The Impact, On Equity, Of Raising The Equalization Factor In The North Dakota Foundation Aid Formula
Date of Award
11-19-2008
Document Type
Dissertation
Degree Name
Doctor of Education (EdD)
Department
Educational Leadership
First Advisor
Larry A. Klundt
Abstract
From 1973-2006, the North Dakota Legislative Assembly had been trying to achieve equity in the school foundation aid formula by multiplying an equalization factor times the taxable valuation in each local school district and then withholding this amount from the school district's entitlement. The money recaptured by the state as a result of the equalization factor was then used to increase the per pupil payment. Since its inception in 1973, the equalization factor rose from 21 mills to its high level of 41 mills in 2006. The perception was that every time the equalization factor was increased, the state foundation aid program became more equalized. This study compared the equalization effect of setting the equalization factor at 41 mills, 113 mills, and 185 mills to see if greater equalization actually occurred when the equalization factor was raised. The study also examined the effect of applying the equalization factor to federal and county revenue. School district financial data publicly available from the North Dakota Department of Public Instruction was manipulated to determine the effects on equity of raising the equalization factor in the North Dakota foundation aid formula. The F Max rest measured significant differences in variances of general fund dollars available per pupil expenditures when the equalization factor was increased and applied to federal and county revenue. Results from the study indicated that the equalization factor in the North Dakota foundation aid formula did what it was intended to do. It redistributed dollars for general fund expenditures from districts with a high taxable valuation per pupil to districts with a low per pupil taxable valuation. However, in this study, the redistribution of dollars from high wealth districts to low wealth districts did not reach a level of significance at either the .05 or .01 level.
Recommended Citation
Bitz, Michael A., "The Impact, On Equity, Of Raising The Equalization Factor In The North Dakota Foundation Aid Formula" (2008). Theses and Dissertations. 8023.
https://commons.und.edu/theses/8023