The Role of Property Assessment Oversight in School Finance Inequality

Inequality in school funding, linked to disparities in academic achievement, frequently arises from reliance on local property taxes. While reforms address differences in property value and tax rates, differences in assessment accuracy are underexamined. We study a state-led property assessment intervention to show how assessment inaccuracy affects school finance inequality. Using administrative data and difference-in-differences analysis, we find that the intervention substantially increased assessments, reduced inequitable assessment variation, and raised total local revenue. Our findings highlight the need for accurate property assessments to ensure fair distribution of educational resources and reinforce the importance of state policies that promote assessment accuracy.