Money and Schools / Edition 2

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For future principals and others enrolled in courses on School Finance, this book explains and demonstrates the relationship between money and student achievement.

New to this edition
- Includes updated information on the ever-changing landscape of school finance.
- Co-author Faith E. Crampton has joined the author team, applying the expertise she has acquired in public education, state government, national education and legislative organizations, and universities.
- Chapters now include a section titled "Point - Counterpoint", offering opposing views on issues involving money and schools along with incisive questions to help guide classroom debates and/or individual analysis.
- Case studies throughout the text provide opportunities to apply the knowledge gained in each chapter.
- Also includes web sites and extensive recommended bibliography.

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Editorial Reviews

Overviews funding concepts, daily funding operations, and the future of school funding, with discussion of the effect of money on schools, the structure of school governance, basic funding structures, budget planning, legal liability, site-based leadership, and budgeting for various aspects of schools, such as instruction and school infrastructure. Of interest to school administrators, classroom teachers, and board of education members. This edition contains follow-up projects after each chapter, updated information on school- based budgeting and accountability, and expanded coverage of funding issues and policy perspectives. Thompson is affiliated with Kansas State University; Wood is with the University of Florida. Annotation c. Book News, Inc., Portland, OR (
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Product Details

  • ISBN-13: 9781930556171
  • Publisher: Eye On Education, Incorporated
  • Publication date: 1/1/2001
  • Edition description: Older Edition
  • Edition number: 2
  • Pages: 390

Table of Contents

About the Authors iii
Acknowledgments v
Foreword to the Second Edition xv
Part I Overview of Broad Concepts
1 Schools, Values, and Money 3
The Context of Public Education 3
What Are Schools Becoming? 5
Where Did Schools Come From? 5
What Should Schools Be Doing? 7
What Are Schools Capable of Doing? 9
What Is the Effect of Money on Schools? 9
What Happens When Schools Get More (or Less) Money? 14
Where Public Schools May Be Headed 16
Suggested Follow-up Projects 17
2 Funding Schools: A Policy Perspective 19
A More Expansive View 19
What Is the Scope of Education Finance in America? 19
Fiscal Growth and Expenditure 20
How Are Education and Economics Related? 23
Economics Defined 23
Education as an Economic and Social Good 24
Returns on Educational Investment 28
Education and Socioeconomic Investment 33
Recent Economic Thought 34
What Is the Structure of School Governance in America? 37
Brief Historical Roots of American Education 37
Development of School Organization in America 40
From Where Do Schools Derive Fiscal Support? 44
Federal Support for Schools 44
State Support for Schools 50
Local Support for Schools 55
What Constitutes Adequate and Equitable Funding for Schools? 59
Origins of School Funding Challenges 59
Can Schools Serve Economics, Equality, Productivity, and Liberty? 70
Suggested Follow-up Projects 71
3 Basic Funding Structures 73
The Context of Funding 73
Revenue for Schools 74
What Is the Overarching Tax System? 74
What Is the Federal Tax System? 75
What Is the State Tax System? 76
What Is the Local Tax System? 79
Tax System Summary 80
Funding for Schools 81
What Are State Aid Formulas? 81
Where Did Aid Formulas Come From? 82
What Is a Fair Formula? 85
How Do States Fund Schools? 97
Are There Innovations on the Horizon? 99
Suggested Follow-up Projects 100
Part II Operationalizing School Money
4 School Funds Accountability and Professionalism 105
Setting the Stage 105
School Funds Accountability 106
What Is Accountability? 106
What Are Fiduciary Responsibilities? 107
How Does the Accounting Process Help? 110
How Is School Money Set Up? 113
How Does School Money Get Tracked? 117
Revenue Structure 117
Expenditure Structure 120
The Accounting Transaction 127
Auditing 130
A Final Word About Professionalism 135
Suggested Follow-up Projects 136
5 Budget Planning 139
Budgets and Schools 139
Conceptualizing Budgets 140
What Are the Basic Budget Concepts? 140
Organizing for Budgeting 143
What Are the Common
What Is a Good Budget Framework? 149
Constructing Budgets 151
What Is the Budget Model? 151
What Is the General Budget Process? 153
How Are Individual Schools Funded? 171
What Is the Role of Stakeholders? 174
Suggested Follow-up Projects 176
6 Budgeting for Personnel 177
The General Landscape 177
The Personnel Function 178
What Is the Scope of the Personnel Function? 179
Personnel Compensation Policies and Procedures 187
What Is the Role of Compensation? 187
Other Issues of Personnel Budgeting 201
What About Merit Pay? 201
What About RIF and Other Dismissals? 204
What About Due Process? 207
What Is the Role of Stakeholders? 208
Suggested Follow-up Projects 209
7 Budgeting for Instruction 211
The Big Picture 211
The Planning Function 211
What Is Instructional Planning? 212
Organizational Options 213
How Are Schools Organized? 214
Instructional Budget Concepts 217
What Are Instructional Budgets? 218
What Are the Sources of Revenue? 221
What Are the Elements of Budgeting for Instruction? 224
What Does an Instructional Budget Look Like? 227
Wrap-up 229
Suggested Follow-up Projects 230
8 Budgeting for Student Activities 237
Activities and Schools 237
What Is the Role of Activities? 238
Budgeting for Activities 239
What Are Activity Funds? 239
What Are the Controls on Activity Funds? 241
What About Nonactivity Funds? 247
What Does an Activity Fund Report Look Like? 249
A Final Word of Caution 249
Suggested Follow-up Projects 251
9 Budgeting for School Infrastructure 253
Physical Needs in Perspective 253
Nature and Size of School Infrastructure 253
What Is the Role of School Infrastructure? 254
How Is School Infrastructure Aided? 266
How Is the Local Cost Share Funded? 271
Facility Planning and Maintenance 276
What Is the Role of Facility Planning? 276
What Is the Role of Maintenance and Operations? 282
Wrap-up 286
Suggested Follow-up Projects 286
10 Budgeting for Transportation and Food Service 289
Setting the Stage 289
The Role of Auxiliary Services 290
The Transportation Function 290
What Are the Origins and Purpose? 291
What Is Transportation Law? 293
How Is Transportation Funded? 297
What Other Issues Are Relevant? 302
The Food Service Function 305
What Are the General Issues? 305
How Is Food Service Funded? 306
What Other Issues Are Relevant? 309
Wrap-up 314
Suggested Follow-up Projects 315
11 Legal Liability and Risk Management 317
Modern Realities 317
The Law and Schools 317
What Does the Law Have to Do with Schools? 318
The Derivation of School Authority 319
What Is the Origin of Liability? 322
Sovereign Immunity 322
Tort Liability 328
What Does All This Mean? 343
Suggested Follow-up Projects 344
Part III A View of the Future
12 Site-Based Leadership 347
Pulling It Together 347
The Site Concept 347
Framework for Implementation 349
What Is the Strategic Concept? 349
What Is the Role of the Principal? 354
What Is the Role of Central Office? 355
What Is the Role of the Site Council? 356
What Are the Budget Issues? 360
Final Comments 365
Suggested Follow-up Projects 366
13 Future Trends in School Funding 367
The Big Picture 367
What Are the Issues? 367
Lessons from this Book 368
Future Issues in School Funding 371
Politics of Money 372
The Economy 373
Equity, Excellence, Adequacy, and Efficiency 374
Educational Choice 375
Devolution of Governance 377
A Final Word 377
Suggested Follow-up Projects 378
Index 379
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