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Local option sales tax, state capital grants, and disparity of school capital outlays: The case of Georgia

Zhirong Jerry Zhao (University of Minnesota)
Wen Wang (Indiana University-Purdue University Indianapolis)

Journal of Public Budgeting, Accounting & Financial Management

ISSN: 1096-3367

Article publication date: 1 March 2015

Abstract

In recent years, the disparity of school capital outlays has received increasing attention as many schools are facing challenges to meet increasing capital needs. With data of Georgia county school districts during FY2003-2008, this study examines how the disparity of school capital outlays is affected by the mix of capital revenues. Using multiple methods including spatial data analysis, quartile analysis, and inequality decomposition, we find that (1) school capital outlays in Georgia counties are negatively associated with the percentage of black population and the poverty rate, (2) state capital grants do not play an equalization role in school capital outlays, and (3) the use of ESPLOST has some equalizing effects on the funding for school facilities, contrary to earlier findings in the literature.

Citation

Zhao, Z.J. and Wang, W. (2015), "Local option sales tax, state capital grants, and disparity of school capital outlays: The case of Georgia", Journal of Public Budgeting, Accounting & Financial Management, Vol. 27 No. 2, pp. 129-152. https://doi.org/10.1108/JPBAFM-27-02-2015-B001

Publisher

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Emerald Publishing Limited

Copyright © 2015 by PrAcademics Press