1. One of the early traditions from our countrys educational past has been the practice of funding capital outlays completely from local sources. This approach of relying exclusively on local funds for capital outlay and debt service has been replaced with more equitable measures. Identify which of the following would be included in the changes that have occurred in school finance theory regarding the funding of facilities:

a. there are many justifiable reasons to fund school facilities differently than school operations

b. even though it has been determined that financing of education is a state responsibility, the financing of physical facilities remains the responsibility of local school districts

c. there is little justification for financing capital outlays on a different basis from current expenditures. If state financing of current operations is fair, so is state financing of capital outlays

d. it is easier for school districts to pay for facility costs if the payments can be spread over a longer period of time

2. One of the major factors that has restrained many districts from needed construction has been the high assessment of their taxable value. a. True b. False

3. Select the following characteristic that would accurately reflect the changes taking place regarding the funding of capital outlays for school facilities.

a. no states allow local districts to accumulate funds for future building needs.

b. because of the obvious similarities, there would be no real problem in equitably incorporating the varied capital outlay debt of the many districts within a state

c. the expected long life of school buildings would make it plausible to spread the interest cost of indebtedness, for the construction of school district facilities, over longer periods of time

d. there is no defense for the traditional method of financing school facilities by relying on local property tax when more tax resources are available at the state level.