Pointing to the disparities between wealthy and impoverished school districts in areas where revenue depends primarily upon local taxes, reformers repeatedly call for the centralization of school funding. Their proposals meet resistance from citizens, elected officials, and school administrators who fear the loss of local autonomy.

Bryan Shelly finds, however, that local autonomy has already been compromised by federal and state governments, which exercise a tremendous amount of control over public education despite their small contribution to a school system's funding. This...