tuition tax credits were first issued at the
national level by Senators Moynihan (NY) and
Packwood (OR) - The Reagan and first Bush presidential
administrations advocated tuition tax credits
repeatedly unsuccessfully
94Minnesota Tuition Tax Credits
- In 1955, Minnesota passed a law (amended in 1976
and 1978) allowing state taxpayers to deduct
certain expenses incurred in educating their
children regardless of the type of school
attended - The deduction was limited to 500 per student in
grades K through 6 and 700 per student in grades
7 through 12
95Charter Schools
- Gained popularity during the 1990s as example of
school choice - The charter, or contract with the state,
stipulates how the school will operate and the
accountability measures that will be used to
gauge student achievement - Operate with fewer state restrictions and
constraints than regular public schools - If the charters measures are not kept, the state
may revoke the charter
96Charter Schools Mueller v. Allen, 1983
- The U.S. Supreme Court found that the loan of
textbooks to parochial school students did not
violate the First Amendments Establishment
Clause, saying that parochial schools provided
acceptable secular education
97Charter Schools Mueller v. Allen, 1983, cont.
- Local school boards were required to purchase
textbooks and lend them without charge to
students residing within that district who
attended private schools in grades 7 through 12
that complied with compulsory attendance laws
98Charter Schools Mueller v. Allen, 1983, cont.
- Charter school advocates believed that it was
easier to evade the constitutional proscription
against the use of public funds to support
religious education by suggesting that the
secular aspects of parochial schools was so
substantial that they justified receiving public
funds
99Charter Schools in the 1990s
- Under the Clinton administration, the idea of
charter schools changed dramatically - Proposed that charter schools should exist as
public schools and not in private or parochial
schools
100RedefinedCharter Schools, 1990s
- Exempted from state local regulations that
inhibit flexible management - Operated under public supervision direction
- Designed with specific educational objectives
- Non-sectarian in programs, admissions, policies,
employment practices - Not affiliated with a sectarian school or
religious institution
101RedefinedCharter Schools, 1990s, cont.
- Free of tuition or fees
- In compliance with federal civil rights
legislation - Students admitted by lottery
- Operated in compliance with state law
- In compliance with federal and state financial
audit requirements - In compliance with federal, state, local health
safety requirements
102Michigan Challenge to Charter Schools
- Michigan adopted a Charter Schools Act that had
provisions similar to the 1994 federal
legislation - The Michigan State Supreme Court had to decide if
the charter schools act were constitutional and
if charter schools constituted parochial aid to
religious schools - In 1994, the trial court determined that
Michigans charter school act was unconstitutional
103Michigan Challenge to Charter Schools, cont.
- The State Supreme Court held that since the
legislature declared the charter schools to be
public schools, - Charter schools must comply with all applicable
State Bd. Of Education laws - The State Board authorizes funding for some
Charter Schools and not others - The Michigan Charter School Act did not
constitute state aid to religious schools