Question: c) Consider a state with two school districts. District 1 has a property tax base of 250,000 per student and taxes itself at 1.5%. District

c) Consider a state with two school districts. District 1 has

c) Consider a state with two school districts. District 1 has a property tax base of 250,000 per student and taxes itself at 1.5%. District 2 has a property tax base of 750,000 and taxes itself at 1%. Assume District 2 declines all state aid. What value for the guaranteed tax base (V*) would equalize total per pupil spending in District 1 to that of District 2 assuming each district maintains its current tax rate? (8 points) d) What is a downside of a state finance system that involves the practice of recapture? (3 points) c) Consider a state with two school districts. District 1 has a property tax base of 250,000 per student and taxes itself at 1.5%. District 2 has a property tax base of 750,000 and taxes itself at 1%. Assume District 2 declines all state aid. What value for the guaranteed tax base (V*) would equalize total per pupil spending in District 1 to that of District 2 assuming each district maintains its current tax rate? (8 points) d) What is a downside of a state finance system that involves the practice of recapture? (3 points)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

a) What is the policy lever available to states under the Guaranteed Tax Base? (2 points) b) What are the policy levers available to states under Foundation Aid? (2 points) c) Consider a state with...

c) Consider a state with two school districts. District 1 has a property tax base of 250,000 per student and taxes itself at 1.5%. District 2 has a property tax base of 750,000 and taxes itself at...

Consider a state with two school districts. District 1 has a property tax base of 250,000 per student and taxes itself at 1.5%. District 2 has a property tax base of 750,000 and taxes itself at 1%....

Prepare an Excel sheet summary comparison summary that addresses the following: What type of pension fund does the state provide to employees How is the pension fund actually funded - who pays for it...

a brief summary what was understood on the aspect of the causes or effects of segregation in city ( any kind of city within US). 1000word. Thank you REFERENCE: CHAPTER 5 Residential Segregation and...

What are the answers for thise financial ratio analysis for JetBlue case, acording to the following: 1) Current ratio(Liquidity) 2) Total debt 3) Debt-equity 3) Inventory turnover 4) Receivables...

hello, please see attached I need help with. I only need the 2 tax memos since I already prepared the tax forms. I need an original paper with proper references APA format. Thanks ACC 700 Milestone...

1. T has a tax base of $30,000 and pays a tax of $2,500 on the first $25,000 and $750 on the next $5,000. This is an example of what type of tax rate? a. Proportional b. Progressive c. Regressive d....

Remeasuring a trial balance and analyzing results. In order to demonstrate the use of the remeasurement process, assume that at the beginning of the year a U.S. parent company invested 100.000...

Fix the errors of the following sentences! Creating Parallel Structure When Listing Items 1. To narrow a Web search: Place quotation marks around a phrase when you want an exact term. Many search...

Employing the Treynor - Black Model, an investment manager is attempting to combine a security with the market portfolio in order to obtain a portfolio with a higher Sharpe Ratio. The targeted...

QUESTION 13 You are given the following code: class Employee **Common base class for all employees" def __init__(self, name= salary=0,date=""); self empName = name self empSalary = salary self...