Econ Active Research Lunch - Lunch @ 11:30am, Presentation @ 12:00pm in UH850
Presenters: Chuanyi Guo, Chris Cruz
The Impact of State Financial Intervention on School District Fiscal Health and Spending Patterns
In Fiscal Year 2003, Illinois State Board of Education (ISBE) launched a new system named “School District Financial Profile” (SDFP) to help monitor the finances of public school districts and identify which are in financial difficulty. SDFP uses five financial measures to assess financial health for each district, and generates a composite score to identify the district as being in one of four designations. ISBE will be monitoring and providing technical assistance for districts designated as Financial Early Warning and Financial Watch (the two categories for districts with worse financial health). This paper explores how the financial intervention would affect future fiscal performance by employing a regression discontinuity (RD) design. Future work includes the effect of the intervention on spending patterns of districts, including but not limited to enrollment, per-pupil expenditure, class size, construction expenditure, and capital expenditure. Heterogeneous effects by district type and district wealth will also be examined in the future.