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<classification authority="sudocs">GA 1.13:HEHS-98-36</classification>
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 <subject>School districts</subject>
 <subject>Federal/state relations</subject>
 <subject>Public schools</subject>
 <subject>Disadvantaged persons</subject>
 <subject>Intergovernmental fiscal relations</subject>
 <subject>Aid for education</subject>
 <subject>Economically depressed areas</subject>
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 <identifier>Head Start Program</identifier>
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<titleInfo>
 <title>School Finance: State and Federal Efforts to Target Poor Students</title>
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<abstract>Pursuant to a congressional request, GAO reviewed state and federal
efforts to target poor students and the funding gaps between districts
with high and low proportions of poor students, focusing on: (1) the
extent to which state and federal funding is targeted to districts on
the basis of the number of poor students; and (2) the effect of state
and federal funding on the amount of funds available to high-poverty
compared with low-poverty districts.&lt;p/&gt;GAO noted that: (1) school finance systems in over 90 percent of the
states had the effect targeting more state funds to districts with large
numbers of poor students in school year 1991-92, regardless of whether
the system explicitly intended to do so; (2) the extent of the targeting
varied widely, however; (3) New Hampshire targeted poor students the
most, providing an additional $6.69 per poor student for every $1
provided to each student; school finance systems in four states
(Montana, Nevada, New Mexico, and New York) had the effect of targeting
no additional funding per poor student; (4) the national average was
$.62 in additional state funding; (5) federal funding was more targeted
than state funding, providing an average of $4.73 in additional federal
funding per poor student nationwide for every $1 provided for each
student; (6) because federal funds were more targeted than state funds,
the combination of federal and state funding increased the average
additional funding per poor student from $.62 to $1.10 nationwide for
every $1 provided for each student; (7) reported changes in federal
education programs and state school finance systems since school year
1991-92 would probably result in federal funds being more targeted than
state funds; (8) state and federal funding reduced but did not eliminate
the local funding gap between high- and low-poverty districts in many
states; (9) high-poverty districts had less local funding per weighted
pupil in 37 of the 47 states GAO analyzed; (10) when GAO added state and
federal funds to local funds for GAO&apos;s analysis, only 21 states still
had such funding gaps, and these gaps were smaller in each state; (11)
nevertheless, about 64 percent of the nation&apos;s poor students live in
these 21 states; (12) nationwide, total funding levels in low-poverty
districts were about 15 percent more than those in high-poverty
districts; (13) although targeting helped close the funding gap, the
percentage of total funding from state and federal sources was more
important in reducing the gap; and (14) gaps were smaller in states
whose combined state and federal share of total funding was relatively
high.</abstract>
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<subject>
 <topic>School districts</topic>
 <topic>Federal/state relations</topic>
 <topic>Public schools</topic>
 <topic>Disadvantaged persons</topic>
 <topic>Intergovernmental fiscal relations</topic>
 <topic>Aid for education</topic>
 <topic>Economically depressed areas</topic>
 <topic>State/local relations</topic>
 <topic>Students</topic>
 <topic>Head Start Program</topic>
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