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Fiscal Problems and Education Finance

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Publication Date: January 2008

Publisher(s): Tax Policy Center

Author(s): James Alm; Robert D. Buschman; David L. Sjoquist

Special Collection: John D. and Catherine T. MacArthur Foundation

Topic: Economics (Economic theory)

Keywords: School Finance; Taxes, the Budget, and the Economy; Budget Issues; Government and Philanthropy

Type: Report


Relative to previous recessions, the 2001 recession was short and not very deep. Even so, it had a significant effect on the fiscal condition of state and local governments. This report examined how the recession affected state and local government spending on K-12 education in the three years since the recession. We track the historic pattern at the national level of state and local spending on K-12 education and then turn to a state-level analysis of how K-12 education was affected by the recession, including correlations between local education spending patterns and state patterns.