Dive Brief:

• Wisconsin school districts are increasingly relying on private donations to boost available spending, which is having the effect of widening the inequity gap between neighboring districts, according to Education Week.
• Private donations come in a variety of fashions, including parent-teacher organizations, private companies and booster clubs — and in the Kohler district, private donations have helped pay for tablets for coding, electronic chalkboards and new lab equipment.
• In three Wisconsin districts, the differences in private contributions are stark: The Kohler district raised $863 in private donations per student in 2014, while Sheboygan Area raised $62 per student and Sheboygan Falls raised only $27.

Dive Insight:

The disparities between private donation funding to particular school districts mirrors the gaps between the state and local funding particular districts receive. School districts receive much of their money from tax revenue, and the wealthier the district, the more plentiful the tax base and the higher the revenue generated

The issue is that these gaps can become self-sustaining over time. Without a tax base and accompanying tax revenue (as well as private donations from wealthier patrons), school districts fall further behind neighboring districts and states, which leave schools consistently underfunded and makes the possibility of enhanced tax revenue unlikely. Donations alone may not exacerbate the issue significantly, but they are certainly illustrative of the larger challenge.

Some argue that private financing of public schools should not be allowed due to the fact that it heightens the inequality gap among schools and districts, though it may be hard to convince wealthier parents with the means and desire to finance events and activities for their child’s school that they should not. Since federal aid to individual districts can often be paltry at best, the fight will likely come in state legislatures and courts. Plaintiffs went before Pennsylvania’s State Supreme Court last fall, arguing that the state’s allocation of funds was patently unfair for impoverished school districts. Favorable rulings for plaintiffs in situations like these could lead legislatures to craft more progressive funding plans for districts