Abstract
The combined effects of court-imposed school finance equalization and various tax limitation measures in California have created a centralized, state system of school finance. An immediate benefit of centralization was greater revenue equity among the state's school districts. On the other hand, new inequities have been created as decision making on school funding shifted from local districts to the state legislature. Access to decision making, mobilization of political power, and the legitimation of new interests have created a new politics of educational finance. This article examines the political tensions and conflicts that have arisen as a consequence of state control over local finance. Specifically, I argue that categorical funding has become a vehicle for politicians to channel funds to constituent interests. This article examines the growth of categorical funding in relation to the Serrano mandate and the extent to which categorical funds serve narrow political interests as opposed to broad state policy interests.
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