g.* In the 1970s, California switched from local financing of public schools to statewide (and equalized) financing of its public schools. Statewide school spending appears to have declined as a result. Some have explained this by appealing to the fact that the income distribution is skewed to the left, with the statewide median income below the statewide mean income.

Suppose that local financing implies that each public school is funded by roughly identical households (who have self-selected into different districts as our Chapter 27 Tiebout model would predict), while state financing implies that the public school spending level is determined by the state median voter. Can you explain how the skewedness of the state income distribution can then explain the decline in statewide public school spending as the state switched from local to state financing?