Date of Award


Degree Name

Doctor of Education


Educational Leadership, Research and Technology

First Advisor

Dr. Edgar A. Kelley

Second Advisor

Dr. Larry Schlack

Third Advisor

Dr. C. Robert Muth


Investment of school district funds occurs within the framework provided by statutes and policies of the State and local Boards of Education. The purpose of this study was to determine the relationship between five funding variables and investment income in Michigan public school districts. The five funding variables studied were (1) pooling versus no pooling, (2) summer tax collections versus winter tax collections, (3) in-formula versus out-of-formula status, (4) size of operating budgets, and (5) size of fund balances. The two dependent variables studied were (1) investment income and (2) rate of return on investments as a function of expenditures.

1984-85 financial data from 127 randomly selected school districts were analyzed. The major findings of this study were: (1) Pooling does not have a significant effect on investment income (p > .05). (2) The levying of summer taxes has a significant effect on the amount of investment income a district earns (p < .001). (3) The formula status of districts is the best predictor of investment income (p > .05). (4) Out-of-formula districts had a significantly greater rate of return on investment income as a function of expenditures than did in-formula districts (p < .001). (5) Districts with large operating budgets have more investment income than districts with small operating budgets (p < .001). (6) Districts with large fund balances have more investment income than districts with small fund balances (p < .001).

Two recommendations were made in this study. School districts should adopt clear and comprehensive investment policies. School districts should design and use practices which carry out their policies.

Access Setting

Dissertation-Open Access