This study examined advanced refundings of Indiana school construction bonds from 1993 to 1996. Purposes were to: (a) add to the professional knowledge base about advanced refundings; (b) evaluate the financial consequences on taxpayers; (c) determine benefits as measured by interest rates, terms, and payment amounts; (d) determine whether selected financial conditions and demographic variables impacted refunding outcomes.The population was all instances of advanced refundings by Indiana public school districts in the period studied. Data were collected from the bond transcripts prepared by legal counsels and placed in tabulation forms developed for the project.Primary findings included:(a) Three quarters of the refunding occurred in the first 10 years of the paymentstream; 27% occurred in the first four years.(b) As the size of the issue increased, the cost (as a percentage of the issue)decreased.(c) Mean decrease in interest rate for the refizndings was .023915 or 239 basis points.(d) Net fiscal impact was generally positive, with a mean savings of $224,218. (e) A negative correlation existed between district wealth and annual paymentamount (i.e., districts with high assessed valuations had smaller changes inannual payments).(f) A positive correlation existed between interest rate change and refunding amount (i.e., large issues were more sensitive to slight changes in interest rates).Selected conclusions included:(a) The benefits of refunding diminished with time (i.e., greatest benefits are likely in the first quarter of the payment stream).(b) Some refundings occurred when the decline in basis points was below a standard level used for municipal bonds; this suggests that school officials may engage in refundings for reasons that extend beyond savings (e.g., political benefits).(c) An economy of scale between refunding size and costs supports existing research.(d) Costs for local school district counsel varied considerably, suggesting that no compensation standard was used.(e) Wealthier districts were less interested in lowering annual payments; their pursuit of refunding may have been motivated by flexibility (i.e., shortening the debt life, accessing fiscal resources).(f) Districts with large bond issues benefited from refunding even when the declines in interest rates were slight.Eight recommendations were formalized. / Department of Educational Leadership

This paper investigates whether the audited financial statements of US independent school districts affect the districts' public provision of education services. Exploiting an increase in the regulatory threshold that exempts the school districts from preparing audited financial statements after 2015, I compare the newly exempted school districts with those that have never been exempted and those that have always been exempted. I find that the newly exempted school districts experience deteriorating financial and academic performance, population outflows, housing price decreases, and shrinking local tax revenues after the threshold increase. The evidence suggests that audited financial statements enhance the functioning of school districts.

Using a case study approach, this investigation focused on the decision-making processes involved in developing budgets in two Texas school districts following a tax limitation, or rollback, election. Factors influencing the decision-making processes included the rollback election's outcome in each district, the participants, the perceptions participants held of themselves, the perceptions participants held of others in the district and community, the decisions made, and the factors influencing participants' decisions. Two Texas school districts were selected as subjects of this study which used qualitative data collection methods. In one school district, the rollback election passed. In the other, it failed. Data collection included observations of school board meetings and budget workshops. Structured interviews of school board members and administrators, pro- and antirollback proponents, and newspaper editors were conducted. Questions focused on the budgetary decision-making processes before and after the rollback elections. They also solicited information fromsubjects regarding rollback elections, the factors precipitating the rollback elections and the impact of the rollback election campaign upon each school district. Document analyses were triangulated with the observations and interviews to identify the factors influencing the budgetary decision-making process. Following the rollback elections, school officials in both districts adopted a conservative approach to budgetary decision-making. In both districts, school board members and administrators listened more carefully to citizens' concerns. Citizen finance committees were formed in both districts following the rollback elections to receive community input into the 1989-90 budgets. The decision-making processes in both districts were influenced by school board members' and administrators' personal philosophies, the presence or absence of long-range district goals, and pressures to finance unfunded and underfunded state mandates. The budget documents produced in both districts following the rollback elections reflected a commitment to funding curricular rather than extracurricular programs. School officials protected teachers' and support staffers' salaries, recognizing the importance of maintaining employee morale.