Presenter: Rebecca H. Steere

Faculty Sponsor: Brenda K. Bushouse

School: UMass Amherst

Research Area: Public Policy

Session: Poster Session 1, 10:30 AM - 11:15 AM, Auditorium, A57

ABSTRACT

The Federal Impact Aid Program was authorized in 1950 under Title VII, Part A of the Elementary and Secondary Education Act (ESEA), to support school districts that lose local property tax revenue due to federal presence, including military bases, Indian lands, low-rent housing, and other federal properties. Impact Aid is the oldest K-12 education program serving nearly eight million students in approximately 1,100 school districts, but has not been fully funded since 1969. Local revenue comprises the overwhelming majority of local budgets, districts rely on Impact Aid to meet baseline operating expenses. Impact Aid uniquely goes directly from the federal government to school districts and can be spent flexibly. While research exists on the individual aspects of the program, no recent work has collectively examined how districts utilize the funding. As modern school funding debates evolve and manifest, understanding the dynamics of the Impact Aid program is essential for evaluating the program’s significance in mitigating the local tax revenue impacts on federal and Indian lands. This study aims to identify commonalities among groups and the challenges arising from the type of federal presence and the communities they serve. This mixed-methods study takes a holistic approach, gathering Impact Aid payment data and interviews with school administrators in school districts that receive Impact Aid. This study finds that Impact Aid serves a unique and powerful role by flexibly fulfilling the federal obligation to replace lost local tax revenue and enabling schools to provide adequate education.