Texas has had its Robin Hood school financing system in place since 1993, when the legislature adopted the system in response to a state supreme court order to equalize state spending on public schools. Under the arrangement, any district that has taxable property values exceeding $305,000 per student is not allowed to keep all of its property-tax…

This report combines a theoretical study of state school aid programs with an empirical study of school districts' responses to such programs. The author's theoretical investigation of existing systems of general state aid to school districts suggests two propositions: school districts do not maximize an ordinary utility function in the light of…