Black and poor students are suspended from U.S. schools at higher rates than white and non-poor students. While the existence of these disparities has been clear, the causes of the disparities have not. We use a novel dataset to examine how and where discipline disparities arise. By comparing the punishments given to black and white (or poor and non-poor) students who fight one another, we address a selection challenge that has kept prior studies from identifying discrimination in student discipline. We find that black and poor students are, in fact, punished more harshly than the students with whom they fight.

In the aftermath of Hurricane Katrina, the Orleans Parish school district fired over 4,000 public school teachers as the city underwent a transition to a market-based system of charter schools. Using administrative data, we examine whether and how these teachers returned to public school employment and teaching. We estimate that school reform and dismissal substantially increased teacher exit from the district and the state relative to similar teachers in other parishes that suffered hurricane damage. Dismissed teachers who returned were more likely to be Black and locally trained, but new hiring through alternative certification programs led to a substantial demographic shift. A teacher population that had been highly experienced and more than 70% Black shifted through new hiring at charter schools. Implications for other districts considering teacher employment reforms are discussed.

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The years during and after the Great Recession constrained revenue across all levels of government. Revenue shortfalls in states decreased intergovernmental transfers, which compounded the plight of local governments already facing large declines in own-source property taxes. Among the many casualties of this economic downturn were school districts, which responded by implementing a variety of financial management strategies to continue providing educational service provision to more than 50 million students across the United States. One strategy school districts continue to utilize is countercyclical stabilization of expenditures with fiscal slack, which raises an important—and, to date, largely unanswered—question of how school districts manage to accumulate fiscal slack, given both volatility and decreases in revenues in the years following the Great Recession. One approach is to use implicit slack from biased forecasts to generate explicit fiscal slack in the unassigned fund balance. This article provides evidence for this strategy by empirically testing it with data from Kentucky school districts from school years 2001-2002 to 2013-2014. The findings indicate that school districts are engaged in strategic planning with implicit fiscal slack, which allows them to accumulate explicit fiscal slack, a cornerstone of prudent financial management that can provide budgetary flexibility during financial uncertainty. The relationship between implicit and explicit fiscal slack is heterogeneous over the business cycle, providing further evidence of strategic planning. Practitioners can also use the findings of this article to support the strategic use of forecasts to help accumulate unassigned fund balance, particularly in the years after the Great Recession.