Ways of measuring the fiscal capacity of school systems are examined in this paper, which presents a representative tax system model. Fiscal capacity is influenced by factors other than tax base size; the "ideal" model should address adjustments for variations in cost across communities and school systems. The first section examines the…

In 1988, 66 of Tennessee's rural school districts brought suit against the state government claiming that the school funding system of a local option sales tax discriminates against rural areas. This study examines the effects of increased reliance on local sales tax revenue on Tennessee's school expenditures. Not every county can support a major…