The revenue-tax rate relationship in New York State school districts: A policy evaluation

This longitudinal study of 702 New York State school districts develops a tool for assessing the effects of state education aid formulas on local school district finances. Evidence for a negative Tiebout effect was found. The group with the significantly higher mean tax rate and mean tax rate growth had a significantly lower mean tax base growth over the period studied. In addition, a significant relationship was found between local school tax rates and local school revenues for 57% of the districts but a nonsignificant relationship was discovered for 43%. Also, evidence of a regressive tax system was developed; the higher income and higher tax base per pupil districts had a significantly lower mean tax rate and mean tax rate growth than the poorer districts