We will look at a compilation of those changes to see where the most significant shortfalls have occurred. The final tactic we will take is to compare the budget allocation formulas FCPS used in its budgeting process in FY 1989 with those used in the past three years. These formulas drive the allocation of funds for classroom use, and changes in the formulas reflect the greater or lesser availability of resources. This analysis is designed to estimate the financial impact of the most significant factors underlying the changes in the school operating budget over the past ten years. None of these are subject to straightforward measurement.
Economists have a variety of indices they use to measure inflation.
The one most commonly used in Fairfax County is the CPI-U for the Washington metropolitan area. This measures the rate of inflation for a fixed market basket of goods and services of constant quantity and quality consumed by typical urban consumers. It has recently been the object of some controversy as it is alleged to overstate the rate of inflation. The problems with measuring inflation in consumption are compounded when trying to measure inflation in a service industry. Because many analyses in Fairfax County are done using the CPI-U, the School Board auditor has used it here for consistency.