AN ANALYSiS OF SELECTED ASPECTS
OF THE PUBLIC SCHWL FINANCE
SYSTEM IN MICHIGAN
Thais {or the Degree of Ph. D.
MICHIGAN STATE UNWERSiTY
Jeung Rhee
1961
W4 Lillie WWW/ii I
850 2670
This is to certify that the
L j;- .: jhe'sii Entitled.
"‘”Zh”in5t§?is‘o€ Selected ASpects
- of-the.Pubiic School Finance System
in Michigan
r.—... - _.. ._ 9.. . ._ ‘
_ ».. . ,
_,. .. .. v . no. «9 '-
presented by
Jeung Rhee
has been accepted towards fulfillment
of the requirements for
_Eh.D.._ degree in Mn
Dr. Donald J. Leu
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( «_ ').I’ 1,111,: - ._,“‘ (K—
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Major profeésor
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ABSTRACT
AN ANALYSIS OF SELECTED ASPECTS
OF THE PUBLIC SCHOOL FINANCE
SYSTEM IN MICHIGAN
by Jeung Rhee
I. The Purpose
This study proposed to examine quantitatively selected
aspects of the state public school finance system in Michigan.
More specifically, the main purposes of the study were:
1. To analyze quantitatively the differences in each
of the selected financial and educational factors among
selected groups (types) of K-12 school districts classified
in terms of financial need, ability, and effort.
2. To identify the general relationships between each
of the selected financial and educational factors and each of
the three variables of financial need, ability, and effort.
II. Methodologyp
1. The basic data of this study were derived from the
Annual Reports for 1959-60 and the answers to the Special
Questionnaires sent to the State Department of Public In-
struction from the 535 K—12 school districts in Michigan.
Jeung Rhee
2. (a) Twenty-two groups (types) of school districts
comprising 520 K-lZ school districts were selected.
(b) Five financial factors and five educational
factors were chosen for the purpose of statistical analysis.
(c) The statistical method deemed appropriate for
examining the differences of the selected factors among the
22 different types of school districts was the analysis of‘
variance.
(d) The Spearman rank correlation coefficient tech-
nique was employed in order to identify the general re-
lationships between the differences of each of the selected
factors and each of the three variables of financial need,
ability, and effort.
III. Results
1. All null hypotheses of no significant differences
among group means of each of the selected factors were re-
jected by the F tests at the .05 level of significance;
that is, the differences of each of the ten selected factors
did, in fact, differ significantly.
2. The tests of the significance of differences among
group means of each of the selected factors by use of the "t"
at the .01 level of significance revealed that:
(a) The least number of significant differences
re:
existed
the tote
total nu
existed .
the totaj
receipts.
differenc
tnan that
the .10 a
(
in each 0
was eithe
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and eduCa‘
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ClusiOns .
Jeung Rhee
existed in educational factor 2, that is, the proportion of
the total number of teachers holding certificates to the
total number of the teaching staff.
(b) The greatest number of significant differences
existed in financial factor 5, that is, the proportion of
the total amount of general fund property taxes to the total
receipts.
(c) Generally viewed, the total number of significant
differences of the selected educational factors was much less
than that of the selected financial factors.
3. The Spearman rank correlation coefficient tests at
the .10 and .02 levels of significance indicated that:
(a) The most contributive variable to the differences
ixteach of the selected financial and educational factors
was either financial need or financial ability.
(b) Financial effort did not have any significant
relationships with the differences of the selected financial
and educational factors.
(c) The directions of the relationships, positive or
inverse, differed according to the factors observed.
IV. Conclusions
The findings of the present study led to the following con-
clusions:
Jeung Rhee
1. Observed in terms of the ideals of equal educational
opportunity, the present Michigan State Aid Formula is far
from being sufficient or adequate.
2. More effective measures of school district reorgani-
zation and more positive ways of adjusting the disparity in
financial ability are necessary to attain the ideals of
equal educational opportunity.
3. Further investigations need to be conducted to find
out if the existing policies and practices of "participation
millage" requiring local effort and initiative, under the
present Michigan State Aid Formula, really do provide an
effective basis for the sound development of public school
education in Michigan.
AN ANALYSIS OF SELECTED ASPECTS
OF THE PUBLIC SCHOOL FINANCE
SYSTEM IN MICHIGAN
By
Jeung Rhee
A THESIS
Submitted to
Michigan State University
in partial fulfillment of the requirements
for the degree of
DOCTOR OF PHILOSOPHY
College of Education
1961
ACKNOWLEDGEMENTS
The writer wishes to express his sincere appreciation
and gratitude to those who have contributed to the development
and completion of this study, which was initiated as a
university project.
Special acknowledgement is due to Dr. Donald J. Leu,
the chairman of the doctoral committee, who has given the
writer constant encouragement, direction, and patient counsel
at every step throughout the study.
Grateful appreciation is extended:
To other members of the doctoral committee, Dr. Fred J.
Vescolani, Dr. John X. Jamrich, Dr. James W. Costar, and
Dr. Wesley R. Fishel, who gave many valuable suggestions and
advice.
To Dr. Karl T. Hereford, Dr. Stanley E. Hecker, and Dr.
James H. Stapleton for their suggestions and guidance con-
cerning the theoretical framework, data treatment, IBM com-
PUtation process, and statistical analysis of the study.
To Dr. Elwood P. Lawrence, Dr. Donald W. Urquidi, other
faculty members, his fellow graduate students, and Mrs. Jean
NiCholas, who gave generously of their time and effort.
To the State Superintendent of Public Instruction and his
Staff. the members of the Michigan State Legislature, and
ii
I Hinged]
the Michigan Education Association for their understanding
and helpful assistance in the collection of the data and
the development of the study.
To the Korean Foundation and to the Board of Trustees
of Michigan State University for their financial support,
which made the completion of the study possible, and for
granting an education fellowship and scholarships during
the writer's period of study at the University.
Finally, the writer is deeply indebted to his wife,
Byong Seon, and his children, Jea In, Yeong, and Hong, and to
Dr. and Mrs. Raymond A. Olson and Mr. and Mrs. Harry L.
Kitselman, for their inspiration and understanding during
the writer's stay in the United States.
iii
Mi
Su
III, CLAs
In:
C12
C15
TABLE OF CONTENTS
CHAPTER PAGE
I. INTRODUCTION. . . . . . . . . . . . . . . . . 1
Statement of the Problem. . . . . . . . . . 1
Definition of Terms Used. . . . . . . . . . 4
Procedures. . . . . . . . . . . . . . . . . 6
Delimitations of the Study. . . . . . . . . 9
Organization of the Study . . . . . . . . . 10
Summary . . . . . . . . . . . . . . . . . . 10
II. REVIEW OF THE LITERATURE. . . . . . . . . . . 12
Local Control of Education and Equal
Educational Opportunity . . . . . . . . . 13
Public School Finance and the Quantity
and Quality of Education. . . . . . . . . 31
Michigan State Aid Formula. . . . . . . . . 42
Summary . . . . . . . . . . . . . . . . . . 57
III. CLASSIFICATION OF THE SCHOOL DISTRICTS. . . . 62
Introduction. . . . . . . . . . . . . . . . 62
Classification by Need. . . . . . . . . . . 64
Classification by Ability . . . . . . . . . 69
Classification by Effort. . . . . . . . . . 73
smary O O O O O O O O O O O O O O O O O O 7 8
iv
:1;
.-
.3?
Ar
CHAPTER PAGE
IV. DESIGN OF THE STUDY . . . . . . . . . . . . . 79
Selection of the School Districts . . . . . 79
Selection of Financial and Educational
Factors . . . . . . . . . . . . . . . . . 80
Analysis . . . . . . . . . . . . . . . . . 83
Summary . . . . . . . . . . . . . . . . . . 87
V. ANALYSIS OF SELECTED FINANCIAL FACTORS . . . 88
Analysis of Financial Factor 1 . . . . . . 89
Analysis of Financial Factor 2 . . . . . . 95
Analysis of Financial Factor 3 . . . . . . 100
Analysis of Financial Factor 4 . . . . . . 104
Analysis of Financial Factor 5 . . . . . . 109
Summary . . . . . . . . . . . . . . . . . . 113
VI. ANALYSIS OF SELECTED EDUCATIONAL FACTORS . . 119
Analysis of Educational Factor 1 . . . . . 119
Analysis of Educational Factor 2 . . . . . 124
Analysis of Educational Factor 3 . . . . . 129
Analysis of Educational Factor 4 . . . . . 134
Analysis of Educational Factor 5 . . . . . 139
Summary . . . . . . . . . . . . . . . . . . 144
CHAPTER PAGE
VII. SUMMARY, CONCLUSIONS, AND SUGGESTIONS . . . . 150
Summary . . . . . . . . . . . . . . . . . . 150
Conclusions and Suggestions . . . . . . . 154
BIBLIOGRAPHY . . . . . . . . . . . . . . . . . . . . 156
APPENDICES . . . . . . . . . . . . . . . . . . . . . 161
vi
F I
a.
Eu
III.
V,
VI
1‘7 T
s
O
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)
I1?I‘
a :
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Fe:
Per
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Ma;
TABLE
II.
III.
IV.
VI.
VII.
VIII.
LIST OF TABLES
Per Cent of Support from State and Federal
Funds, 1890 . . . . . . . . . . . . . . . .
Per Cent of Support from State and Federal
Funds, 1956 . . . . . . . . . . . . . . . .
Major Kinds of State Aid Funds for Elementary
and Secondary Schools in Michigan in 1947-
48 and in 1957-58 . . . . . . . . . . . .
Need Distribution of the 535 K—12 School
Districts in Michigan . . . . . . . . . . .
Ability Distribution of the 535 K-12 School
Districts in Michigan . . . . . . . . . . .
Effort Distribution of the 535 K-12 School
Districts in Michigan . . . . . . . . . . .
Classification of the 535 K—12 School
Districts in Michigan in Terms of Need,
Ability, and Effort . . . . . . . . . . . .
The 22 Selected Groups of K-12 School
Districts Classified in Terms of Need,
Ability, and Effort . . . . . . . . . . . .
vii
PAGE
29
30
53
66
7O
74
77
81
TABLE
IX.
XI.
XII.
XIII.
XIV.
XVII.
The 22 Selected Groups of School Districts
Arrayed in Order of the Group Averages
of Need, Ability, and Effort. . . . .
Summary: Analysis of Variance of Financial
Factor 1. . . . . . . . . . . . . . .
Comparison of Annual Current Expenditures
Per Pupil (in tables of "t"). . . . .
Summary: Analysis of Variance of Financial
Factor 2. . . . . . . . . . . . . . .
Comparison of the Average Salaries of
Teachers (in tables of "t") . . . . .
Summary: Analysis of Variance of Financial
Factor 3 O O O O O O O O O O O O O O 0
Comparison of the Proportion of the Capital
Outlay Budget in Relation to the Total
Expenditures (in tables of "t") . . .
Summary: Analysis of Variance of Financial
Factor 4. . . . . . . . . . . . . . .
Comparison of the Proportion of the Total
State Revenue Receipts in Relation to
the Total Receipts (in tables of "t")
viii
PAGE
90
91
92
96
97
101
102
105
107
TABLE
XVIII.
XIX.
XXII.
XXIII.
XXIV.
PAGE
Summary: Analysis of Variance of Financial
Factor 5. . . . . . . . . . . . . . . . . . 110
Comparison of the Proportion of the Total
General Fund Property Taxes in Relation
to the Total Receipts (in tables of "t"). . 111
The Groups Having the Largest Difference in
Each of the Five Financial Factors. . . . . 116
Tests of the Significance of Rank Corre-
lation Coefficient on Each of the
Selected Financial Factors and Each
of the Three Variables of Need, Ability,
and Effort. . . . . . . . . . . . . . . . . 117
Summary: Analysis of Variance of Educational
Factor 1. . . . . . . . . . . . . . . . . . 121
Comparison of the Proportion of the Teachers
Holding M. A. Degrees or Above to the Total
Teaching Staff (in tables "t"). . . . . . . 122
Summary: Analysis of Variance of Educational
Factor 2. . . . . . . . . . . . . . . . . . 125
Comparison of the Proportion of Teachers
Holding Certificates to the Total Number
of Teaching Staff (in tables of "t"). . . . 127
ix
{HES
TABLE PAGE
XXVI. Summary: Analysis of Variance of Educational
Factor 3. . . . . . . . . . . . . . . . . . 130
XXVII. Comparison of the Proportion of the Secondary
Teachers Teaching in Subjects Outside of
Certified Major and Minors to the Total
Number of Secondary Teaching Staff
(in tables of "t"). . . . . . . . . . . . . 132
XXVIII; Summary: Analysis of Variance of Educational
Factor 4. . . . . . . . . . . . . . . . . . 135
XXIX; Comparison of the Proportion of Teachers
Receiving Over $7,000 Annual Salary to
the Total Number of Teaching Staff
(in tables of "t"). . . . . . . . . . . . . 136
XXX. Summary: Analysis of Variance of Educational
Factor 5. . . . . . . . . . . . . . . . . . 140
XXXI. Comparison of the Pupil-Teacher Ratio
(in tables of "t"). . . . . . . . . . . . . 141
XXXII- The Groups Having the Largest Difference
in Each of the Five Educational Factors . . 146
XXXIII; Tests of the Significance of Rank Correlation
' Coefficient on Each of the Selected Educa—
tional Factors and Each of the Three Varia-
bles of Need, Ability, and Effort . . . . . 148
LIST OF FIGURES
FIGURE PAGE
1. A Theoretical Frame of Reference for
Classifying the School Districts in
Terms of Need, Ability, and Effort . . . . 65
2. Need (Membership) Distribution (535 K-12
School Districts in Michigan . . . . . . . 67
3. Ability (SEV per Pupil) Distribution (535
K-12 School Districts in Michigan . . . . 71
4. Effort (Tax Rate) Distribution (535 K-12
School Districts in Michigan) . . . . . . 75
xi
I. APPENDIX A
Table
A-I
A-II
A-III
A-IV
IT—VI
LIST OF APPENDICES
Page
RELATED DATA . . . . . . . . . . . . 161
Group Averages of the Membership
of the 22 Types of School
Districts. . . . . . . . . . . . . 162
Group Averages of the State
Receipts of the 22 Types
of School Districts. . . . . . . . 163
Group Averages of the Total General
Fund Property Tax Receipts of the
22 Types of School Districts . . . 164
Group Averages of the Total
Receipts of the 22 Types
of School Districts. . . . . . . . 165
Group Averages of the Total Current
(Operating) Expenditures of the
22 Types of School Districts . . . 166
Group Averages of Total Capital
Outlay Expenditures of the 22
Types of School Districts. . . . . 167
xii
Table Page
A—VII Group Averages of the Total Expen-
ditures of the 22 Types of
School Districts . . . . . . . . . 168
A-VIII Group Averages of Total Amount of
Salaries of Teachers of the 22
Types of School Districts. . . . . 169
A-IX Group Averages of the Number of
Teachers of the 22 Types of
School Districts . . . . . . . . . 170
A-X Group Averages of the Number of
Teachers Holding M. A. or
Above Degrees of the 22 Types
of School Districts. . . . . . . . 171
A-XI Group Averages of the Number of
Teachers Holding Certification
of the 22 Types of School
Districts. . . . . . . . . . . . . 172
4A-XII Group Averages of the Total Number
of Secondary Teachers Teaching
in Subjects Outside of Certified
Areas of the 22 Types of School
Districts. . . . . . . . . . . . . 173
xiii
Table Page
A-XIII Group Averages of the Number of
Teachers Receiving Over $7,000
Annual Salary in the 22 Groups . . . . . 174
II. APPENDIX B THE SPECIAL QUESTIONNAIRES . . . . . . 175
Part I General Information . . . . . . . . . 176
Part II Elementary School Information . . . . 182
Part III Secondary School Information . . . . . 184
xiv
CHAPTE R I
I NT RODUCTI ON
I. Statement 9f_the Problem
In the United States, there are two concepts that have
been considered to be the bases that formulate the educa-
tional policies and school finance systems among states:
namely, the concept of "local control of education" and the
concept of "equal educational opportunity." With the two
concepts, there have been evolved the diversity of educa-'
tional systems and policies and the variety of financial
practices among states. Thus, the state aid formulas vary
widely among states.‘ '
In Michigan, the state aid funds are distributed in ac—
cordance with the assumptions held concerning the relation—
ships among the variables of financial need, ability, and
effort among school districts.1 In fact, the policies and
practices of (1) the "gross allowance" on the basis of
membership, (2) the "participation millage" on the basis of
local effort, and (3) the "deductible millage" on the basis
of ability, are the main elements that, along with other
1The State of Michigan, Sections 8, 10, 11, 15, and 35 of
the State Aid Act of 1959-60. (Act Number 312 of the Public
Acts of 1957, as amended.)
measures, characterize the present system of financing
Michigan public schools. These policies and practices can
be called the reflections of the concepts of equal edu—
cational opportunity and local control of education. The
results of the Michigan public school finance system are,
therefore, supposedly expected to be in accordance with the
concept of local control of education and the ideals of
equal educational opportunity.
However, the actual results have been the object of
much concern to the people of Michigan. It has often been
pointed out that the Michigan public school financial system
is still far from being adequate, and a number of new pro-
posals have been suggested each year by different groups
with different interests and purposes. In this connection,
one of the continual endeavors of paramount importance
should be the critical examination and true understanding of
the financial and educational differences existing among
school districts.
With these considerations in mind, the present study
purports to examine quantitatively selected aspects of
the State public school financial system in Michigan. More
specifically, the study seeks:
1. To identify and to classify all twelfth grade
school districts in Michigan, in terms of
financial need, ability, and effort.2
2. To analyze quantitatively the differences in
each of the selected financial and educational
factors among selected types of K—12 school
districts classified in terms of financial
need, ability, and effort.
3. To identify the general relationships, in terms
of Low, Medium, and High concepts,3 between each
of the three variables of financial need, ability,
and effort and the differences in each of the
selected financial and educational factors among
different types of school districts.
4. Insofar as the evidence warrants, to suggest a
set of frames of reference for further investi-
gations that would be useful in improving the
present financial planning in Michigan, in the
light of the results of the analyses.
See: The Definitions of Terms used.
As to the criteria of Low, Medium, and High, see: Chap-
ter III, Classification of the School Districts.
II. Definition g£_Terms Used
Public schools. Public schools, as used in this study,
refer to the Michigan public elementary and secondary
schools in school districts which maintain grades of kinder-
garten through twelfth. Those schools which are fully sub-
sidized from federal or state funds, and whose programs are
under federal or state supervision, are excluded.
School district. A school district is a quasi-municipal
corporation created by the Michigan state legislature for the
purpose of operating and maintaining public schools having
grades of kindergarten through twelfth, and whose boundaries
are not necessarily related to those of other local units of
government.
Type (2; category) 2f_school district. Type or cate-
gory of school district as used in this study is defined as
4References: (a) Michigan State Aid Act 1959-60 pp, 91;,
(b) Don Orth Tatroe, unpublished Doctoral dissertation, "A
Critical Examination of the State Aid Formula for Support of
Michigan Public Schools," Michigan State University, 1958,
pp. 6-7. (c) Merton James Turck, Jr., unpublished Doctoral
dissertation, "A Study of the Relationships Among the Factors
of Financial Need, Effort, and Ability in 581 High School
Districts in Michigan," Michigan State University, 1960, pp.
6-8. (d) Stanley E. Hecker, Your Michigan School Costs,
Michigan State University, 1960 (34pp.).
the representative characteristics common to a group of
school districts classified in terms of the three criteria--
Low, Medium, and High--in each of the three variables of
financial need, ability, and effort.
Public school finance system. The revenue and dis-
bursement system utilized by the state to support its ele-
mentary and secondary schools.
State aid Q£_SChOOl support. The distribution of the
money collected by the state on a state-wide basis to local
school districts in accordance with a statutory formula.
Financial need. The total resident membership, ex-
pressed in number of pupils of a school district.
Financial ability. The State Equalized Valuation (SEV)
expressed in dollars of a school district divided by the
total resident membership including resident pupils attend-
ing any public schools.
Financial effort. The total tax rate (allocated and
voted), which includes taxes for Operation, Building and
Sites, and Debt Retirement, expressed in mills levied in
a public school district for the purpose of financing the
public schools.
Membegship. Membership as used in this study is de-
fined as the number of pupils--registration plus receipts by
the Superintendent of Public Instruction in the Michigan
child accounting system--enrolled in the public school from
kindergarten to twelfth grade.
Pupil and school children. Pupil is defined as a child
in membership in a public school, and school children are
defined as children in membership in any school.
spate equalized valuation. The final appraisal of the
worth of the real and personal property in the school dis-
trict for tax purposes by the Michigan Tax Commission.
Mill. The value of a tenth of a cent or a thousandth
of a dollar. The term is used as a unit of local property
taxation.
III. Procedures
The following are the main points and the steps of the
procedures of this study.
Data. The basic data of this study are derived from the
Annual Reports for 1959-60 and the answers to the Special
7
Questionnaires,5 sent to the State Department of Public In-
struction from the 535 twelfth grade school districts in
Michigan. These data furnished for this study most of the
necessary information for its statistical analyses.
3
Review pf_the literature. A review of the literature on
educational administration, school finance, and other re-
lated topics was made. The presentation of the review of
the literature in this study is rather brief, but it is in-
tended to present basic points of consideration in inter-
preting the original data and the results of the statistical
analyses made.
District g1assif1gation criteria. On the basis of the
examination of the data of the 535 twelfth grade school
districts, three comparative classification criteria——Low,
Medium, and High—-in each of the three variables of financial
need, ability, and effort are established.
Classifgcation pf the school districts. The 535 school
districts are classified, applying the 27 classification
categories created by the combinations of the three criteria
in each of the variables of financial need, ability, and
effort.
5See Appendix B.
8
Selection pf the schoo1_districts. Since it is not the
major purpose of this study to show the characteristics
of one or two school districts particularly, the five types
(categories) of school districts which have less than five
school districts are excluded from further statistical
analysis in this study, thus eliminating four school dis—
tricts.
In addition, 11 school districts, including the Detroit
school system, are eliminated because of the incomplete
data available at the time of the study and because of the
unique size of the Detroit school districts. J
Therefore, the main analysis of this study in effect
deals with the 22 types of school districts, comprising the
remaining 520 school districts.
Selection p; financial and educational factors. After
several consultations with finance experts and profesSOrs of
educational administration and school finance at Michigan
State University, five financial factors and five educational
factors were selected from the data available.
Analysis. To determine statistically the significance
of the differences of financial and educational factors
between and among different types of school districts in
..___.__._..-—
Midhice
In orde
Low, Her
(Ii-"113
}_l
Michigan, the techniques of analysis of variance are employed.
In order to observe the general relationships, in terms of
Low, Medium, and High concepts, between each of the three
variables and the differences in each of the selected factors,
Spearman's rank correlation method is employed.
Conclusion. On the basis of the results of the fore-
going analyses, a summary and conclusions, and suggestions
for further investigations are made.
IV. Delimitations pf the Study
This study is delimited in the following ways:
1. The major data of this study were derived from
the Annual Reports for 1959-60 and the answers
to the Special Questionnaires furnished by the
535 twelfth grade school districts in Michigan.
2. The main analyses of the study deal with the 22
different types of school districts, comprising
the 520 school districts. Hence, any individual
school district is not the object of this study.
3. This study treats the selected financial and
educational factors. Thus, this study does not
intend to be comprehensive in itself.
10
4. The analyses are basically quantitative rather
than qualitative.
V. Organization pf the Study
This study is organized into seven chapters. Follow-
ing this introductory chapter, in Chapter II, the review of
the literature is presented. The chapter presents some
basic discussions on the topics of "local control of edu-
cation" and "equal educational opportunity," "school finance
and the quantity and quality of education," and the "Michigan
State Aid Formula." They are brief, but it is intended to
indicate some of the major issues in American education and
school finance today. The classification of the school
districts is presented in Chapter III. Chapter IV presents
the design of the study. The differences of financial
factors among different types of school districts in Michigan
are analyzed in Chapter V, and the differences of educational
factors in Chapter VI. Chapters V and VI consist of the
major analyses of this study. Chapter VII attempts to pre-
Sent an overall summary and conclusions of the study.
VI. Summary
The presentation, as a whole, reflects an attempt on
like part of the writer to submit the facts that might be
._._»
conduci'
finance
planting]
establis
first re
Standing
Si‘idieS
to be Du:
to Share
ll
' conducive to the future improvement of the public school
finance system in Michigan. It is believed that any proper
planning of financing public school education, to achieve
established goals and the ideals of educational opportunity,
first requires objective examinations and unbiased under-
standings of the related facts. There have been a number of
studies in this direction. Nevertheless, the search is yet
to be pursued. In this connection, the present study attempts
to share the contribution in meeting this demand.
‘ t
“F q 5
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12
CHAPTER II
REVIEW OF THE LITERATURE
An effort was made to review the literature concerning
the issues of: (1) local control of education and equal
educational opportunity, (2) school finance and the characé
teristics of education in terms of its quantity and quality,
and (3) Michigan State Aid Formula. Clearly it was not pro-
posed in this effort to cover extensively all the issues of
educational administration and school finance. Rather, it
was specifically intended to consider the said issues on the
grounds that:
l. The two concepts of local control of education
and equal educational opportunity are the funda-
mentals which set the tone and the course of all
aspects of education and its system in the United
States.
2. The inquiry into the level of school expenditures
in relation to the quantity and quality of edu-
cation would give a sound general basis for
considering the quantitative differences of fi-
nancial and educational factors among school
districts having different needs, abilities, and
efforts.
13
3. The questions posed in this study are directly
related to the results of the Michigan State Aid
Formula.
Thus, the purpose of this review is to clarify some of
the fundamental issues and principles in American educational
administration and school finance systems, and to establish
a background for analyzing the factual differences of finan-
cial and educational factors among school districts in
Michigan.
I. Loca1.Control p§_Education and
Equal Educat1ona1 Opportunity
General yigy, Since the Federal Constitution of the
United States includes no reference to education, the idea
that education lies within the province of state function de-
rives from the Tenth Amendment of the Constitution. This
amendment was an attempt to restrict the power of the nation-
al government.1 Thus, as it is usually stated, education is
a state function, not a federal function. But a state's
1"The powers not delegated to the United States by the
Constitution, nor prohibited by it to the States, are re—
served to the States respectively, or to the people."
ifhis amendment is important in that it distinguishes be—
tween.the delegated powers of the national government and
‘the reserved powers of the state government. See: Alfred
De Grazia, The American Way pf Government (New York: John
‘Wiley'and.Sons, Inc., 1957), p. 76.
14
constitution commonly charges its legislature with the duty
of setting up an adequate system of public education. The
conclusion from this is that public education is a function
. . . . 2 . .
of state legislative respon51b111ty. Public school f1-
nance systems are operated within this frame of reference.
While, in legal terms, each state (state legislature)
has always possessed the supreme authority concerning edu-
cation, none has developed a wholly state-administered
school system.3 For instance:
It is uniformly held that there is no inherent
power in school districts to levy taxes. That is to
say, school taxes are state and not local in nature.
This result follows logically from the concept that
education is a state and not a local function. How-
ever, as a matter of general practice in the United
States, the power to levy taxes is delegated to the
districts u2der legislative and constitutional re-
strictions.
2Robert R. Hamilton and Paul R. Mort, The Law and Pub-
lic Education (second edition; Brooklyn: The Foundation
Press, Inc., 1959), p. 16.
3For purposes of determining their general powers and
obligations, school districts are unquestionably quasi-
corporations, but for purposes of constitutional or stat-
utory interpretation, they are not infrequently held to
be municipal corporations which enables the localities to
regulate and administer their own local concerns. As for
this point, see: Newton Edwards, The Courts and the Pub-
lic Schools, The Legal Basis p§_School Organization and
Administration, Revised edition (Chicago: The University
of Chicago Press, 1955), pp. 54-5.
4 . -
Hamilton and Mort, pp, Clt., pp. 166-7.
15
Thus, decentralization in American education and school
finance systems exists between the federal and the state
governments, and between the state and school districts.
It must be noted here, however, that the centralist's argu-
ments are not defunct; and, one of the ever-present issues
in American educational administration and school finance
has been the matter of centralization versus decentraliza-
tion. This issue of centralization versus decentralization
in educational administration is closely related to the is-
sue of attaining the ideals of equal educational opportunity.
The importance of these two issues lies in the fact that the
two ideals, "local control of education" and "equal educa-
tional opportunity," are often conflicting. As Burke point-
ed out, a state, in attempting to promote both equality of
educational opportunity and freedom in education through
decentralization must recognize that these two ideals are
conflicting.5 As this writer observes, one of the real
struggles the American people have been experiencing in sup-
porting public school education has been for the values placed
'upon the concept of decentralization in education and school
finance system. It has been said by many that provincialism
¥
5Arvid J. Burke, Financing Public Schools 1p_the United
States, Revised edition (New YOrk: Harper and Brothers,
Publishers, 1957), p. 565.
cation
to rev
tive s;
1::-
unique
1330?. l:
fliCti:
16
or localism inheritedvdththe idea of decentralization is
responsible for many of the existing inequalities in edu—
cation. To make the problem clearer, it seems appropriate
‘to review some of the related issues in general administra-
tive system and school finance.
A_theoretica1 frame pf_reference. The United States is
unique among the nations of the world in the emphasis placed
upon local control of education. While education is a state
function, in every state the financing of the schools is a
joint enterprise of the central state government and the
local school districts. Local initiative and participation
are encouraged. In other countries much more authority is
wielded by central ministries and bureaus. National in—
terests and centralization of authority in other countries
range downward from Russian totalitarian practices. Yet
even in democratic England the national ministry of educa-
tion possesses immense power over the borough and county
school systems, and considerable authority over private
schools. The American concept of school administration does
not seem to carry much weight in other countries. In this
connection, a fresh way of looking at the matter seems to
be a theoretical approach to the administrative system in
the context of technological development and social change.
17
It has been advocated by many political scientists that
as a society becomes more and more industrialized the ad-
ministrative structure tends to be more centralized, with
a tendency toward dispersal in its structure as well as in
its function within each level of administration. This
general tendency was suggested by Riggs' model, for instance.6
Theoretically, defining any administrative system as those
activities of any organization having to do with its allo-
cation of goods and services,7 it can reasonably be concluded
that in an agrarian society administrative systems tend to
be more decentralized and concentrated, and that in an in-
dustrialized society, the administration tends to be more
centralized and dispersed. This theoretical model has been
evidently true in most of the administrative systems in the
6 . . .
Fred W. Riggs, "Agraria and Industr1a--Toward a Typo-
logy of Comparative Administration," in William J. Siffin
(ed.), Toward the Comparative Study pf_Pub1ic Administration
(Bloomington, Indiana: Indiana University Press, 1959),
pp.86-7. By dispersal, here, the writer refers to, for in-
stance, the functional fragmentation or specialization of
government of each level, as seen in innumerable special-
purpose, goal-oriented agencies ofboth the "line" and "aux—
iliary" types. This functional specialization of admini-
stration would naturally have its structural effects.
However, the problems here have to do not with geographic
coordination. Therefore, the term dispersal must not be
confused with the concept of decentralization. By the
same token, the term concentration must not be mixed with
the idea of centralization. See: e.g., ibid., p. 45.
7Ibid., p. 26.
18
United States. In an educational system, however, even after
the development of a highly industrialized civilization, the
change has been very slow. Educational administration in
the United States went through a long period of struggle, and
never took a centralized pattern, even though it has been
securing from the federal government and the state the aid
or services requisite for its survival in a complex indus-
trial economy. In the main, modern American educational
administration can still be characterized as being decentral-
ized and dispersed, following the Riggs‘ model. It seems
almost clear that this situation in American education has
been mainly because of the ideological belief the American
people have been holding, the belief which has been held
throughout the tremendous technological development and
social change. The American belief placed in. the decen-
tralized pattern of the educational system has well stood
the test of time and experience.
In this connection, Ogburn observes:
The various parts of modern culture are not chang-
ing at the same rate, some parts are changing much more
rapidly than others; and since there is a correlation
and interdependence of parts, a rapid change in one
part of our culture requires readjustments through
other changes in the various correlated parts of cul-
ture. . . . The extent of this lag will vary according
to the nature of the cultural material, but may exist
19
for a considerable number of years.
Toynbee also observes that:
The pace of the material elements in culture such as
technology is more rapid than that of non-material
(spiritual) elements.
If Riggs' theoretical model of an administrative system
in the context of technological development and social
change is an acceptable one, and if the observations by
Ogburn and Toynbee are right, it might well be said, theo-
retically at least, that the American administrative system
of education is still in a transitional stage, subject to
change toward centralization.
It seems that although most of the cultural factors
and trends have been evident for a considerable period,
there has been limited educational response to many of them.
This point of view is supported by the findings of research
as to the adaptability of education:
School change is distressingly slow. Although the
rate differs under varying conditions, apparently it
takes some 50 years from the identification of a need
to the development of adequate means for meeting it by
some societies. A second 50 year span is required for
8
W. F. Ogburn, Soci§1_Change (New York: B. W. Huebsch,
Inc., 1922), pp. 200-1.
9A. J. Toynbee, A_Study p§_History (Oxford University
Press, 1954), III, pp. 106-345. Toynbee's main theme is
that technical or material elements are more rapidly adapt-
ed than ideological (spiritual) factors.
20
general diffusion of the new practice. Some societies
apparently never make the specific adaptation.lo
As far as we can reasonably predict at present, it is
unlikely that centralism will be prevalent in American edu-
cation in the near future. If decentralization should con-
tinue indefinitely, however, some of the potent theories
that have been propounded by many in the field of social
sciences will have to be re-examined at least in part. If
any change toward centralization should come, the pace would
undoubtedly be slow.
Imp1igations for educational equality. According to
available data, a trend toward centralization seems to exist
both in federal-states relationships and in state-local
relationships. For example, in the administration of wel-
fare, social security, and highway construction, there seems
to be a strong shift away from control and support by many
small administrative units to control and support by state
10 . . . .
Philo T. Fernswarth, Adaptation Processes 1p_Public
Schgg1 Systems (New York: Columbia University, 1940); and
Walter Cocking, Regional Introduction p§_Educational Practices
1p_Urban Schoo1_Systems pf ppp_gp;ted States (New York:
Columbia University, 1951). Although these studies were
not necessarily concerned with the matter of administrative
systems as such, the results of the studies may well be re—
lated to the very system of educational administration and
school finance.
(Prflii’ -'
claim *
H
growth
21
agencies. The advocate of strong state control of education
holds that his View is in harmony with this trend. While
various interpretations are offered as to the causes of these
trends, expansion and centralization of government appear to
be associated with industrialism and technology. Some people
claim that the trends are merely a rational response to the
growth of interdependence, the increase in the pressures
which fall upon the individual in an industrial as opposed to
an agrarian economy. This vieWpoint claims that fundamental
changes in the economy, such as the relatively rapid increase
of income and other forms of taxable capacity besides tangible
property, and the differences in fiscal capacity of states
and localities under modern conditions, have made it neces-
sary that state and federal tax agencies play a larger role
in raising revenue for essential public services. From
the standpoint of education, the conviction that adequate
educational opportunities should be available to all children,
the mobility of the population, and the great inequalities in
the financial ability to support schools are potent factors
on the side of the centralist. The slow progress character-
istic of extreme localism, as reported by Mort and Cornell,11
11
Paul H. Mort and F. G. Cornell, American Schools La
Transition (New York: Bureau of Publications, Teachers
College, Columbia University, 1941), pp. 405 ff.
22
support this argument. Commenting on the possible culmination
of the centralized trend Morrison argues:
The logic of the enlarging political and fiscal unit
evidently tends toward the State itself becoming the
unit, comprehensive of all schools in respect to both
control and financial support. At that point the local
instrumentalities of the State disappear, and the govern-
ment of the state assumes the burden of maintaining and
governing and administering its school system, in an
executive as well as in a legis1ative and judicial sense.
One of the strongest arguments comes from Kochnower:
In the past ten years or so our country has attempted
with increased vigor and'dedication to improve the edu-
cational opportunities offered to youth. Yet the lag
between the goal and the actuality remains considerable.
I submit that our efforts have been largely fruitless
because of a fragmentation of authority, a scattering of
resources so that no one cohesive plan of action has
materialized. . . . It is reasonable to assume that the
local district, confused by a myriad of choices, will
cling desperately to the comfort of the familiar. Be-
cause of the difficult and time-consuming problem of
evaluation and the lack of centralization, the develop-
*ment of new proqrams will be slow and costly. . . . Are
most our frustrations the result of the great emphasis
we place on decentralization and on autonomy for the
local school district? . . . If so, then let a central
agency or regional agencies be instituted—-free from
political dominatiOn, to be sure--but let there be
direction. . . . If, as is generally agreed, the future
wellbeing of our nation, its position in the world, and
the peace and progress of this planet are related to the
mobilization of our educational resources, let us not
commit this mobilization to chance.13
2
Henry Clinton Morrison, American Schools, A Critical
Study pf Our School System (Chicago: University of Chicago
Press, 1943), p. 276.
William Kochnower, "The Case for Centralization," in
Phi Delta Kappan, 15:9 (Bloomington, Indiana: Phi Delta
Kappa, June, 1961), pp.393~4.
m E
23
Calling for effective federal support, Johnston states:
State and local funds for education are mortgaged to
the hilt. But still more money is needed. It is here,
on the federal level, where the support of our school
system has been most neglected and from where support
must inevitably come. . . . We can afford the education
we need. . . . Our economy has the capacity. . . . The
choice we must make, therefore, is whether education
will rank high or low in our scale of priorities. The
issue is not one of ability. The nation has this ability.
The issue is one of educational vision and of willingness
to match this vision with appropriate fiscal action.
Furthermore, such action would be an investment paying
handsome returns in individual satisfactions and national
wellbeing.l4
Johnston did not necessarily imply federal control;
however, there are those who advocate in principle an in-
crease in the amount of federal participation in and control
of education in the states. They contend that the same
social and fiscal factors which have broughtatcentralization
trend in other spheres apply to education and should result
in similar responses. In general, education is subject to
many of the influences leading toward centralization which
have affected other spheres of the culture; and it seems
that centralism claims to be more closely siding with the
idea of equal educational opportunity.
14 . .
Eric Johnston, former PreSident of the U. S. Chamber
of Commerce, "Financing Tomorrow's Schools," American Ag:
sociation p£_School Administrators (Washington, D.C.: The
Association, 1960), pp. 9 and 19.
24
The majority of citizens, however, including educators,
are generally agreed that local control and administration
of education are desirable. The sentiments have been ex-
pressed by the Educational Policies Commission as follows:
Centralization in the control, administration, and
financing of education is very apt to lead to a mediocre
school system and a lack of progressive development of
the program of public education. With well—developed
local units for the administration of schools, it is
certain that some communities will develop leadership
which will be effective in improving education. . . .
Most of the great reforms in education have originated
in the schools of some local community; they were not
decreed by central authority.15
The advocate of local control fears that regimentation
and bureaucracy will result from centralization, that edu-
cation will lose its dynamic character and become stagnant.
Major emphasis is almost universally placed upon the im-
portance of retaining and fostering local initiative, in-
terest, and support. The localist would not, as a rule,
deny state or federal financial aid or research and advisory
services, but he would want this assistance extended with no
strings attached. A typical expression of this stand would
be:
Hallmark of freedom is diversity. Federal concern
about education must be one which recognizes local
5 . . . . .
Educational PoliCies CommiSSion, The Structure and
Administration p§_Education ;p_5merican Democracy (Washing-
ton, D.C.: National Education Association, 1938), p. 79.
25
control. We do not want our educational standards
established either in Washinton or, for that matter,
in the state capitol, and made absolutely uniform for
all of the people and all of the students in all of
the schools."16
Defending the decentralist's position, Burke even strong-
ly advocates that differences in educational opportunity
resulting from decentralization are unavoidable and should
not be eliminated. He propounds that the objective of
central finance is not the removing of inequalities in edu-
cational opportunities. In a summary of his book, he states:
Inequalities cannot be removed even in a state-
operated school system. Inequalities caused by the
able, vigorous, and willing communities raising their
standards and improving their programs constitute the
most powerful force for improving educational oppor-
tunities in all school systems. Centrally directed
improvements are slow-moving at best and hardly lead
to a balanced improvement of the whole school pro-
gram. . . . Within limits, central finance can be used
to aid in the enforcement of state minimum standards,
but this is a dangerous policy to pursue in a de-
centralized structure. . . . The test of state
equalization policy is the adequacy of programs avail-
able at the lowest end of the scale of ability levels
in the state. . . . However, in lifting education at
the bottom of the scale, a state must be certain that
it is doing everything possible to enable other
localities to move as far as possible toward providing
the kind of education required in our type of civili-
zation.l7
16Richard M. Nixon's reply to the question of the fed-
eral government's role in support of education, Phi Delta
Kappan, XLI:8 (Bloomington, Indiana, Phi Delta Kappa, May,
1960), p. 349.
l7Arvid J. Burke, pp, cit., pp. 586-9.
IT!
26
Burke's stand described briefly above appears to be
commendable, when we consider the ideological values and the
traditions that have been prevalent in American education.
However, there seems to be a serious dilemma in his argu-
ments. That is, one may well ask if his state will really
be able to enhance the real adequacy of educational programs
available for the poorer districts, while it is doing every-
thing possible to enable the wealthier districts to move as
far as possible? What are the sound standards of the ade-
quacy of educational proqrams for the poorer districts as
compared with those of the wealthier districts? It is not
an easy task for a state to maintain the adequacy of educa-
tional services in the poor districts without raising money
through levying of taxes on the more wealthy parts of the
state for expenditures in poorer sections. Yet, wealthy dis-
tricts themselves may not be fully satisfied with their own
school programs. Thus, the very ideals of local control of
education might hamper the sound total advancement of educa-
tional standards in a state. It may be the case that while
the arguments from the standpoint of social justice and the
various interpretations of the very concept of democracy would
never end, the factual unfavorable inequalities in education
among school districts having differences in ability continue
to exist, so long as the people cling to the idea of local
me
_ "no
‘7
F\‘
t“c\. In
:3 . .
“but
27
control of education in its original form. Nobody would deny
Burke's arguments that inequalities cannot be removed even
in a state-operated school system. But too much gap between
the wealthy districts and the poor districts, or too many
unfavorable inequalities among school districts within a state,
would be untolerable even for many decentralists.
Available research data reported so far reveal that there
are extensive areas where the children never can have ade-
quate school facilities, and that it may be too long a time
before poor districts attain the benefits of the ideals of
equal educational opportunity. It has generally been agreed
that in order to provide anything like equal educational op-
portunities, the poorer districts must bear a burden many times
greater than that of the richer districts.
One of the outcomes of this situation has been the sincere
efforts to reduce the number of small school districts, on
the assumption that financial abilities are closely related
to sizes of school districts. But it may often happen that
districts lying next to each other having about the same number
of pupils differ greatly in assessable property.
The implications of the foregoing discussions and of the
situation for educational equality can be summarized as follows:
1. Any change in education and school finance systems
is subject to social change, based on both the
me
It
28
technological advancement and the ideological
values held by the people.
2. Although decentralism has been prevalent so far,
a trend toward centralization seems to exist
today in American education and school finance.
The states that introduced tax-supported education
in the eighteenth century depended largely on
local support; those that introduced tax—
supported education during the first half of the
nineteenth century gave somewhat more impetus to
support through state aid; those that initiated
their public school systems in the latter half
of the nineteenth century went still farther in
state support, as shown in Tables I and II.18
3. Judging from the present situation, for a long
period to come the functional approach appears
to be the most productive method of effecting a
compromise between the two schools of thought--
centralism and decentralism. For some aspects
18
Paul R. Mort, Walter C. Reusser, and John W. Polley,
Public School Finance, Its Background, Structure and Opera-
tion, Third edition (New York: McGraw—Hill Book Company,
Inc., 1960). PP. 196-219. Note, in Tables I and II, the
posture of the several states like Alabama, Georgia, Cali-
fornia, North Carolina, South Carolina, Tenessee, and Texas
in regard to state support that had already been established
by 1890.
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54
improve the effectiveness of the state funds in raising the
lower expenditure levels. The trend toward general purpose
and equalizing support of education in Michigan has been in
accordance with that of the nation,42 and has been interpreted
as the policy to reduce the unfavorable financial and educa—
tional differences among school districts.
Ppgticipation millage. A minimum uniform effort must be
made on the part of the individual school district to obtain
its state share. In this regard, the State Aid Act provides
as follows:
No school district, except those coming under
the provisions of Section 20 of this Act shall be
allotted or paid any sum under the provisions of this
act in any year unless it has voted to raise and there
has been levied in the fiscal year in which allotment
is made, at least a 6 mill tax on the state equalized
valuation of the property within the district, for the
purposes included in the operation cost of the dis-
trict as defined in Section 14 of this Act, and has
certified such fact to the superintendent of public
instruction. If the district does not levy at least
an 8 mill tax for the above purposes, the amount
allotted or paid shall be reduced to an amount which
bears the same proportion to the total amount allotted
or paid as the actual levy bears to 8 mills.43
This system is commonly referred to as a participation
millage. Millage that local districts must levy in order
42 . . . .
The U. S. Office of Education, State Fund Distribu-
tions pp_Local School Systems, pp, cit., pp. 2, 9, and 10.
4 . . . .
. 3The State of Michigan, Section 35 of the State Aid
Act, 1959-60.
55
to participate in state support has been raised one mill.
Previously only seven mills levied was required for full
state aid and it prorated, if less, to a minimum of five
mills. Summarily described, in order to obtain its state
share, the individual district must have an operation tax,
including the 3—1/4 mills, of at least 6 mills. To obtain
all of the calculated state funds, the operation tax must
be at least 8 mills. Although it is a matter of discussion
if these provisions do carry much impact upon the sound deve-
lopment toward educational equality, the main point of this
provision is in its emphasis upon local initiative and the
increment of effort required of local districts to attain
partnership status with the state in the support of a mini-
mum foundation program, irrespective of the membership size
or the local financial ability.
There are other provisions similar to those of parti-
Cipation millage described above, requiring local effort to
Obtain state financial assistance, such as the "distressed—
school-district-aid" provisions and the constitutional
arrangement for the "school bond loan program."
The state may extend additional (above the partner-
Ship $205) aid if a district is comparatively poor (below
$9,000 SEV) and levies a total school district tax in ex-
Cess of 20 mills. The State Aid Act provides:
56
A school district experiencing financial hardship
and eligible to receive additional aid under the pro-
visions of section 6 of this act shall meet all the
following conditions: (a) The total tax rate levied
in the district for operating and debt retirement pur-
poses for the fiscal year in which such additional aid
is allowed shall be at least 20 mills on the state
equalized valuation of the district. . . .44
Thus, a district meeting the conditions prescribed in
the Act may apply for the additional aid. The amount of aid
ranges from $5 to $2 per resident pupil membership. This is
called the "hardship-aid" or the "distressed-school—district-
aid."
Since the state gives financial aid for operation,
maintenance, salaries, etc., but not for the cost of build-
ings and sites, the costs of constructing and equipping
buildings and providing sites are borne entirely by property
taxation at the local level. In the cases that the burden
on the part of the school district is unbearable because of
the lack of taxable—property resources, the state may borrow
money needed for the local school district. The constitutional
Provision in this regard is as follows:
The state may borrow from time to time such amounts
as may be required but not to exceed an aggregate of
$1000,000,000.00, pledge its faith and credit and issue
its notes or bonds therefor, for the purpose of making
loans to school districts for the payment of principal
and interest on school bonds heretofore or hereafter
44The State of Michigan, Section 15, State Aid Act, 1959-
57
issued for acquiring, constructing, enlarging, im-
proving and equipping school buildings and sites and
for the funding or refunding of obligations incurred
for l or more of the aforesaid purposes. . . .After
a school district shall have received such a loan or
loans from the state, it shall thereafter levy each
year not less than the said 13 mills until the amount
loaned has been repaid and any tax collections in any
year over and above the minimum requirements for
principal and interest shall be used towards the re-
payment of such loan or loans. . . .45
This constitutional provision specifies that if a
school district levies a local property tax of 13 mills to
buy sites and construct buildings, and if this 13 mills is
not sufficient, the state will extend state funds to be re-
paid in order that the district may obtain the necessary
facilities.
IV. Summary
Hitherto, the literature concerning the issues of local
control of education and equal educational opportunity,
the relationships between school finance and the quantity
and quality of educational services, and the Michigan State
Aid Formula has been reviewed. The purpose of the review
was to clarify some of the fundamental issues and principles
in American educational administration and school finance
systems, and to establish a frame of reference in
45 . . . .
The State of Michigan, Section 27, Article X of the
Michigan Constitution.
58
comprehending the factual differences of financial and edu-
cational factors among different types of school districts
in Michigan.
It has been understood that the two concepts of local
control of education and equal educational opportunity are
the fundamentals which set the tone and the characteristics
of education and public school finance systems in the United
States. Since the two concepts are often conflicting, con-
current implementation of the two ideals is not an easy task
in many cases. Thus, the issue of centralization versus de-
centralization comes into the picture. In this regard, the
functional approach appears to be the most productive method
of effecting a compromise between the two extremes of cen-
tralism and decentralism. It would be the best hope for
both modifying the traditional decentralists' view of school
district independence and forestalling those unwholesome and
undemocratic results which, as many people fear, a strong
state centralization might produce.
It has also been understood that money by itself will
not create excellence in school finance systems or in edu-
cational services. Yet, sufficient money and effective
finance systems are expected to enhance the better chances
of obtaining, maintaining, and increasing the quantity and
quality of education. Generally stated, the differences in
59
financial ability to support public school education tend to
increase the potentiality of unfavorable differences in the
quantity and quality of educational services among school
districts.
In the final analysis, the purpose of school finance in
a democratic society is to maintain and enhance the equality
of educational opportunities. An ultimate test of financial
systems, policies, and practices in a democratic society,
then, is the soundness of educational conditions in each
school district, regardless of its geographical location, its
community size, or its financial ability. The answers to
the questions of "what are the sound educational conditions?"
are conditioned by the social demands and are determined
according to the value concepts held by the people.
In Michigan, the philosophy has been accepted that the
state must pay a major share of the cost of educating its
children. This goes without question. A look at the State
Aid plans in effect shows that Michigan has taken steps that
are intended to assure reasonably adequate educational
opportunities for all children in properly organized school
districts. However, this indication does not necessarily
mean that the present Michigan State Aid Formula is, in
itself, entirely adequate or sufficient to provide satis-
factory educational opportunities for all children of the
60
state. There have been substantial evidences that Michigan
has not found yet the best plan for financing its public
school system. In fact, the inequality of taxability in
the different sections is becoming increasingly notice-
able as has been reported by a few studies; and the problems
arising from the disparity of ability distribution as re-
lated to the quantity and quality of educational services
among school districts have not yet been settled. The obser-
vation is warranted that while it would be rather absurd to
assert that the quality of the best programs should be reduced
to produce a negligible improvement in the others, it would
also be difficult to justify the wide unfavorable differences
existing between the educational programs of the poorest and
the privileged districts.
One of the basic keys for attaining the ideals of equal
educational opportunity lies probably in the reformation of
the taxation system so as to obtain an actual increase of
school revenue, along with effective measures of school dis-
trict reorganization. The state should be making continuous
examinations of what is happening in local operations, and
the level of support should be adjusted to keep pace with the
improvement and progress possible at any time. Unbiased ex-
aminatioms of the situation and true understandings of the
61
factual differences existing among school districts should
precede other efforts in this direction.
62
CHAPTER III
CLASSIFICATION OF THE SCHOOL DISTRICTS
I. Introduction
One of the most clearcut bases of classifying the
public school districts in Michigan is either by the popu-
lation of inhabitants, according to the Federal census, or
by the number of children between the ages of 5 and 20, as
certified by the superintendent of public instruction.
The former basis is applied in organizing the second class
school districts, and the latter basis is applied in organ-
izing the fourth, the third, and the first class school dis-
tricts. While the classification of school districts in
terms of either the population of inhabitants or the num-
ber of pupils would have many advantages for general govern-
mental administration, this system of district classifica-
tion does not seem to carry by itself much meaning in con—
sidering the effects of the state school aid programs.
Hewever, besides the vantage points in administrative
convenience, one of the general assumptions behind the
1The State of Michigan, The General School Laws, 1960
(340.21, 340.52, 340.102, 340.142, and 340.182, The numbers
refer to the 1948 Michigan Complied Laws.) (Lansing, Michi-
gan: Speaker-Hines and Thomas, Inc., 1960).
63
practice of classifying the school districts on the basis
of the population of inhabitants or of the number of school
age children seems to have been that financila need (member-
ship) does have direct relationships with financial ability
and effort. In this connection, one recent study, conducted
by Turck, concluded that there is undoubtedly a relationship
between the size of the membership and the taxable wealth,
and that there is a tendency for a school district, as it
increases in the size of membership, to expend more effort
(tax rate) for the support of its program, even though there
appears to be no consistent relationship between the ability
of a high school district and its effort.2
In the light of the assumptions held in Michigan's
school aid policies and judging from the results of the
said study, it can reasonably be contended that even though
each of the three variables may be an individually inade-
quate basis, when they are taken altogether as a criterion,
they can provide a sound basis of classifying and grouping
the school districts for the purpose of analyzing the ef-
fects of the financial system in Michigan.
With these considerations in mind, and on the basis of
the examination of the data, three comparative classifica-
tion criteria--L (Low), M (Medium), and H (High)--in each
1
Merton James Turck, Jr., pp, cit., pp. 112-3.
fr:
kc)
64
of the three variables of financial need, ability and ef-
fort are established in order to classify the school districts.
Thus, in theory, there can be 27 classification cate-
gories created by the combinations of the criteria in each
of the three variables of financial need, ability, and ef-
fort, as shown in Figure 1.
II. Classification py_Need
An examination of the membership distribution among
the 535 K-12 school districts, including the Detroit School
District, revealed the following facts:
1. Total membership 1,451,703
2. Median 1,128
3. Mean 2,713
4. Standard Deviation 12,663
The examination of the data, as shown in Table IV and
Figure 2, clearly indicated that the membership distribu-
tion was highly uneven. Approximately 74 per cent of the
total districts have less than 2,000 membership. More than
91 per cent of the total districts have less than 5,000
membership. Looking at the situation in another way, a
group of less than 10 per cent of the districts holds nearly
60 per cent of the total membership. In short, there are
many small school districts.
r .1 i
flu: ~=r:.
65
FIGURE 13
A THEORETICAL FRAME OF REFERENCE FOR CLASSIFYING THE
SCHOOL DISTRICTS IN TERMS OF NEED,
ABILITY, AND EFFORT
Classification N. A. E.
number (membership) (SEV per pupil) (millage)
1. L L L
2. M L L
3. H L L
4. L L M
5. M L M
6. H L M
7. L L H
8. M L H
9. H L H
10. L M L
11. M M L
12. H M L
13. L M M
14. M M M
15. H M M
16. L M H
17. M M H
18. H M H
19. L H L
20. M H L
21. H H L
22. L H M
’ 23. M H M
24. H H M
25. L H H
26. M H H
27. H H H
3 .-.
N. represents Need; A., Ability; E., Effort;
L. represents Low; M., Medium; and H., High.
1*“
t iriu.
{5115‘
‘V-
NEED DISTRIBUTION OF THE 535 K-12 SCHOOL
DISTRICTS IN MICHIGAN
TABLE IV
66
Classification Membership Number Of
districts
Low . . . 1-999 239
Medium . 1,000-1,999 156
2,000-2,999 41
3,000-3,999 32
4,000-4,999 19
High . . 5,000-5,999 8
6,000-6,999 6
7,000-7,999 4
8,000-8,999 5
9,000-9,999 3
10,000-10,999 3
11,000-ll,999 4
12,000-12,999 5
l4,000-14,999 l
l7,000-17,999 2
l9,000-l9,999 2
21,000-21,999 1
22,000-22,999 l
24,000-24,999 l
26,000-26,999 1
37,000-37,999 l
283,000-283,999 l
67
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Number of School Districts
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68
With these facts, and considering both the pr0portion
of the number of school districts and the distribution of
membership among school districts, the following classifi-
cations were made.
Low (small). Each school district included in this
category has less than 999 membership. The average member-
ship is 564. In this category, 239 school districts, with
a total membership of 134,832, are included.
Medium. Each school district included in this cate-
gory has 1,000 to 4,999 membership. The average membership
is 2,057. In this category, 248 school districts, with a
total membership of 510,181, are included.
High (large). Each school district included in this
category has more than 5,000 membership. The average mem-
bership is 16,815. In this category, 48 school districts,
with a total membership of 807,140, are included.
These classification boundaries seem to be appropriate
for the purpose of this study, under the present Michigan
condition. In this connection, it is interesting to note
that the low classification criterion is in accordance with
Conant's observation. Defining high schools with a gradu-
ating class of under 100 as "too small," Dr. Conant said
69
about 30 per cent of Michigan's schools fall in this classi-
fication.
III. Classification py_Abi1ity
The examination of the ability distribution among 535
K-12 school districts, including the Detroit School District,
shows the following facts:
1. Median 8,817
2. Mean 10,277
3. Standard deviation 5,764
The examination of the data, as shown in Table V and
~Figure 3, indicates that the disparity of wealth distribu-
tion among school districts is great. To compensate for
this situation the Michigan State Aid Act contains hardship
aid provisions. According to Section 15 of the Act, there
are four categories under which districts may be entitled
to receive additional aid: namely, the districts having a
state equalized valuation of $3,0000r less; the districts
having a state equalized valuation of at least $3,001 but“
less than $5,001; the districts having a state equalized
valuation of at least $5,001 but less than $7,001; the
4 . . . . . . . .
Michigan Education Assoc1ation, Michigan Education
Journal, 36:15 (April, 1959), p. 447.
70
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Number of School Districts
72
districts having a state equalized valuation of at least
$7,001 but less than $9,001 on the basis of its resident
pupil membership. If these categories of school districts
can be considered as one of the bases in considering the
definition of poor school districts, it is noteworthy that
there are 277 K-12 school districts which have less than
$9,000 SEV on the basis of their resident pupil membership.
In this connection, Hecker observes:
The "average” Michigan school district has approxi-
mately $15,000 SEV per pupil. A district would be con-
Sidered relatively "poor" if it had less than $10,000 per
pupil and relatively "wealthy"'if'it had over $25,000 per
pupil.5
If this observation should be applied, there are only
15 K-12 school districts which can be classified as wealthy
districts; and there are 321 K—12 school districts which
can be classified as poor districts.
With these facts, the criteria were established for the
purpose of this study,as follows:
pr, Those school districts that fall beyond one-half
standard deviation below the mean of the dispersion of fi-
nancial ability are included in this category. This cate-
gory in effect includes about the lower one-third of the
ability distribution. Each school district included in
this category has a SEV (state equalized valuation) per
5Stanley E. Hecker, pp, cit., p. 17.
73
pupil of less than $7,394. There are 177 school districts,
and the average SEV per pupil is $5,790.
Medium. Those school districts that fall within the
range of one-half standard deviation below and above the mean
of the dispersion of financial ability are included in this
category. Each school district included in this category has
a SEV per pupil of $7,395 to $13,158. There are 250 school
districts, and the average SEV per pupil is $9,723.
‘gigp, Those school districts that fall beyond one-half
standard deviation above the mean of the dispersion of fi-
nancial ability are included in this category. This category
in effect included about the upper one-third of the ability
distribution. Each school district included in this category
has a SEV per pupil of $13,159 or more. There are 108 school
districts, and the average SEV per pupil is $18,911.
IV. Claspif1cation py_Effort
The examination of the effort distribution among the 535
K-12 school districts, as shown in Table VI, and Figure 4,
indicated the following:
1. Median 16.10 mills
2. Mean 16.97 mills
3. Standard deviation 4.69 mills
EFFORT DISTRIBUTION OF THE 535 K—12 SCHOOL
DISTRICTS IN MICHIGAN
—~—7
‘1
TABLE VI
74
Classification Millage No. 9f
districts
Low . . . . . 1.00-7.00 0
8.00-8.99 18
9.00—9.99 4
10.00-10.99 12
11.00-11.99 20
12.00-12.99 38
13.00-13.99 56
14.00-14.62 41
Medium . . . 14.63-14.99 l7
15.00-15.99 46
16.00-16.99 48
17.00-17.99 36
18.00-18.99 42
19.00-19.32 11
High . . . . 19.33-19.99 l4
20.00-20.99 22
21.00-21.99 24
22.00-22.99 23
23.00-23.99 10
24.00-24.99 16
25.00-25.99 12
26.00-26.99 6
27.00-27.99 8
28.00-28.99 7
29.00-29.99 l
30.00-30.99 2
34.00-34.99 l
75
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Number of School Districts
With these facts, the criteria are set,as follows:
ppy, Those school districts that fall beyond one-half
standard deviation below the mean of the dispersion of fi-
nancial effort are included in this category. This cate-
gory in effect includes about the lower one-third of the
effort distribution. Each school district included in this
category levies less than a total of 14.62 mills. There
are 189 school districts and the average millage is 12.39
mills.
Medium. Those districts that fall within the range of
one-half standard deviation below and above the mean of the
dispersion of effort are included in this category. Each
school district included in this category levies a total of
14.63 to 19.32 mills. There are 200 school districts in
this category, and the average millage is 16.76 mills.
gpgg, Those school districts that fall beyond one-half
standard deviation above the mean of the dispersion are
included in this category. This category in effect includes
about the upper one-third of the ability distribution. Each7
school district included in this category levies a total of
19.33 or more mills. There are 146 school districts in this
category, and the average millage is 23.17 mills.
77
TABLE VII
CLASSIFICATION OF THE 535 K-12 SCHOOL DISTRICTS IN MICHIGAN,
IN TERMS OF NEED, ABILITY, AND EFFORT
—— ——
-—-—— f
Classification
Number of Need Ability Effort
number . .
N. A. E. districts average average average
1. L L L 35 552 5,591 12.15
2. M L L 11 1,637 6,204 12.25
3. H L L 0 -- - --
4. L L M 39 650 5,733 16.75
5. M L M 27 1,968 6,356 16.78
6. H L M 0 -- -- --
7. L L H 32 514 5,299 23.53
8. M L H 27 2,000 5,827 24.36
9. H L H 6 9,936 6,463 26.98
10. L M L 53 615 9,701 12.32
11. M M L 42 1,850 9,968 12.51
12. H M L 1 8,270 11,863 14.50
13. L M M 33 590 9,424 16.65
14. M M M 59 1,715 9,907 16.66
15. H M M 2 11,988 11,279 16.83
16. L M H 13 496 9,362 22.47
17. M M H 34 2,386 9,378 22.44
18. H M H 13 7,814 9,811 22.71
19. L H L 21 496 17,921 12.16
20. M H L 20 2,275 19,276 12.72
21. H H L 6 13,924 17,139 13.26
22. L H M 12 323 18,392 16.70
23. M H M 19 2,614 22,287 17.02
24. H H M 9 43,654 18,482 17.27
25. L H H 1 461 15,471 22.26
26. M H H 9 3,314 17,173 21.39
21, H H H 11 12,480 17,927 22.25
Total 535
General Mean 2,713 10,277 16.97
78
V. Summary
According to the criteria thus established, the 535
K-12 school districts, including the Detroit school Dis—
trict, were grouped into 27 theoretical categories. It
was found that there were no school districts which be-
longed to the two theoretical categories (classification
numbers 3 and 6). The result is shown in Table VII.
An examination of the data clearly indicated that a
high degree of disparity exists among school districts in
each of the distributions of membership, ability, and ef—
fort. Summarily stated, many of the K-12 school districts
in Michigan are still small and poor. For the total group
of the 535 K-12 school districts, the membership average
is 2,713; the ability (SEV per pupil) average is $10,277;
and the effort average is 16.97 mills.
From these classified groups of school districts, the
22 groups are selected for the purpose of the analyses, as
described in Chapter IV.
79
CHAPTER IV
DESIGN OF THE STUDY
The present study is based on a design that made possi—
ble the comparison of the differences in each of the selected
financial and educational factors among different types of
school districts, and the identification of the general rela-
tionships between the differences and the three variables of
financial need, ability, and effort.
I. Selection 9£_the School Districts
Table VII indicates that the two classification cate—
gories (classification numbers 3 and 6) have no school dis-
tircts. The two categories (classification numbers 12 and
25) have only one school district, respectively, and one
category (classification number 15) has only two school
districts. These five categories (types) of school dis-
tricts are eliminated from the analyses that will be made
hereafter. They lack the representative characteristics as
types of a group of school districts in Michigan.
In addition, 11 school districts, including the Detroit
School District, are excluded because the data from these
school districts were incomplete or unsatisfactory for the
purpose of this study. The Detroit School District was
80
eliminated because of its uniqueness in size, its 283,340
membership being nearly 20 per cent of the total membership
in Michigan's K-12 school districts, and because of the in-
complete data furnished. Thus, the 22 groups (types) of
school districts, comprising the 520 K—12 districts, are
selected.
For the total group of the 520 selected K-12 school dis-
tricts, the membership average is 2,142; the ability (SEV
per pupil) average is $10,229; and the effort average is
16.99 mills. The summarized information, in terms of need,
ability, and effort of the selected 22 groups of school dis—
tricts is shown in Table VIII.
II. Selection g§_Financia1 and Educational Factors
A tentative list of financial and educational factors
was developed and revised by the writer's committee chairman
and the writer himself. Then a questionnaire containing the
list of financial and educational factors was sent to ten
school finance experts and professors of educational admin-
istration and school finance at Michigan State University,
asking them to rank the factors in order of their importance
for the purpose of the analyses of this study. The returns
were reviewed, and five financial factors and five educa-
tional factors were selected.
81
TABLE VIII
THE 22 SELECTED GROUPS OF K-lZ SCHOOL DISTRICTS, CLASSIFIED
IN TERMS OF NEED, ABILITY, AND EFFORT
1’
J
L
t
C1a881fication Number of Need Ability Effort
numbe£f_ districts avera e avera e average
N. A. E. g g (mills)
1. L L L 34 557 5,560 12.27
2. M L L 11 1,637 6,204 12.25
4. L L M 39 650 5,733 16.75
5. M L M 25 2,024 6,366 16.90
7. L L H 32 514 5,299 23.53
8. M L H 27 2,000 5,827 24.36
9. H L H 5 9,974 6,687 26.77
10. L M L 53 615 9,701 12.32
11. M M L 40 1,879 10,034 12.66
13. L M M .33 590 9,424 16.65
14. M M M 58 1,721 9,927 16.70
16. L M H 13 496 9,362 22.47
17. M M H 34 2,386 9,378 22.44
18. H M H 13 7,814 9,811 22.71
19. L H L 21 496 17,922 12.16
20. M H L 20 2,275 19,276 12.72
21. H H L 6 13,924 17,139 13.26
22. L H M 10 333 18,053 16.59
23. M H M 19 2,614 22,287 17.02
24. H H M 8 13,693 18,423 17.34
26. M H H 8 3,134 16,877 21.44
27. H H H 11 12,480 17,927 22.25
Total 520
General Mean 2,142 10,229 16.99
82
Selected Financial Factors
1. The annual total current expenditures per pupil.
2. The average salary of the teaching staff.
3. The percentage of the capital outlay budget in
relation to the total amount of expenditures.
4. The percentage of the total amount of state revenue
receipts in relation to the total receipts.
The total receipts as used in this study include
the following:
a. The total general fund balance of July 1,
1959.
b. The total revenue receipts.
c. The total non-revenue receipts.
The state receipts include the following:
a. Primary fund.
b. School Aid for 1959—60.
c. Delinquent State Aid.
d. Aid to hardship districts.
5. The percentage of the total amount of general fund
property taxes (revenue receipts) in relation to the
total receipts.
83
Selected Educational Factors
1. The percentage of the number of teachers holding
Master's degrees or above to the total number of
the teaching staff.
2. The percentage of the total number of teachers
holding provisional, permanent, or life certifi-
cates to the total number of the teaching staff.
3. The percentage of the number of secondary teachers
teaching in subjects outside of certified majors
and minors to the total number of the secondary
teaching staff.
4. The percentage of the number of full-time teachers
receiving over $7,000 annual salary to the total
.number of the full-time teaching staff.
5. The pupil-teacher ratio.
III. Analysis
The significance of differences among means of selected
factors in the 22 types of school districts is tested by an
analysis of variance technique.
84
General Question
Are there true (significant) differences among the
means of each of the selected financial and educational
factors in the 22 groups of school districts?
. . , 1
Statistical Analysis
1. Statistically, the analysis of each of the finan-
cial and educational factors involves a test of
the null hypothesis--that there are no true differ-
ences among the means of the 22 groups (types) of
school districts.
2. To test whether differences among means are signi-
ficant, the F test is used. A .05 level of signi—
ficance is established for rejecting the null hy-
pothesis.
1References: (a) Henry E. Garrett and R. S. woodworth,
Statistics ip_Psychology and Education (New York: Longmans,
Green and Company, 1958), pp. 276-308 and 372-5; (b) Allen
L. Edwards, Statistical Methods for the Behavioral Sciences
(New YOrk: Rinehart and Company, Inc., 1957), pp. 315-65:
(c) Wilfrid J. Dixon and Frank J. Massey, Jr., Introduction
32 Statistical Analysis (New YOrk: McGraw-Hill Book Company,
Inc., 1957), pp. 139-88; (d) George W. Snedecor and William
G. Cochran, Statistical Methods Fifth edition (Ames, Iowa:
The Iowa State College Press, 1959), pp. 190-2 and 237-90;
and (e) Sidney Siegel, Nonparametric Statistics for the
Behavioral Sciences (New YOrk: McGraw—Hill Book Company,
Inc., 1956), pp. 202-13 and 284.
85
3. When the F test rejects the null hypothesis, the "t"
test is used in order to determine those means which
contributed to the differences.
2The following are the points for special consideration
and the steps taken in testing the differences.
(a) The 22 groups are unequal in their sizes.
(b) In each factor analysis, the number of potential dif-
ferences will be:
22 (22 - l)/2 = 231
(c) A general formula for calculating standard error of
the difference between any two means in analysis of variance
is:
l 1
SE=SD —+—
D w N N
1 2
where SED is the standard error of the differences between
any two means, SDw is the within-groups standard deviation,
and the N and N are the sizes of the groups being compared.
1 2
Since "t" = mean difference/SED
mean differences = "t" x SED
therefore, D.01 - t .01 x SED
where D.01 is the value of significant difference, when the
difference is tested by the "t" at the 01 level.
(d) The means of any two groups are said to be signifi-
cantly different at the .01 level of significance, if they
differ by more than:
|I--I
1- +
1 2
(e) Hence, for each factor analysis, a table of values
of D.01 values for all 231 combinations of two means is es-
tablished. Another table of mean differences is derived for
each factor analysis, and these differences are judged to
be significant if they exceed the corresponding value in
t .
he D.01 table
D.01 = t .01 x SD‘w
Z
Z
86
Differences between pairs of means are held to be
significant at the .01 level, if they exceed an
amount determined by the method given in the foot-
note 2.
4. In order to identify the general relationships, in
terms of Low, Medium, and High concepts, between
each of the three variables of financial need, abil-
ity, and effort and the differences of each of the
selected factors, Spearman's rank correlation method
is employed.3 The rank correlation coefficients are
tested at the .10 and .02 levels of significance
(two—tailed tests).
(a) This is a nonparametric method.
(b) The rank correlation tests will be the tests of
the null hypotheses of no significant relationships between
each of the selected factors and each of the three variables
of financial need, ability, and effort.
(c) Spearman's rank correlation coefficient (r ) is
given by: S
6 EN :12:
r = 1 - i=1
3 N(N2-1)
In our cases, N = 22, the number of groups; where
the di '8 are differences in ranks of each of the 22 groups
among 1the two measurements whose rank correlation is being
calculated.
87
IV. Summary
The 22 groups (types) of school districts, comprising
tflu3520 K-12 school districts, were selected. Five finan-
cial factors and five educational factors were chosen. The
statistical tool identified as appropriate for analyzing
differences among the means of the 22 groups of each of the
10 selected factors was the analysis of variance. Differen-
ces among the means of the 22 groups will be tested by the
F ratio and the "t" test. The Spearman's rank correlation
coefficient technique was identified as an appropriate sta-
tistical method for identifying the general relationships
between the differences of each of the selected factors
among different types of school districts and each of the
three variables of financial need, ability, and effort.
f “i
CHAPTER V
ANALYSIS OF SELECTED FINANCIAL FACTORS
In this chapter, the five selected financial factors
are analyzed. An analysis of variance technique is employed
in order to test the significance of differences among means
of each financial factor. The distribution of differences,
the largest differences, and the total number of differences
that are significant at the .01 level of significance, are
examined. An inspection of the differences among means of
the groups 1, 14, and 27 will be a matter of particular
interest because the three groups have typical characteris-
tics.1 In order to identify the general relationships, in
terms of Low, Medium, and High concepts, between the five
selected financial factors and the three variables of finan-
cial need, ability, and effort, Spearman's rank correla-
tion technique is employed. The tests of significance of
rank difference coefficient will be at the .10 and .02 levels
of significance.
For the purpose of this analysis, first, the types of
districts are ranked from highest to lowest on the bases of
-‘
1Note: Group 1 (L L L) holds the low categories of all
three variables of financial need, ability, and effort;
group 14 (M M M)holds the medium categories; and group 27
(H H H) holds the high categories. See: Table VIII.
89
the group averages of need, ability, and effort, as shown
in Table IX; and the group mean distribution table of each
selected factor is arranged from highest to lowest, so that
each group has a rank for each factor. All results of the
analyses are presented in summarized forms.
1. Analysis 9: Financial Factor 1
Factor. The annual current expenditures per pupil.
Null hypothesis. There are no significant differences
among the 22 group means of financial factor 1.
Analysis g£_variance. A summary of the analysis of
variance is shown in Table X.
Conclusion: The null hypothesis is rejected and,
therefore, it is concluded that the 22 group means
of financial factor 1 do, in fact, differ signifi-
cantly.
Tests g£_gifference§_by_use gf_"§f. A summary of the
results of the "t" tests is presented in Table XI.
A close inspection of the mean differences shows the
following:
TABLE IX*
90
THE TWENTY-TWO GROUPS OF SCHOOL DISTRICTS ARRAYED
IN ORDER OF THE GROUP AVERAGE OF NEED,
ABILITY, AND EFFORT
Need A'bilityfi—_—-__:====::rf:::===q
3,3222. $3,252... 252:; Rank
Highest 21 l 23 1 9 l
24 2 20 2 8 2
27 3 24 3 7 3
9 4 22 4 18 4
18 5 27 5 16 5
26 6 19 6 l7 6
23 7 21 7 27 7
17 8 26 8 26 8
20 9 ll 9 24 9
5 10 14 10 23 10
8 11 18 11 11
ll 12 10 12 4 12
14 13 13 13 14 13
14 17 14 22 14
4 15 16 15 13 15
10 16 9 16 21 16
13 17 5 17 20 17
l 18 2 18 ll 18
7 l9 8 19 10 19
19 20 4 20 l 20
16 21 l 21 2 21
Lowest 22 22 7 22 19 22
*NOte:
This table is derived from Table VIII.
91
TABLE X
SUMMARY: ANALYSIS OF VARIANCE
OF FINANCIAL FACTOR l
Source of Sums of Mean squares
. . df . SD
variation squares (variance) w
Among the 21 817,179 38,913.28
means
Within 498 835,495 1,677.70 40.96
groups
Total 519 1,652,674
" u = 38,913.28 _
P 1,677.70 23.19
df = 21 and df = 498‘
ll
[.1
U1
\0
H
l-‘
\D
I-'
"F" at .01
Ho: rejected
92
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98
11. Distribution of
Mean Differences
Frequency
More than $3,001 14
2,001-3,000 22
1,001-2,000 43
l-l,000 152
Total 231
2. Largest difference exists between group 21 and
group 7 (difference: $3,990).
3. Total number of differences, significant at the
.01 level of significance is 116.
4. Differences among means of groups 1, l4, and 27.
a. Group 27 vs. group 1: significant.
b. Group 27 vs. group 14: significant.
c. Group 14 vs. group 1: significant.
Variables contributing 1:2 the differences.
1.- Need
a. r = 0.8961.
s
b. Significant at the .10 and .02 levels.
c. Positive relationship.
2.
Ability
a. r = 0.5935.
s
99
b. Significant at the .10 and .02 levels.
c. Positive relationship.
Effort
a. r = 0.3636
s
b. Significant at the .10 level, but not at the
.02 level.
c. Positive relationship.
Conclusion
a. There is a very high positive relationship
between financial factor 2 and need.
b. There is a substantial positive relation-
ship between financial factor 2 and ability.
c. There is some relationship between financial
factor 2 and effort.
Therefore, it must be interpreted that the most
contributive variable to the differences in the
average salaries of the teachers is financial
need, the sizes of the school districts. The
relationship is positive.
100
III. Analysis 9f Financial Factor 3
Efiactor. The percentage of the capital outlay budget
in relation to the total expenditures.
b¢ull hypothesis. There are no significant differences
mmarig; the 22 group means of financial factor 3.
Analysis 2;“ variance. Table XIV shows the result of
the analysis of variance.
Conclusion: The null hypothesis is rejected
and it is concluded that the 22 group means of
financial factor 3 are significantly different.
(Pests 25 differences by use 2f it". The results are
surrunarized in Table XV.
1“. Distribution of
Mean Differences
Frequency
More than 3.01% 6
2.01-3.00 27
1.01-2.00 90
.01-1.00 108
Total 231
Largest difference is between group 21 and group
18 (difference: 3.24%).
101
TABLE XIV
SUMMARY: ANALYSIS OF VARIANCE
OF FINANCIAL FACTOR 3
Source of Sums of Mean squares
. . df . SD
variation squares (variance)
Among the
meariss 21 338 16.095
Within
9r0ti£>s 498 2,703 5.427 2.33
Total 519
n u = 16.095 :
F .5T427 2.965
df1 = 21 and df2 = 498
"F" at .05 = 1.59
"F" at .01 = 1.91
Ho: rejected
102
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103
The total number of differences that are signifi-
cant at the .01 level of significance is 29.
Differences among groups 1, l4, and 27.
a. Group 1 vs. group 27: significant.
b. Group 1 vs. group 14: not significant.
c. Group 14 vs. group 27: not significant.
‘Jariables contributing tg_the differences.
1.
Need
a. r = -0.8046.
s
b. Significant at the .10 and .02 levels.
c. The relationship is inverse.
Ability
a. r = 0.0870.
s
b. Not significant at the .10 and .02
levels.
c. Positive relationship.
Effort
a. r = -0.5325.
s
b. Significant at the .10 and .02 levels.
c. Inverse relationship.
104
4. Conclusion
a. There is a very high inverse relationship
between financial factor 3 and need.
b. There is practically no relationship
between financial factor 3 and ability.
c. There is a substantial inverse relation-
ship between financial factor 3 and effort.
5. Therefore, it is interpreted that the most con-
tributive variable to the differences in the
proportion of the capital outlay budget in relation
to the total expenditures is financial need. The
relationship is inverse; that is, the small
school districts seem to spend more money for
capital outlay expenditures out of their total
money available.
IV. Analysis 9£_Financial Factor 4
Factor. The percentage of the total state revenue
receipts in relation to the total receipts.
Null hypothesis. There are no significant differences
among the 22 group means of financial factor 4.
AEELY§1§.2£.variance. As presented in Table XVI, the
null hypothesis is rejected and, therefore, it is concluded
105
TABLE XVI
SUMMARY: ANALYSIS OF VARIANCE
OF FINANCIAL FACTOR 4
Source of df Sums of Mean squares SD
variance squares (variance) w
Among the
means 21 41,120 1,958.095
Within
groups 498 34,077 68.427 8.27
Total 519 75,197
1 958.095
II N = _i =
F 68.427 28.615
: : 4
df1 21 and df2 98
.'F" at .05 = l. 59
0!
('1'
O
H
II
H
KO
H
II F"
H6: rejected
106
that the 22 group means of financial factor 4 do, in fact,
differ significantly.
Tests 9§_differences by_use gf_"t". Summarized re-
sults are shown in Table XVII.
1. Distribution of
Mean Difference
Frequency
More than 30.01% 6
20.01-30.00 53
10.01-20.00 62
.01-10.00 110
Total 231
2. Largest difference exists between group 27 and
group 1 (difference: 33.99%).
3. Total number of differences which are significant
at the .01 level of significance is 151.
4. Differences among the means of groups 1, l4, and
27:
a. Group 1 vs. group 27: significant.
b. Group 1 vs. group 14: significant.
c. Group 14 vs. group 27: significant.
Variables contributing t9_the differences.
1. Need
107
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118
factor and each of the three variables. The results of the
tests of the significance of rank correlation coefficients
on each of the selected financial factors and each of the
three variables of need, ability, and effort are shown in
Table XXI.
(The most contributive variables to the differences of
sac}: of the selected financial factors were:
(a)
(b)
(C)
(d)
(e)
Ability, in financial factor 1: a high positive
relationship.
Need, in financial factor 2: a very high posi-
tive relationship.
Need, in financial factor 3: a very high in-
verse relationship.
Ability, in financial factor 4: a very high
inverse relationship.
Ability, in financial factor 5: a very high
positive relationship.
Thus,, in view of the foregoing results of the analyses,
it seenm: apparent that financial effort does have very
little suffect upon the existing differences of the selected
financial factors among the 22 types of school districts in
Michigani
119
CHAPTER VI
ANALYSIS OF SELECTED EDUCATIONAL FACTORS
This chapter is devoted to the analyses of the five se-
lected educational factors. For an analysis of variance, a
hypothesis for each factor analysis is stated in null form,
and the significance of differences among means of each factor
is tested by the F ratio and the "t" tests according to the
formula and the procedures as described in Chapter IV. The
distribution of differences, the largest differences, the
total number of differences that are significant at the .01
level of significance, and the differences among means of
the groups 1, l4, and 27 are examined. In order to identify
the general relationships between the five selected educa-
tional factors and the three variables of financial need,
ability, and effort, the significance of the rank corre-
lation coefficients is tested at the .10 and .02 levels of
significance. All results of the analyses are presented in
summarized forms.
I. Analysis p§_Educational Factor 1
Factor. The percentage of the teachers holding M. A.
degrees or above to the total number of teaching staff.
._. I.
120
Null hypothesis. There are no significant differences
among the 22 group means of educational factor 1.
Analysis pf variance. A summary of the analysis of
variance is presented in Table XXII.
Conclusion: The null hypothesis is rejected;
therefore, it is concluded that the 22 group means
of educational factor 1 do, in fact, differ signifi-
cantly.
Tests 0 difference§_py_use p£_"t". Table XXIII shows
a summary of the results of the "t" tests.
1. Distribution of
Mean Differences Frequency
More than 20.01%. 27
10.01-20.00 72
l.01-10.00 80
0.01- 1.00 g;
Total 231
2. Largest difference is between group 24 and group
7 (difference: 24.28%).
3. Total number of differences that are significant
at the .01 level of significance is 112.
4. Differences among means of the groups 1, l4, and
27.
TABLE XXII
SUMMARY: ANALYSIS OF VARIANCE
OF EDUCATIONAL FACTOR l
121
Source of Sums of Mean squares
. . df . SD
variation squares (variance) w
Among the
means 21 17,276 822.666
Within
groups 498 26,469 53.151 7.29
Total 519 43,705
4 4 = 822.666 =
F 53.151 15.478
dfl = 21 and df2 = 498
"F" at .05 = 1.59
"F" at .01 = 1.91
H6: rejected
.E.
122
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133
Ability
a. r = -0.4670.
s
b. Significant at the .10 level but not at the
.02 level.
c. Inverse relationship.
Effort
a. r = —0.1248.
s
b. Not significant at the .10 and .02 levels.
c. Inverse relationship.
Conclusion
a. There is a very high inverse relationship
between educational factor 3 and need.
b. There is some inverse relationship between
educational factor 3 and ability.
c. There is practically no relationship
between educational factor 3 and effort.
Therefore, it is interpreted that need is the most
contributive variable to the differences of the
proportion of the secondary teachers teaching in
subjects outside of certified major and minors to
the total number of secondary teaching staff. The
relationship is inverse. This fact implies that
134
the large school districts hold many more teachers
who are qualified for their teaching in high schools,
while small school districts are pretty much limited
to maintain qualified teachers.
IV. Analysis pf_Educational Factor 4
Eactgr, The percentage of the teachers receiving over
$7,000 annual salary to the total number of teaching staff.
Null_hypothesis. There are no significant differences
among the 22 group means of educational factor 4.
Analysis pf_variance. Table XXVIII presents a summary
of the results of the analysis of variance.
Conclusion: The null hypotheSis is rejected and,
therefore, it is concluded that the 22 group means
of educational factor 4 do, in fact, differ signifi-
cantly.
Tests pf differences py use p§_"t". Table XXIX shows
the summarized results of the tests.
135
TABLE XXVIII
SUMMARY: ANALYSIS OF VARIANCE
OF EDUCATIONAL FACTOR 4
=
Source of Sums of Mean squares
. . df . SD
variation squares (variance) w
Among the
means 21 13,352 635.809
Within
groups 498 49,313 99.022 9.95
Total 519 62,665
" N = 635.809 =
F 99.022 6'421
dfl = 21 and df2 = 498
"F" at .05 = 1.59
"F" at .01 = 1.91
Ho: rejected
136
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142
Distribution of
Mean Differences
Frequency
More than 10.01 7
5.01-10.00 23
1.01- 5.00 '1 142
.01- 1.00 59
Total 231
Largest difference is between group 21 and group
26 (difference: 13.92).
Total number of differences which are significant
at the .01 level of significance is 62.
Differences among means of the groups 1, l4, and
27.
a. Group 14 vs. group 27: not significant.
b. Group 14 vs. group 1: not significant.
c. Group 1 vs. group 27: not significant.
There seem to be no consistent relationships
among the three groups in relation to educational
factor 5.
Variables gpntributing pp_the differences
1.
Need
a. r = 0.2693.
s
b. Not significant at the .10 and .02 levels.
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143
c. Positive relationship.
Ability
a. r = -0.4049.
s
b. Significant at the .10 level but not at the
.02 level.
c. Inverse relationship.
Effort
a. r = 0.0017.
s
b. Not significant at the .10 and .02 levels.
Conclusion
a. There is a slight positive (but not signi-
ficant) relationship between educational
factor 5 and need.
b. There is some inverse relationship between
educational factor 5 and ability.
c. There is almost no relationship between
educational factor 5 and effort.
It is interpreted that although there seems to be
no consistent general direction of the relation-
ship, the most contributive variable to the dif-
ferences of the pupil-teacher ratio is ability.
144
The relationship is inverse, that is, the pupil-
teacher ratio in the small school districts is
higher than in the large districts. The other
two variables do not seem to have much effect on
the differences of the pupil-teacher ratio among
the 22 types of school districts in Michigan.
VI. Summary
All null hypotheses of no significant differences among
means of each of the selected five educational factors
were rejected by the F test at the .05 level of significance.
The significance of differences among means of each factor
was further tested by the "t" tests. The contributive vari-
ables to the differences of each of the selected five edu—
cational factors were identified by the Spearman rank corre-
lation coefficient method.
1. The results of the analysis of variance were shown in
Tables XXII, XXIV, XXVI, XXVIII, and XXX in summarized forms.
2. The results of the tests of differences by use of "t"
were shown in Tables XXIII, XXV, XXVII, XXIX, and XXXI.
The total number of differences that were significant at
the .01 level of significance was:
145
(a) 112, in educational factor 1.
(b) l, in educational factor 2.
(c) 14, in educational factor 3.
(d) 97, in educational factor 4.
(e) 62, in educational factor 5.
The least number of significant differences existed in
educational factor 2, the proportion of the teachers holding
certificates to the total number of teaching staff. The
greatest number of significant differences existed in edu-
cational factor 1, the proportion of the teachers holding
M. A. degrees or above to the total number of teaching staff.
Clearly, the total number of significant differences of the
selected educational factors was much less than that of the
selected financial factors.
3. The groups having the largest differences of each
of the five educational factors are shown in Table XXXII
with reference to the group averages of the three variables
of financial need, ability, and effort. Table XXXII does
not seem to show any clear-cut relationships in terms of
Low, Medium, and High concepts, between the selected educa-
tional factors and the three variables. Also, the exami-
nations of the differences among means of the groups 1, l4,
and 27 did not seem to reveal the general direction of the
relationships.
TABLE XXXII
146
THE GROUPS HAVING THE LARGEST DIFFERENCE OF EACH
OF THE FIVE EDUCATIONAL FACTORS
(with references to the group averages of
need, ability, and effort)
Groups having the largest difference Differ-
ence
Educa— Group 24 (H H m) and Group 7 (L L H) 24.28%
;::::: N. 13,693 N. 514
1 A. $18,423 A. $5,299
E. 17.34 mills E. 23.53 mills
Educa- Group 18 (H M H) and Group 5 (M L M) 21.85%
;::::: N. 7,814 N. 2,024
2 A. $9,811 A. $6,366
E. 22.71 mills E. 16.96 mills
Educa- Group 16 (L M H) Group 27 (H H H) 13.83%
tional and
Factor N. 496 N. 12,480
3 A. $9,362 A. $17,927
E. 22.47 mills E. 22.25 mills
Educa- Group 24 (H H M) and Group 10 (L M L) 21.60%
8:22;: N. 13,693 N. 615
4 A. $18,423 A. $9,701
E. 17.34 mills E. 12.32 mills
Educa- Group 21 (H H L) and Group 26 (M H H) 13.92
;::::: N. ‘13,924 N. 3,134
5 A. $17,139 A. $16,877
E. 13.26 mills E. 21.44 mills
Note: (a) The figures under each group are the group aver-
(b) See:
ages of Need (N.), Ability (A.), and
Table VIII.
Effort (E.).
147
The tests of the significance of the Spearman rank cor-
relation coefficient at the .10 and .02 levels of signifi-
cance indicated the general relationships between each of
the selected five educational factors and each of the three
variables of financial need, ability, and effort. The re-
sults of the tests of the significance of rank differences
are shown in Table XXXIII.
The general direction of the relationships were:
(a)
(b)
(c)
(d)
(e)
Positive relationship, in educational factor 1.
Positive relationship, in educational factor 2.
Inverse relationship, in educational factor 3.
Positive relationship, in educational factor 4.
N0 consistent relationship, in educational
factor 5.
The most contributive variables to the differences of
each of the
(a)
(b)
(C)
(d)
selected five educational factors were:
Need, in educational factor 1: a very high
positive relationship.
Both need and ability, in educational factor 2:
some positive relationship.
Need, in educational factor 3: a very high in—
verse relationShip.
Need, in educational factor 4: a very high
positive relationship.
148
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