Abstract
The purpose of this paper is to provide the most recent national information available on the relationship between school district poverty, local fiscal needs and capacities, and Chapter 1 allocation levels. Two central questions will be addressed. First, what is the relationship between a school district’s poverty rate (the primary basis for Chapter I allocations) and its local revenue raising capability? Second, how are Chapter 1 funds allocated among districts with different poverty rates, fiscal capacities, and local revenue bases? Following a presentation of findings related to these questions will be a discussion of some of their implications with regard to targeting federal compensatory aid to the “right” school districts, schools and students.
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