Dive Brief:
- In the 2015-16 school years, seven years after the recession caused major hits to school districts' budgets, more real dollars were invested in Pre-K through 12 than before the recession, Stephen Cornman, a statistician with the U.S. Department of Education’s National Center for Education Statistics, noted after examining a new analysis released this month that confirms an earlier report released in December. After four years of consecutive spending cuts beginning in 2009-10, overall school spending increased for the next three years to reach those levels, according to the Hechinger Report.
- Per-pupil spending levels vary widely across the nation and, as of the 2015-16 school year, there still remained a 3.5% funding gap between allocations for students in wealthier and poorer districts nationwide. But a look at data within each state shows a different story. In 40 states, poorer districts are now better funded than the richest districts, which helps to compensate for the additional educational resources needed for low-income students. The effect of charter school spending on the equity formula is not clear.
- Despite the increase in spending, not all of the additional money is reaching the classroom as building maintenance needs, administrative overheard, and pension and healthcare costs continue to increase disproportionately.
Dive Insight:
While the recession itself was relatively short — 18 months according to the article — the road to recovery from recession-related school spending cuts has been long. However, the restoration of school spending by the 2015-16 school year is good news. Many states are continuing to see economic improvement, which results in being able to pour more resources into schools.
Though the overall picture looks promising, not all school districts are feeling the same positive effect. School district budgets depend on many different factors, which vary widely depending on decisions at the state and local levels. And while overall per-pupil spending may increase, rising pension payments and healthcare costs are causing many states to have to reevaluate their benefit programs to avert disaster down the road. At the local level, years of neglect of buildings during recession-level spending have increased the need to build or repair buildings. During this same period, the need for more technological resources have caused schools spend more for infrastructure upgrades and computers.
Predictions of another imminent recession can also dampen the positive mood. Some economic experts say a downturn could come as early as 2020. As school leaders prepare budgets for the coming year, they may need to consider this before committing to long-term recurring expenditures. State legislatures are also considering whether they need to set more aside for the rainy day to come.
As district leaders weigh priorities, they need to carefully consider the overall picture and make sure that funds are being used as wisely as possible and in line with district goals. State lawmakers also tend to consider the return on investment of those funds and some school districts use public funds more effectively than others. As teachers clamor for increased pay, IT departments demand more resources, buildings cry out for repairs, and administrative costs continue to escalate, more departments are trying to devour the fiscal pie. Stepping back and looking at the big picture of the educational needs of students can help put matters into perspective.
