Book Review: Radical Finance Solutions for America's Public Schools

Public education in the United States remains deeply unequal, despite decades of reform efforts. A new book by education policy expert David I. Backer argues that the root of the problem lies in the way schools are financed—and proposes sweeping changes to make funding more equitable.

In *As Public as Possible: Radical Finance for America’s Public Schools*, Backer examines how property taxes, school bonds, and pension systems contribute to disparities in school quality. The book, published by The New Press in 2025, offers a blueprint for radical reform, emphasizing that public education must become *as public as possible*—shielded from private interests and financial markets.

Backer, a professor at Seton Hall University, begins by explaining how local property taxes—long the backbone of school funding—reinforce inequality. Wealthier neighborhoods generate more revenue, allowing them to offer better-resourced schools. Meanwhile, historically marginalized communities, including Black and Latino neighborhoods subjected to redlining, continue to face underfunded schools. The result is a system where access to quality education depends largely on where a child lives.

To measure these disparities, Backer introduces a "super-expropriation index," a tool akin to the Gini coefficient that quantifies the gap in funding between rich and poor school districts within a region. His analysis shows extreme disparities in cities like New Orleans (index of 1.0) and Philadelphia (0.6). The solution, he argues, is to pool property tax revenues at the state or even national level and redistribute funds to ensure a minimum level of spending per student. He points to states like Minnesota and Vermont as models where such reforms have reduced inequality.

School bonds, another key funding mechanism, also disproportionately disadvantage poorer districts. These districts must borrow on Wall Street, where higher interest rates and fees further strain their budgets. Backer cites the example of Bloomberg terminals displaying school bonds as financial securities, highlighting how investors view struggling districts as credit risks. He proposes alternatives such as state bond banks and a National Investment Authority—akin to the Federal Reserve’s pandemic-era Municipal Liquidity Facility—to stabilize funding and reduce reliance on private markets.

The book also critiques the financialization of teachers’ pensions. Many states have shifted from defined-benefit to defined-contribution plans, shifting investment risk onto individual teachers. Backer warns that this shift not only increases financial instability for educators but also serves as a political tool for austerity advocates, who use pension shortfalls to justify budget cuts. His solution: redirect pension funds toward school infrastructure, ensuring collective investment in public education.

While *As Public as Possible* does not delve deeply into the political hurdles of such reforms, it presents a compelling case for systemic change. Backer’s proposals—from pooled taxation to pension-backed school bonds—aim to break the cycle of inequality that has long plagued American public schools. Whether such radical finance can gain traction in a politically divided landscape remains an open question. But the book makes a clear argument: if public education is to fulfill its promise, its funding must be as public as its mission.