What special-purpose government agency is most responsible for making decisions at the local school level?

Answer: Neighborhood school district

Explanation: Neighborhood school district is a multi-purpose agency tasked with the responsibility of making decisions at the local school level, they operate under the guidance of the state where it is located. Each Neighborhood school district has powers to mediate and handle conflicts involving Student and Teachers. Most of the states in United States of America gave powers to neighborhood school district to tax it's students. Only Virginia require the neighborhood school districts to receive funds from the local government authority. In Virginia, neighborhood school districts don't have taxing powers.