Because the local property tax base is typically higher in areas with higher home values, and there are persistently high levels
of residential segregation by socioeconomic status, heavy reliance on local financing contributed to affluent districts» ability to spend more per student.
For example, it takes into account any unmeasured factors, such as the
degree of residential segregation, to the extent that those factors remain constant over time.
Using 1980, 1990, and 2000 U.S. Census information, John Iceland and D. H. Weinberg in 2002 constructed dissimilarity
indexes of residential segregation by census tract in 220 metropolitan areas in which at least 3 percent of the residents were black or which had at least 20,000 black residents in 1980.
Because the local property tax base is typically higher in areas with higher home values, and there are persistently high levels
of residential segregation by socioeconomic status, heavy reliance on local financing enabled affluent districts to spend more per student.