Fiscal Equalization for State and Local Government Finance

This volume examines the public policy challenges of fiscal disparities, their sources, and how states are addressing them. States have spent considerable effort and money to reduce fiscal disparities among local governments, particularly in the area of education finance. Several options to reduce inequalities, including local option taxes, tax base sharing, and shared tax systems have met with varying degrees of success. Here public finance experts discuss the implementation of creative public policies for dealing with fiscal disparities. Particular attention is paid to school equalization, including the division of fiscal responsibilities between state and local governments, potential funding sources, and what is necessary to achieve school equity.