Card Set Information

2011-10-02 18:21:37
EDA 6240 Education Finance midterm

EDA 6240, UCF, midterm
Show Answers:

  1. How many school districts in Florida?
  2. What does Article 9 of the Florida Constitution state?
    legislature shall create uniform system of free public schools
  3. Where can you find the general welfare clause?
    Article 9 of the Florida Constitution
  4. What is a tax levy - in regards to schools?
    the act of imposing and collecting a tax based on property values
  5. What is a progressive tax?
    A tax that takes a higher proportion of large incomes than of small ones.

    based on doctrine of marginality
  6. What is an example of a progressive tax?
    Income tax
  7. What is a regressive tax?
    tax imposed in such a manner that the tax rate decreases as the amount subject to taxation increases
  8. What are three examples of a regressive tax?
    • sales tax
    • flat tax
    • FICA
  9. Who pays more under a progressive tax? a regressive tax?
    Progressive tax -- rich

    Regressive tax -- poor
  10. Who created the Foundation program approach aka District Equalization approach?
  11. What are the 3 degrees of state participation for financing schools?
    • state operation
    • complete state support
    • foundation program approach or district equaliztion approach
  12. Only one state has full state funding. Which state is it?
  13. What is District Power Equalization?
    each local district mill levy should produce the same number of dollars of total school revenue per mill per student in every district
  14. What are the 4 major funds?
    • General Fund
    • Debt Service Fund
    • Capital Projects Fund
    • Special Revenue Fund
  15. The General Fund is
    • the largest
    • pays for salaries, utilities, phone, gas, operating costs
    • FEFP money goes into general fund
    • 85% of General Fund pays all salaries and benefits
  16. Mortgage payments are paid out of
    the Debt Service Fund
  17. The Capital Projects Fund is for
    • maintain facilities
    • buy school buses & other large equipment
  18. What goes into the Special Revenue Fund?
    • federal money
    • lunch program money
  19. What portion of school district budget goes to school lunches?
  20. What does FEFP stand for?
    Florida Education Finance Program
  21. What are the 4 major elements to the FEFP formula?
    • Full Time Equivalent (FTE)
    • Program Cost Factor (PCF)
    • District Cost Differentials (DCD)
    • Base Student Allocation (BSA)
  22. What is the FEFP formula?
  23. What is the FTE?
    The number of students in a funded program
  24. What are Program Cost Factors (PCF)?
    the weighting factor of program funds
  25. What is the PCF for grades 4 - 8?
  26. What is District Cost Differentials (DCD)?
    • based on cost of living in county
    • assessed valuation of taxable bldgs & land divided by # children
  27. Who determines the Base Student Allocation (BSA)?
    FL Congress determines
  28. What does mill stand for?
    millage -- how measure tax rate on real property (bldgs & land)
  29. What does 1 mill equal?
    1 mill = .001
  30. How much of the lotter proceeds goes to schools?
  31. Where does most state revenue come from?
    sales tax
  32. What is a stable tax?
    • predictable, inelastic
    • (i.e. property tax)
  33. What is an elastic tax?
    changes with economy (i.e. sales tax)
  34. Who is bonded?
    the bookkeeper is bonded
  35. What does title 1 do?
    distribute funding to schools and school districts with a high percentage of students from low-income families
  36. Serrano vs. Priest (1971)
    • California case , California court, California constitution
    • dealt with fiscal equality or fiscal neutrality
    • court ruled education a state function not a federal or local function
  37. What does ADA stand for?
    Average Daily Attendance -- the average number of students in actual attendance (warm bodies)
  38. What does ADM stand for?
    Average Daily Membership -- the average number of students enrolled
  39. What is real property?
    Buildings & land
  40. Does all of the money determined in the FEFP formula go into the General Fund?
    No, FEFP - Required millage (effort)
  41. What is the Required millage?
    Required millage is the millage amount that the state determines each district must impose on real property in the district. If districts don't impose required local millage they get no money from state.
  42. What is a flat grant?
    • 1st form of school aide
    • state or federal government gave a flat amount of money to schools
  43. What are the Program Cost Factor (PCF) rules?
    • 80% of money generated by given program must be spent on that program
    • 90% of money generated by K-3 must be spent on K-3
    • 100% of money generated by ELL must be spent on ELL
  44. The school board budget runs from
    July 1st to June 30th
  45. Name two things that the principal has a budget line for?
    • equipment
    • materials & supplies
  46. What does Ad Valorem mean?
    based on the value of
  47. What is encumbrance accounting?
    • money is encumbered by a purchase order
    • cannot use money for any other reason
  48. What is an excise tax?
    set amount per unit (i.e. tax per gallon of gas)
  49. Which death tax is imposed by the state? by the national government?
    • State -- inheritance tax
    • National -- Estate tax
  50. What do the numbers of an expenditure represent?
    • 1st 3 -- indicate fund money came from
    • 2nd 3 -- indicate object purchased
    • 3rd 4 -- indicate function (what purchased for)
    • last numbers -- indicate school number (cost center)
  51. What are possible object categories?
    • salaries
    • benefits
    • purchased services (i.e. outside plumber)
    • energy services (i.e. electric, gas)
    • materials and supplies (designed to last < 1 year)
    • capital outlay (designed to last > 1 year (i.e. furniture))
    • other expences
    • transfers
  52. What are 4 possible functions of a expenditure?
    • instruction (teachers)
    • instructional support (guidance, media center)
    • general support (admin)
    • community services -- i.e. if have pool used by park services
  53. What goes into Internal Accounts?
    money bring into school through outside sources such as picture money and athletic tickets
  54. What are some rules regarding money collected from outside sources?
    • All money collected at school must be turned in daily to bookeeper
    • must be deposited in bank ASAP or within 5 business days
    • money must be spent for good of students on students who made the money the year year they made the money
  55. Who approves expenditures from internal accounts?
    Principal and club sponsor
  56. Can money be transfered from one internal account to another?
    Only with permission of the club sponsor.
  57. What are some miscellaneous internal accounts?
    • interest
    • general fund (small g) -- picture money -- left over money from money raised by seniors (high school)
    • faculty -- money generated by teachers can be spent on teachers i.e. coke machine in faculty lounge, hospitality dues
    • booster groups
  58. How is money raised by booster groups handled?
    • if children make money it runs through internal accounts
    • if parents make money can run through own account
  59. What is a tax yield?
    The levy of revenue that is raised.
  60. What is a sumptuary tax?
    A tax imposed to regulate or control what is not in the public interests i.e. alcohol, tobacco
  61. What is a simpiler formula that is similar to District Power Equaliztion?
    Guarenteed Tax Base
  62. What is human capital?
    money you invest in people OR the people you hire
  63. What did Marx think about education?
    should be free to student and exist to train citizens on the value of government
  64. What did Keynes think about education?
    government must provide education, paid by progressive tax that redistributes wealth