The 'Disparate Impact' of Funding Schools with Property Taxes

Laura Bliss argues that implicit discrimination in the boundary-shaping policies of school districts necessitates reform of the property-tax funding system.

2 minute read

July 30, 2015, 6:00 AM PDT

By Emily Calhoun


School Drop Off

Tom Gowanlock / Shutterstock

An interactive map of school districts across the country, designed by the non-profit EdBuild, show geographically illogical boundaries similar to those drawn by politicians for electoral districts. Low-income districts such as the Camden city school district in Camden, N.J. are disproportionately large and surrounded by many small, affluent districts, leading to "scattered, wasted state and local resources, and to low educational and economic outcomes for students in Camden," writes Laura Bliss. District boundaries such as those in Toledo, OH, are incontiguous, "and African-American students are forced to bus across multiple district lines to get to schools that will admit them, due to a legacy of intentional boundary-drawing to keep them out of certain districts."

According to the latest Census report on public school revenues, 45.3 percent of revenue comes from local sources, with 65 percent of that coming from local property taxes. Bliss suggests that public school districts remain racially and socio-economically segregated 50 years after Brown v. Board of Education because this system of property tax funding incentivizes the shaping of districts according to income levels.

The Supreme Court recently ruled that "disparate impact" liability falls under the Fair Housing Act (FHA). Thus, the concentration of tax credit distribution to real estate developers building low-income housing in predominantly African-American neighborhoods is an implicit form of racial discrimination and violates the FHA. Like the steering and redlining practices of the previous century, the tax incentives to concentrate low-income housing in African-American neighborhoods makes housing in white neighborhoods less available to minorities. Writing for the majority, Justice Kennedy opines: "Much progress remains to be made in our Nation’s continuing struggle against racial isolation...we must remain wary of policies that reduce homeowners to nothing more than their race."

Bliss writes, "The disparate-impact ruling was a national victory for fair housing. Now, more than ever, we need one for financing fair education."

Wednesday, July 22, 2015 in CityLab

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight