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States’ Intervention in School Districts’ Finances

This research brief investigates state fiscal powers over districts, providing the necessary foundation for policymakers and researchers to understand how states might best address districts’ financial conduct and difficulties going forward. The authors consider ways that the state statutes provide the bases and means for state intervention into local district finances. They look for patterns among these state statutory provisions, and present a useful typology of system design across states. Based on that typology, they explore correlations between a state’s potential for fiscal intervention and other major areas of education policy.