The relationship between local option school sales tax revenue and eighth grade students meeting academic standards in Alabama public school districts, 2004--2006

The purpose of this study was to examine the impact of local school sales tax revenue on student achievement in Alabama public school districts. Four achievement measures were used in the analysis: reading test scores for eighth grade levels three and four and mathematics test scores for eighth grade levels three and four. Local school sales tax revenue, average daily membership, free and reduced lunch, highly qualified teacher status, and eighth grade mathematics and reading student achievement scores from the Alabama Mathematics and Reading Test were collected from the Alabama State Department of Education.;The dependent variable, student achievement, was correlated with the independent variables which included local school sales tax revenue per average daily membership, free and reduced lunch, and highly qualified teacher percentages. Statistical analyses (SPSS 16.0) were used to evaluate the effect of local school sales tax revenue on student achievement.;This study utilized descriptive statistics and linear regression analysis to determine the extent of the relationship between the dependent and independent variables. Following significant bivariate correlations, the research utilized linear regression to isolate the covariance effects of free and reduced lunch and highly qualified teacher status from student achievement and local school sales tax revenue per average daily membership. The community wealth of the district was defined in terms of free and reduced lunch. A distinction was made between low- and high-income districts using the median of free and reduced lunch data. Additionally, crosstabulation was utilized to distinguish separate relationships between the dependent variable and independent variables by low- and high-income districts when analyzed by a Pearson’s product-moment correlation (r).;Regression analysis was employed to explain the impact of local school sales tax revenue per average daily membership on student achievement using removal regression procedures. The research evaluated the Pearson product-moment correlation (r) and the coefficient of determination ( r2) as each variable entered the analysis demonstrated by the correlation equation. This regression analysis isolated the effects of local school sales tax revenue per average daily membership from other independent variables.;Results of the study indicated that local school sales tax revenue per average daily membership had a positive impact on student achievement in reading and mathematics level four scores and mathematics level three scores in high-income public school districts that used local school sales tax revenue to fund public education. Additionally, the degree of relationships found in this study may be the consequence of a third variable such as family involvement or community interactions not included in this study.;Recommendations concluded from the study were that policy makers, administrators, and community leaders should (a) consider the significance of district local school sales tax revenue on student achievement; (b) explore other variables contributing to the impact of student achievement in Alabama, such as income tax revenue, median income, and total county sales tax revenue, and (c) replicate the study contrasting city and county public school districts that use local school sales tax revenue as funding sources.