An equity analysis of Michigan's school finance system.

Abstract

This study of school finance equity in Michigan had three purposes: (1) to develop an underst and ing of equity aspects in the Michigan school finance system, (2) to assess the effects of school finance reform in the 1970's in Michigan in terms of fiscal equity, and (3) to identify a series of factors that need to be taken into account by policy makers committed to developing a more equitable school finance system in the late 1980's. Three equity principles were employed in this study: horizontal equity, equality of opportunity, and vertical equity. For the period studied, three questions were addressed: (1) Has school finance equity in Michigan improved, worsened, or stayed the same over the years studied? (2) Does the equity measure make a difference when holding the equity object constant? and (3) Does the equity object make a difference when holding the equity measure constant? The study generated a series of empirical findings. When holding the equity object constant, the equity measure did make a difference in terms of horizontal equity, equality of opportunity and vertical equity. The only two exceptions were equality of opportunity with respect to district wealth for the dollar-input-equity objects, and equality of opportunity with respect to race for the human-resource-input-equity objects. When holding the equity measure constant, the equity object also made a difference for all three equity principles. These findings lead to the conclusion that equity trends in Michigan school finance over the years from 1978-79 to 1986-87 were determined largely by the equity measure or the equity object employed. Different combinations of equity measures and equity objects portrayed different equity pictures. and different values are inherent in both the choice of equity objects and the choice of equity measures. Since this is the case, we should leave much freedom of choice to researchers and policy makers, urging only that they set forth clearly the values inherent in their choices.