How does funding effect outcome of education, racial and ethnic gap

Funding is referred to as the provision of financial resources to finance a program, need and project and is usually by the government or an organization. Nevertheless, the term can be generally used when referring to the use of internal reserves by a firm to satisfy its requirements for cash. On the other hand, the term financing means acquiring capital or funds from exterior sources. There are innumerable sources of funding such as venture capital, credit, grants, donations, subsidies, taxes, and savings. The papers seeks to explain the effects of funding on outcome of education, racial and ethnic gap.

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However, when funds are evenly distributed, it means that chances are high to the access to same resources. Acquisition of same resources by the minority schools can result in similar outcomes with the advantaged schools. Funding widens the ethnic gap on one hand while it narrows the same gap on the other. For this reasons, funds matter, resources that require funds matter, and an equal distribution of funds can improve outcomes. Policy makers should always be careful when making decisions on matters concerning school finance.

Greene, J. P., & Forster, G. (2002). Effects of Funding Incentives on Special Education Enrollment. Civic Report.

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