"At the end of the 20th century, the constitutionality of school finance systems in Vermont and New Hampshire was challenged in courts for the first time. Both states initiated dramatic school finance reforms after their school finance systems were ruled as unconstitutional. This study aims to evaluate the effect of these school finance reforms on per pupil spending. By utilizing a quasi-experimental research design and using school districts in Maine and Rhode Island as comparison groups, this study found that the school finance reform in Vermont decreased per pupil spending in rich school districts by 4-10% and increased per pupil spending in poor school districts by 2-5%. The school finance reform in New Hampshire decreased per pupil spending in rich school districts by 5-7% and had no significant effect on per pupil spending in poor school districts. The results from this study suggest that restrictions on the use of state aid are needed and should be considered in the process of school finance policy design. This study also indicates that directly transferring property tax revenue from rich school districts to poor school districts is probably not a sustainable way to achieve equity in education spending because it stimulates strong opposition from school districts whose tax revenue is recaptured"--Page xii.

At the end of the 20th century, the constitutionality of school finance systems in Vermont and New Hampshire was challenged in courts for the first time. Both states initiated dramatic school finance reforms after their school finance systems were ruled as unconstitutional. This study aims to evaluate the effect of these school finance reforms on per pupil spending. By utilizing a quasi-experimental research design and using school districts in Maine and Rhode Island as comparison groups, this study found that the school finance reform in Vermont decreased per pupil spending in rich school districts by 4-10% and increased per pupil spending in poor school districts by 2-5%. The school finance reform in New Hampshire decreased per pupil spending in rich school districts by 5-7% and had no significant effect on per pupil spending in poor school districts. The results from this study suggest that restrictions on the use of state aid are needed and should be considered in the process of school finance policy design. This study also indicates that directly transferring property tax revenue from rich school districts to poor school districts is probably not a sustainable way to achieve equity in education spending because it stimulates strong opposition from school districts whose tax revenue is recaptured.

The aim of this research was to investigate one particular state's efforts to reform a substantially unequal educational environment through legislative efforts designed to improve funding equity and adequacy across school districts. The state is Vermont, and the legislation is titled Act 68 An Act Relating to Education. Act 68 was passed by the Vermont State Legislature in February of 2004. Act 68 followed the controversial and politically charged legislation passed in 1997 titled Act 60 Equal Educational Opportunity Act. Now in the third year of implementation, data is starting to emerge which will begin to address the question as to whether this school funding vehicle is having the desired effect of creating an equitable and adequate system of public education in the state of Vermont. The purpose of this study was to examine Vermont's experience with statutory changes to the state school finance formula with the aims of informing the broader debate in states grappling with the issue of equity and adequacy promulgated or inhibited by various school finance legislation.