“E” is for the Education Finance Act. School finance reform emerged as an important issue in the early 1970s when state funding of schools was challenged in California and Texas. The Education Finance Act was signed into law by Governor James B. Edwards in 1977 and first appeared in the state Appropriations Act in 1978—and was phased in over a five-year period. EFA is a “foundation program” designed to provide a fiscal foundation—or minimum funding level—that would enable schools to deliver a set of core educational services. EFA is also an “equalization grant program” because state funding is intended to compensate for differences in local property wealth. Property-poor school districts receive more state aid than property-rich districts. Despite the Education Finance Act's goal of funding equalization, disparities in per-pupil spending between rich and poor districts still remain.
“E” is for the Education Finance Act
