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Date

2019-05

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The purpose for conducting this study was to determine whether inequitable capital outlay capacity, as defined by district valuation, was associated statistically with the following cost-saving measures: implementation of a 4-day school week, reduction in instructional time, or increasing class sizes. Traditionally, these cost-saving measures are associated with expenditures in a schools district’s general fund; however, the current study builds upon previous research by Hime and Maiden (2017) who documented an advantage for districts with healthy capital outlay from “crossover funding,” which are expenditures allowable from multiple revenue sources. The utilization of crossover funding creates a disequalizing effect on equitably distributed revenue. When budget reductions occur in state aid, logic follows all districts should be equally impacted because the revenue is distributed equitably. Therefore, district wealth should not be associated with these operational cost-saving measures. This study found statistically significant relationships between schools districts’ per-pupil valuations, a 4-day school week, reductions in instructional time, and increased class sizes, indicating that inequitable capital funding in Oklahoma was associated with a decrease in equity for state aid revenue. Specifically, class sizes were inversely associated with district wealth across all years of the study. The results indicate the more than 600,000 Oklahoma students in districts with low property values are disadvantaged by larger classes, a 4-day school week, and a decreased amount of instructional time compared to their peers in wealthier districts.

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Education, Finance, Capital Outlay

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