1. Federal aid to education initially was provided through a number of isolated, unrelated programs. More recently,
under No Child Left Behind, there has been an effort to develop a broadly conceived national plan for education.
What are the reasons for the federal government’s becoming more involved in education? Provide examples of
federally funded programs to substantiate your arguments.
ANSWER: Education, in accordance with the United States Constitution, has been seen as a state
responsibility, so historically the role of the federal government has been very limited.
The late 1950s through the 1970s saw an expansion of special programs targeted for
specific purposes. After retrenchment in the 1980s, there were new efforts to
coordinate programs nationwide, as is evidenced most recently in No Child Left
Behind, which has specifically targeted student academic achievement, school
accountability, and teacher quality.
DIFFICULTY: Difficult
REFERENCES: 8-3a Trends in Federal Aid to Education
LEARNING OBJECTIVES: FOED.ORNS.17.08.03Describethefederalgovernment’sresponsibilitiesin
financing PreK-12 public schooling.
KEYWORDS: Bloom’s: Analyzing
2. From the 1980s to the present, citizens and governmental representatives have taken increasing interest in holding
educators accountable for their actions. Discuss how educators have demonstrated this accountability, and identify
related issues.
ANSWER: The primary means of demonstrating accountability has been to report results (student
test scores) and the costs associated with those results. Evaluation of teachers also has
been a means of demonstrating accountability. Under NCLB, schools must
demonstrate “adequate yearly progress” in student academic achievement using
accepted achievement tests. School principals must notify parents if their child’s
teacher is not highly qualified. For schools that fail assessments, there is the threat of
reconstitution or state takeover.
DIFFICULTY: Difficult
REFERENCES: 8-4b The Accountability Movement
LEARNING OBJECTIVES: FOED.ORNS.17.08.04 – Identify major issues that have impacted the efforts to reform
school finance, and describe how the recent economic climate affects school finances.
KEYWORDS: Bloom’s: Analyzing
3. Articulate what potential problems may develop when school districts rely on property taxes as school revenue
sources?
ANSWER: When property tax trends change and the value of the houses reduce, the economy
takes a turn and can no longer support the per pupil ratio of dollars that must fund the
building, student services, and staff.
DIFFICULTY: Medium
REFERENCES: 8-1b Property Tax
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
KEYWORDS: Bloom’s: Understanding
4. The level of government that pays the highest percentage of total school revenues is the
a. local level. b. national level.
c. state level. d. federal level.
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-2 State Financing of Public Schools
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
5. The level of government that relies on the property tax as the main source of income is
a. the local level. b. the state level.
c. the federal level. d. all of the above.
ANSWER: a
DIFFICULTY: Easy
REFERENCES: 8-1b Property Tax
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Remembering
6. The property tax rate is expressed in
a. dollars. b. mills.
c. percentages. d. ratios.
ANSWER: b
DIFFICULTY: Easy
REFERENCES: 8-1b Property Tax
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Remembering
7. Asbury Elementary School needs an after-school child-care center. Of the following types of revenue, which is best
suited (and perhaps easiest to attain) for support of this project?
a. increased state income tax b. a new sales tax
c. user fees d. increased property tax
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-1c Other Sources of Local Funding
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Remembering
8. Municipal overburden is a term used to indicate
a. high financial demands for a variety of public services.
b. providing services for high-income areas.
c. limited community involvement in the city.
d. too many administrators in the city government.
ANSWER: a
DIFFICULTY: Difficult
REFERENCES: 8-1d Local Resources and Disparities
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Understanding
9. Low-income families would consider a sales tax on food to be a
a. fair tax. b. municipal overburden.
c. progressive tax. d. regressive tax.
ANSWER: d
DIFFICULTY: Easy
REFERENCES: 8-2a State Revenue Sources
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
10. What is the primary purpose of assessing user fees in a school environment?
a. to collect an additional tax revenue
b. to offset shrinking revenues from traditional sources
c. to replace property tax
d. because there is no other source
ANSWER: b
DIFFICULTY: Easy
REFERENCES: 8-1c Other Sources of Local Funding
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Remembering
11. State lotteries, a recently tapped funding source for schools,
a. are found in all 50 states.
b. are a progressive tax because the wealthy utilize them more than the poor.
c. contribute a minimal amount of a state’s revenue for education.
d. bridge the gap whenever other sources of state revenue fall short of full funding.
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-2a State Revenue Sources
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
12. As the proportion of people over sixty-five increases, it is likely that there will be
a. decreasing emphasis on the physical education curriculum.
b. decreasing conflict about school goals.
c. increasing resistance to school budget increases.
d. increasing conflict over curricular content.
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-2b States’ Abilities to Finance Education
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
13. Districts with a high number of students with special needs would lobby for state educational funding based on the
a. flat-grant model. b. foundation plan.
c. power-equalization plan. d. weighted student plan.
ANSWER: d
DIFFICULTY: Easy
REFERENCES: 8-2c State Aid to Local Districts
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
14. Many state courts have ruled that inequities in educational expenditures in districts throughout the state are
a. to be remedied by the state department of education.
b. created by the sales tax.
c. unconstitutional.
d. all of the above.
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-2d The Courts and School Finance Reform
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
15. School financing arrangements are most vulnerable to being declared unconstitutional in
a. State 1, where taxpayers claim they cannot afford any further increases in property taxes.
b. State 2, where there is no state income tax.
c. State 3, where annual revenues in all districts fall below projected needs.
d. State 4, where there are substantial differences in districts’ average spending per student.
ANSWER: d
DIFFICULTY: Easy
REFERENCES: 8-2d The Courts and School Finance Reform
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
16. Your state is trying to implement a hotly contested new finance plan that would transfer funds from wealthy districts
to poor ones. Those who support the plan probably base their arguments on which of the following issues?
a. equity b. decentralization
c. accountability d. charter schools
ANSWER: a
DIFFICULTY: Easy
REFERENCES: 8-2d The Courts and School Finance Reform
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
17. State court decisions affecting financial support of public education have sent the message that
a. if budgets reflect blatant discrepancies from one district to another within a state, the federal government may
intervene.
b. discrepancies in quality of education are not related to funding.
c. the level of financial support for public education clearly does make a difference in the quality of education.
d. a national system of providing for the financial support of public education is necessary to alleviate
discrepancies in funding.
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-2d The Courts and School Finance Reform
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
18. The largest portion of revenue for the schools is generated from _____________________.
a. personal income tax b. sales tax
c. property tax d. assessment tax
ANSWER: a
DIFFICULTY: Easy
REFERENCES: 8-2a State Revenue Sources
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
19. Given the history of federal funding of education, it is most accurate to say that
a. the federal government has never had a noticeable impact on public schools through allocation of financial
support.
b. the federal government has always supported public education financially, but this has only recently been
noticed because of budget cuts.
c. federal funding of public education has generally been tied to special projects, special legislation, or issues of
national concern such as desegregation and, more recently, academic achievement.
d. states have consistently been able to refuse federal financial support of public education rather than face the
intrusion of the federal government in a state responsibility.
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-3 Federal Education Funding
LEARNING OBJECTIVES: FOED.ORNS.17.08.03Describethefederalgovernment’sresponsibilitiesin
financing PreK-12 public schooling.
KEYWORDS: Bloom’s: Remembering
20. The shift from categorical grants to block grants in the 1980s resulted in
a. more funding for education from the federal level.
b. funding decisions shifting from the federal level to the state level.
c. more rules and regulations from the federal Department of Education.
d. greater emphasis on funding specific federal programs.
ANSWER: b
DIFFICULTY: Easy
REFERENCES: 8-3a Trends in Federal Aid to Education
LEARNING OBJECTIVES: FOED.ORNS.17.08.03Describethefederalgovernment’sresponsibilitiesin
financing PreK-12 public schooling.
KEYWORDS: Bloom’s: Remembering
21. The No Child Left Behind requirement that teachers be highly qualified is frustrating to state and local school
authorities because
a. the requirements are so extreme that very few teachers can meet the standard, thus creating teacher
shortages.
b. state departments of education cannot agree on what is meant by “highly qualified.”
c. the new requirements apply only to new teachers.
d. federal funding to states has lagged behind what the states need to cover the cost of implementing the
requirements.
ANSWER: d
DIFFICULTY: Easy
REFERENCES: 8-3a Trends in Federal Aid to Education
LEARNING OBJECTIVES: FOED.ORNS.17.08.03Describethefederalgovernment’sresponsibilitiesin
financing PreK-12 public schooling.
KEYWORDS: Bloom’s: Remembering
22. Taxpayer resistance has called for educators to be more
a. accountable for the success of programs.
b. cautious in talking with legislators.
c. innovative in program design.
d. realistic about teacher salary increases.
ANSWER: a
DIFFICULTY: Easy
REFERENCES: 8-4a Taxpayer Resistance
LEARNING OBJECTIVES: FOED.ORNS.17.08.04 – Identify major issues that have impacted the efforts to reform
school finance, and describe how the recent economic climate affects school finances.
KEYWORDS: Bloom’s: Remembering
23. Teachers and administrators are being held accountable for their actions because of pressure primarily from
a. parents. b. principals.
c. school boards. d. students.
ANSWER: a
DIFFICULTY: Easy
REFERENCES: 8-4b The Accountability Movement
LEARNING OBJECTIVES: FOED.ORNS.17.08.04 – Identify major issues that have impacted the efforts to reform
school finance, and describe how the recent economic climate affects school finances.
KEYWORDS: Bloom’s: Remembering
24. Additional taxes that can be applied to education include
a. excise, gift tax, severance tax, and corporate income tax.
b. excise tax and corporate tax.
c. gift and excise tax.
d. severance tax.
ANSWER: a
DIFFICULTY: Easy
REFERENCES: 8-2a State Revenue Sources
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
25. Recent reform efforts in school funding, such as tuition tax credits, voucher plans, and choice plans, are evidence
that
a. there is growing concern that tax revenues will never be high enough to fund public schools adequately.
b. no tax plan is fair, and the public should have the freedom to dictate where tax revenues are spent.
c. private schools are inherently better than public schools.
d. there is growing attention to, and public support for, competition among schools so that parents can identify
and support the best schools and exert more control over where their children go to school.
ANSWER: d
DIFFICULTY: Easy
REFERENCES: 8-4c Tax Credits, Educational Vouchers, and School Choice
LEARNING OBJECTIVES: FOED.ORNS.17.08.04 – Identify major issues that have impacted the efforts to reform
school finance, and describe how the recent economic climate affects school finances.
KEYWORDS: Bloom’s: Remembering
26. The purpose of educational vouchers is to
a. encourage educational reform in private schools.
b. facilitate the collection of taxes used to support schools.
c. initiate tax reform in the states.
d. provide a choice of schools for students.
ANSWER: d
DIFFICULTY: Easy
REFERENCES: 8-4c Tax Credits, Educational Vouchers, and School Choice
LEARNING OBJECTIVES: FOED.ORNS.17.08.04 – Identify major issues that have impacted the efforts to reform
school finance, and describe how the recent economic climate affects school finances.
KEYWORDS: Bloom’s: Remembering
27. One of the increasing trends in funding for education is the growth of the ___________ population, who may no
longer have a vested interest in increasing taxes for school.
a. bilingual b. senior citizen
c. young couples d. migrant
ANSWER: b
DIFFICULTY: Easy
REFERENCES: 8-2b States’ Ability to Finance Education
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
28. The school infrastructure consists of the
a. community support for schools.
b. personnel in the state department of education.
c. physical facilities of the school.
d. tax base that supports the school.
ANSWER: c
DIFFICULTY: Easy
REFERENCES: 8-4e School Infrastructure and Environmental Problems
LEARNING OBJECTIVES: FOED.ORNS.17.08.04 – Identify major issues that have impacted the efforts to reform
school finance, and describe how the recent economic climate affects school finances.
KEYWORDS: Bloom’s: Remembering
29. The _____________ Supreme Court declared that the entire state educational system of funding schools with
property tax was unconstitutional, which prompted significant reform.
a. California b. Michigan
c. New York d. Kentucky
ANSWER: d
DIFFICULTY: Easy
REFERENCES: 8-2d The Courts and School Finance Reform
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
30. One of the driving forces behind the federal government increasing funding for education was the
__________________.
a. launch of the Sputnik satellite in 1957
b. segregation legislation
c. launch of the Space Shuttle
d. Civil Rights Act of 1964
ANSWER: a
DIFFICULTY: Easy
REFERENCES: 8-3 Federal Education Funding
LEARNING OBJECTIVES: FOED.ORNS.17.08.03Describethefederalgovernment’sresponsibilitiesin
financing PreK-12 public schooling.
KEYWORDS: Bloom’s: Remembering
31. What are the criteria for evaluating a tax? Why are these criteria so important?
ANSWER: A tax should (a) not cause unintended economic disorders, (b) be equitable, (c) be
collected easily, and (d) be responsive to changing economic conditions. The criteria
are important because they are a guide for devising means of taxation that will
generate the needed revenue without creating additional problems.
DIFFICULTY: Easy
REFERENCES: 8-1 Tax Sources of School Revenues
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Remembering
32. How is property tax calculated?
ANSWER: The market value of a property is first determined. Then the market value is converted
into an assessed value, which in most cases is usually one-fourth or one-third of the
market value. Then the property tax rate, expressed in mills, (dollars of tax per
thousand dollars of assessed value) is multiplied by the assessed value.
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Understanding
DIFFICULTY: Medium
REFERENCES: 8-1b Property Tax
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
33. What failures may occur with the current method of calculation of property tax?
ANSWER: A lack of uniformed valuation may lead people owning equivalent properties to pay
different taxes.
DIFFICULTY: Easy
REFERENCES: 8-1b Property Tax
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Remembering
34. Why do some large cities have difficulty financing education?
ANSWER: Property taxes are usually high there, which results in some businesses and middle-
income residents leaving for the suburbs. Then the tax base becomes even smaller for
the same amount of services, including education that must be funded. Large cities are
also plagued by municipal overburden, which is caused by a high population density and
a high proportion of disadvantaged and low-income citizens.
DIFFICULTY: Medium
REFERENCES: 8-1d Local Resources and Disparities
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Understanding
35. What are the positive features of the sales tax?
ANSWER: Sales taxes rate quite well on the criteria for taxes. They are easy to administer and
collect. When food and prescription medicine are not included, sales taxes meet the
criterion of equity. They are also responsive to changing economic conditions.
DIFFICULTY: Easy
REFERENCES: 8-2a State Revenue Sources
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Understanding
36. Why is the flat-grant model of state aid to local schools characterized as “the most unequal” method of financing
schools?
ANSWER: This model simply provides aid to local school districts based on a fixed amount of
funds multiplied by the number of students in attendance in the district’s schools. This
does not take into account special circumstances that exist among school districts in the
state, such as the number of students with special needs, the percentage of low-income
students, special programs, and the wealth of the school district and its ability to raise
revenue.
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Remembering
REFERENCES: 8-2c State Aid to Local Districts
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
37. How might an increasingly larger proportion of elderly people affect educational funding?
ANSWER: Older people who no longer have children in school are generally more resistant to
taxes that support schools. As that part of the population increases, the resistance to
increasing school funding is likely to increase.
DIFFICULTY: Easy
REFERENCES: 8-2b States’ Ability to Finance Education
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Remembering
38. What conclusions can be drawn from court rulings about the financing of public education?
ANSWER: Many state courts have ruled that inequities in educational expenditures are
unconstitutional if they result in large disparities in per-pupil expenditures based on
wealth differences among school districts. These disparities often are the result of
differences in property taxes. States need to do more to close the gap between wealthy
and low-income school districts.
DIFFICULTY: Difficult
REFERENCES: 8-2d The Courts and School Finance Reform
LEARNING OBJECTIVES: FOED.ORNS.17.08.02 – Examine how states generate revenue to fund education, and
describe how those funds are distributed to local school districts.
KEYWORDS: Bloom’s: Understanding
39. What benefits do contracts for exclusive products rights have on a district?
ANSWER: The potential to have large fees generated from a contract to sell only the specific
brands of items at all of their events and in the school buildings; the potential to be a
“multimillion”dollardeal.
DIFFICULTY: Easy
REFERENCES: 8-1c Other Sources of Local Funding
LEARNING OBJECTIVES: FOED.ORNS.17.08.01 – Analyze property taxes as a school revenue source and the
problems created by relying on this form of taxation for local school support.
KEYWORDS: Bloom’s: Remembering
40. What are the arguments against educational vouchers?
ANSWER: Opponents maintain that educational vouchers would lead to increased segregation of
low-income, minority, and low-ability students. Critics also claim that public and private
schools would be split along socioeconomic lines and that public schools would have
reduced financial support.
DIFFICULTY: Easy
REFERENCES: 8-4c Tax Credits, Educational Vouchers, and School Choice
LEARNING OBJECTIVES: FOED.ORNS.17.08.04 – Identify major issues that have impacted the efforts to reform
KEYWORDS: Bloom’s: Remembering