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University Microfilms International 300 N INFORMATION TO USERS This was produced from a copy of a document sent to us for microfilming. While the most advanced technological means to photograph and reproduce this document have been used, the quality is heavily dependent upon the quality of the material submitted. The following explanation of techniques is provided to help you understand markings or notations which may appear on this reproduction. 1.The sign or “target” for pages apparently lacking from the document photographed is “Missing Page(s)”. If it was possible to obtain the missing page(s) or section, they are spliced into the film along with adjacent pages. This may have necessitated cutting through an image and duplicating adjacent pages to assure you of complete continuity. 2. When an image on the film is obliterated with a round black mark it is an indication that the film inspector noticed either blurred copy because of movement during exposure, or duplicate copy. Unless we meant to delete copyrighted materials that should not have been filmed, you will find a good image of the page in the adjacent frame. 3. When a map, drawing or chart, etc., is part of the material being photo­ graphed the photographer has followed a definite method in “sectioning” the material. It is customary to begin filming at the upper left hand comer o f a large sheet and to continue from left to right in equal sections with small overlaps. If necessary, sectioning is continued again—beginning below the first row and continuing on until complete. 4. For any illustrations that cannot be reproduced satisfactorily by xerography, photographic prints can be purchased at additional cost and tipped into your xerographic copy. Requests can be made to our Dissertations Customer Services Department. 5. Some pages in any document may have indistinct print. In all cases we have filmed the best available copy. University Microfilms International 300 N. ZEEB ROAD. ANN ARBOR, Ml 48106 18 BEDFORD ROW, LONDON WC1R 4EJ, ENGLAND 8015919 Pa y t o n , Jim m y Ja y THE EFFECTS OF THE EQUAL YIELD FORMULA ON SCHOOL FINANCE IN OHIO The Ohio Stale University Ph.D. 1980 University Microfilms International 300 N. Zeeb Road, Ann Arbor, MI 48106 18 Bedford Row, London WC1R 4EJ, England THE EFFECTS OF THE EQUAL YIELD FORMULA ON SCHOOL FINANCE IN OHIO DISSERTATION Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy in the Graduate School of The Ohio State University By Jim J. Payton, B.S., M.A. ***** The Ohio State University 1980 Reading Committee: Approved By 'f Frederick D. Stocker j * g j/ f /(jS / Walter G. Hack i f Adser John J. Kennedy Educational/Foundations apd Research ACKNOWLEDGEMENTS The completion of this study would not have been possible without the assistance of many people. At the risk of leaving some persons unmentioned I would like to thank: - the members of my committee for th e ir guidance throughout the project; - Bill Harrison, who helped me get started; - Rodney Neff, Dan Brown and Phil Detamore of the Ohio Department of Education who facilitated the data acquisition for this study; - Dr. Bruce Gensemer who took the time to answer my questions and give me advice; - Barb Smith who typed, typed and retyped; and - the school district superintendents who returned the survey questionnaire. Finally, I would also like to express my appreciation to my children, Keely and Drew, who did without a full-time father and to my wife, Glenda, who did without a full-time husband so that this study could be completed. VITA December 19, 1946 . Born - Dayton, Ohio EDUCATION 1969 ..................................... B.S. Otterbein College, Westerville, Ohio Major: Mathematics and Education Minor: Economics 1 9 7 1 ..................................... M.A. in Economics, The Ohio State University, Columbus, Ohio WORK EXPERIENCE 1969-1971 ............................ Research Assistant and Teaching Assistant, Department of Economics, The Ohio State Uni versity 1971-1973 ............................ Tax Economist, Ohio Department of Taxation, Columbus, Ohio 1973-1975 Research Associate, Center for Human Resource Research, The Ohio State University, Columbus, Ohio 1975-1977 ............................ Evaluation Coordinator, Ohio Commission on Aging, Columbus, Ohio 1976 ..................................... Consultant, Education Review Committee, Ohio General Assembly 1977-Present ................... Educational Assessment Consultant, Ohio Department of Education, Columbus, Ohio Fields o f Study Research Methodology School Administration Program Evaluation School Finance i i i TABLE OF CONTENTS Page ACKNOWLEDGEMENTS.................................................' ...................................................... ii VITA....................................................... iii LIST OF TABLES................................................................................................................. vi LIST OF FIGURES............................................................................................................ viii Chapter I. INTRODUCTION AND BACKGROUND ............................................................... 1 A Historical Development of School Finance ................... 1 Sources for Revenue for Education ...................................... 1 The Evolution of Funding Systems .......................................... 5 History of School Finance in Ohio ...................................... 10 The Present S tu d y ........................................................................... 21 II. LITERATURE RELATED TO THE PRESENT STUDY: A REVIEW . 36 Expenditure Determinants Studies .......................................... 37 Theoretical Models for Prediction and Analysis . 44 Evaluations of State Aid Formulas ...................................... 57 Ohio Evaluation Studies ............................................................. 74 III. METHOD................................................................................................................. 85 Variation Analysis ........................................................................... 86 Fiscal Neutrality Analysis ........................................................ 92 Incentive for Effort Analysis .... ............................ 104 IV. RESULTS............................................................................................................. 108 Variation Measures ........................................................................... 108 Fiscal Neutrality Analysis Results ...................................... 116 Incentive for Effort Analysis ............................................... 127 Open-Ended Comments from Questionnaire ............................ 137 V. SUMMARY AND CONCLUSIONS....................................................................... 140 Sum m ary .................................................................................................. 140 Conclusions ........................................................................................ 143 D iscussion ............................................................................................. 146 Recommendations for Further Research .................................... 152 iv TABLE OF CONTENTS Page APPENDIXES A. Definition of Variables ....................................................................... 156 B. District Type Definitions ................................................................... 160 C. Regression Tables and Survey Instrument ................................... 162 BIBLIOGRAPHY ................................................................................................................ 167 v LIST OF TABLES Table Page 1 Distribution of Elementary and Secondary School Funds by Source: United States, 1919-20 to 1975-76 ................................................................................................................ 4 2 Distribution of Ohio Elementary and Secondary School Funds by Source: 1970-71 to 1977-78 16 3 Percentage of Funds Wealth Neutral by Phase-In Level for Five District State Model ............................................... 79 4 Percentage of Funds Wealth Neutral for Selected Phase-In Levels: All 617 Districts ............................................... 79 5 Characteristics of Selected Variation Measures ................... 91 6 Combinations of Dependent and Independent Variables Used in Simple R e g re s s io n s . 95 7 Independent Variables Included in Multiple Regressions with Capacity Measures ............................................... 96 8 Variation Measures for Total Operating Expenditures Per Pupil for All Districts, 1974 to 1979 .................................. 109 9 Percentage Change in Variation Measures Caused by Distribution of Basic State Aid Being Added to Other State Aid plus Local Revenue for all D istricts, 1974 to 1979 ........................................................................... 113 10 Measures of Variation Among School D istrict Types of Total Operating Expenditures Per Pupil, 1974 to 1979 115 2 11 R Values for Representative Simple Regressions, 1974 to 1979 117 12 Regression Coefficients of Property Wealth Measures of Multiple Regression with TOPEPP or TOPEWP as the Dependent Variable, 1974 to 1979 120 vi LIST OF TABLES Table Page 13 Gini Coefficients for Lorenze Curves Using TOPEX on Vertical Axis and Weighted and Unweighted Students Ranked by Various Wealth Measures on Vertical Axis, 1974 to 1979 ..................................................................
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