
Property taxes play a crucial role in funding public schools. In the United States, property taxes are a significant source of revenue for local school districts.
The amount of property taxes collected varies significantly depending on local property values and tax rates. For example, in some states, property taxes account for over 50% of total school funding.
School districts use property tax revenue to fund a wide range of educational expenses, including teacher salaries, textbooks, and facilities maintenance.
Property Tax Funding
Property tax limitations can have a significant impact on public education funding. Some states have enacted various types of property tax limitations to address this issue.
The experience of three states in the webinar series shows that property tax limitations can be effective in ensuring adequate funding for public education. These states have implemented different types of property tax limitations to achieve this goal.
In some cases, property tax limitations have led to increased funding for public education through alternative revenue sources. Presenters from each state suggest possible policy reforms to further improve the effectiveness of property tax limitations.
States with property tax limitations often have to find creative ways to fund public education, such as through local levies or other revenue sources.
State and Local Funding

State and Local Funding is a crucial source of income for many schools. Property taxes often make up the majority of a school's funding, sometimes as much as 70 percent in Ohio as of 2008.
Local property taxes often go directly to support elementary and secondary schools, as a study by Bowling Green University found that half of all property taxes are used for this purpose. Schools tend to rely more heavily on property taxes due to cuts in federal and state funding of education.
Property taxes are a vital source of income for schools, and in many cases, they make up the majority of a school's funding, allowing them to provide quality education to their students.
State
States often have property tax, and most often the majority of property tax income will be used on education.
A large number of schools rely on property tax funding to get by.
Local taxpayers already foot the bill for more than half of all school spending in the state.
The state picks up about 35 percent of school spending, leaving a significant burden on local taxpayers.
New York has the nation's highest average school property tax rates.
Local

Local funding is a major source of support for schools. A study by Bowling Green University found that half of all property taxes went to support elementary and secondary schools.
In some states, like Ohio, property taxes make up as much as 70 percent of a school's funding. This reliance on local property taxes is partly due to cuts in federal and state funding of education.
Local control is a key advantage of property taxes, allowing schools to make decisions about how to use their funding. However, this can also lead to inequalities between wealthy and poor districts.
Controversy
The controversy surrounding property taxes and public schools is a complex issue. One major argument is that of funding inequality.
Wealthier neighborhoods collect more property taxes, which leads to better schools and more resources. This creates a vicious cycle where students from these areas tend to perform better and go on to fund even better schools.

This cycle perpetuates the idea that students from affluent areas have an unfair advantage. They have access to better schools and resources, which can lead to higher paying jobs and a higher standard of living.
As a result, the gap between the haves and have-nots grows, making it even more challenging for students from lower-income areas to succeed.
Funding Issues
The Chicago Ridge School District in Illinois spent a whopping $9,794 per child in 2013, which is well below the national average of $11,841.
This low budget is partly due to the district's demographics, with two-thirds of its students coming from low-income families and a third learning English as a second language.
The district's superintendent, Kevin Russell, admits that they can't afford "extra things" that other districts have.
Rondout School in Chicago's affluent suburbs, on the other hand, spent a staggering $28,639 per student, thanks to its small class size and high property values.
This stark contrast highlights the funding disparities between schools in affluent and low-income areas.
The district's reliance on a single nurse to serve three schools is just one example of the resource constraints faced by underfunded districts like Chicago Ridge.
Property Tax Connection

Property taxes are a crucial source of funding for public education, and some states have implemented property tax limitations to ensure adequate funding.
The Property Tax-School Funding Connection webinar series highlights the experiences of three states that have enacted property tax limitations.
These states have found that property tax limitations can have varying effects on school funding.
Presenters from each state assess the effectiveness of their efforts to ensure funding remains adequate for public education.
By exploring the experiences of these states, policymakers can learn from their successes and challenges to inform policy reforms.
Frequently Asked Questions
What is the major problem with schools being funded by property taxes?
The major problem with schools being funded by property taxes is that property values vary greatly between neighborhoods and districts, leading to uneven tax revenues. This creates significant funding disparities between schools, affecting the quality of education students receive.
Sources
- https://www.sapling.com/6499874/do-property-taxes-pay-schools
- https://reason.org/commentary/using-property-taxes-to-fund-public-schools-prompts-inequities/
- https://www.democratandchronicle.com/story/news/local/blogs/watchdog/2017/02/24/rethink-state-school-funding-drive-down-ny-property-taxes/98353298/
- https://www.npr.org/2016/04/18/474256366/why-americas-schools-have-a-money-problem
- https://www.lincolninst.edu/centers-initiatives/efficient-equitable-tax-systems/introduction-property-taxschool-funding-connection/
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