School Financing Arrangements Are Most Vulnerable to Being Declared Unconstitutional

question 28

Multiple Choice

School financing arrangements are most vulnerable to being declared unconstitutional in

• A)State 1, where taxpayers claim they cannot afford any further increases in property taxes.
• B)State 2, where there is no state income tax.
• C)State 3, where annual revenues in all districts fall below projected needs.
• D)State 4, where there are substantial differences in districts' average spending per student.

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Definitions:

Income Source

The origin or means through which an individual, company, or entity earns money.

Utility Function

An expression that captures how a consumer ranks different bundles of goods based on the level of utility or satisfaction each bundle provides.

Labor Income

Earnings from work or employment, including wages, salaries, bonuses, and any other form of payment for labor services.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.