Distributional Effects and Distorted Incentives: Funding Policy Under the Federal Impact Aid Program

by Ron Zimmer, Richard Buddin, Brian Gill

Purchase Print Copy

 FormatList Price
Add to Cart Paperback25 pages Free

Military children living in the United States generally attend a local public school and have a portion of their education expense paid for by the federal government through the U.S. Department of Education's Impact Aid Program. This study focuses on the workings of the Impact Aid program with a special emphasis on the implications of the statue for military children. The analysis examines the sensitivity of the program funding to various features of military installations. The funding formula for Impact Aid is complex, and this study provides a detailed examination of how well the formula conforms to the purposes of the statue. More specifically, the authors examined the impact of the basic support program (BSP) coupled with the learning opportunity threshold (LOT) affects the distribution of resources.

Originally published in: Journal of Education Finance, v. 27, no. 4, Spring 2002, pp. 939-963.

This report is part of the RAND Corporation reprint series. The Reprint was a product of the RAND Corporation from 1992 to 2011 that represented previously published journal articles, book chapters, and reports with the permission of the publisher. RAND reprints were formally reviewed in accordance with the publisher's editorial policy and compliant with RAND's rigorous quality assurance standards for quality and objectivity. For select current RAND journal articles, see External Publications.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.