EDUCATIONAL RETRENCHMENT IN SUBURBAN SCHOOL DISTRICTS

This study examines the process of change in school district financing. The years from 1972 to 1980 presented a major problem of financial adjustment for many, if not most, suburban school districts. When budget cuts are necessary, are they made equitably across the various funds or are most cuts made in instructional funds. The analysis tests the applicability of three models of school system financing--the rational-economic model, a status model and a political model. Using five alternative dependent variables ranging from changes in total district expenditures to changes in per pupil instructional expenses as dependent, the districts as a whole adhere to a very rational process of adjustment to changes in student enrollment, i.e., changes in student population is the best predictor of budget changes. With per pupil measures as dependent, it is necessary to include level of community resources in conjunction with changes in student population to adequately explain retrenchment activities of suburban school districts. Lack of resources creates the necessity of active involvement in school systems which, in turn, affects the allocation of per pupil monies.