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alculate the amount that a school district would get in grant funding from a state under the following grant regimes. For the school district in question, the value of land in the district is $100,000 per pupil and the local property tax rate for the school district is 2.5%. Foundation grant with a foundation level of $6,000 per pupil and foundation tax rate of 3% Guaranteed tax base (GTB) grant with a guaranteed base of 200,000 per pupil. What would happen under each grant regime if the school district raised its tax rate to 3% ? Given the pattern of results in (a) - (C), what can you say about the incentives offered for school districts in setting property tax rates?

alculate the amount that a school district would get in grant funding from a state under the following grant regimes. For the school district in question, the value of land in the district is $100,000 per pupil and the local property tax rate for the school district is 2.5%. Foundation grant with a foundation level of $6,000 per pupil and foundation tax rate of 3% Guaranteed tax base (GTB) grant with a guaranteed base of 200,000 per pupil. What would happen under each grant regime if the school district raised its tax rate to 3% ? Given the pattern of results in (a) - (C), what can you say about the incentives offered for school districts in setting property tax rates?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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alculate the amount that a school district would get in grant funding from a state under the following grant regimes. For the school district in question, the value of land in the district is $100,000 per pupil and the local property tax rate for the school district is 2.5%. Foundation grant with a foundation level of $6,000 per pupil and foundation tax rate of 3% Guaranteed tax base (GTB) grant with a guaranteed base of 200,000 per pupil. What would happen under each grant regime if the school district raised its tax rate to 3% ? Given the pattern of results in (a) - (C), what can you say about the incentives offered for school districts in setting property tax rates?
Transcribed Image Text:alculate the amount that a school district would get in grant funding from a state under the following grant regimes. For the school district in question, the value of land in the district is $100,000 per pupil and the local property tax rate for the school district is 2.5%. Foundation grant with a foundation level of $6,000 per pupil and foundation tax rate of 3% Guaranteed tax base (GTB) grant with a guaranteed base of 200,000 per pupil. What would happen under each grant regime if the school district raised its tax rate to 3% ? Given the pattern of results in (a) - (C), what can you say about the incentives offered for school districts in setting property tax rates?
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