Introduction to the Property Tax–School Funding Connection
Property taxation and school funding are closely linked in the United States: 45 percent of total public K–12 education revenues come from local governments and 80 percent of the local share comes from property taxes. In a well-structured school finance system, both major funding sources—property tax and state aid—will ensure that schools can provide an adequate education for all students equitably and efficiently.
We have published a variety of resources designed to promote basic understanding of the relationship between property taxation and public K–12 education funding.
Rethinking the Property Tax-School Funding Dilemma
This report updates The Property Tax–School Funding Dilemma, a Lincoln Institute Policy Focus Report published in 2007. It describes the joint role of the property tax and state aid in funding public K–12 education, analyzes the strengths and weaknesses of each funding source, presents case studies of five states, and concludes with a dozen recommendations. Some recommendations seek to make the local property tax more equitable and efficient; others suggest ways to improve state aid.
Resources
Effects of Reducing the Role of the Local Property Tax in Funding K-12 Education
Daphne Kenyon and Semida Munteanu New Hampshire: Heavy Property Tax Reliance and Longstanding School Finance Litigation
Semida Munteanu, Bethany Paquin, and Sydney ZelinkaThe Property Tax–School Funding Connection
This webinar series explores the experience of three states that have enacted various types of property tax limitations and their efforts to ensure that funding remains adequate for public education. Presenters from each state assess the effectiveness of those efforts and suggest possible policy reforms.
Watch the Recordings