Public schools in the United States serve millions of students, and their funding is a critical aspect of ensuring their success. This article examines the various sources of public school funding, how funds are distributed, and the progressivity of funding, with a focus on how funding affects students from low-income families.
Key Facts
- Public schools are funded through a combination of local, state, and federal dollars.
- Local funding for schools primarily comes from property taxes, with about 81% of local funding coming from this source.
- State funding for schools varies by state, with each state using a different funding formula to determine how much money each school district receives.
- The federal government provides a smaller portion of funding, covering less than 10% of school funding.
Distribution of Funds:
- Funding does not flow directly to schools; instead, it is distributed to school districts, which then allocate the funds for various purposes such as hiring staff, building and maintaining schools, and buying supplies.
- State funding is the primary mechanism for targeting districts that serve disadvantaged students, while the federal government also attempts to channel funding toward students from low-income families.
- Local funding levels can vary widely between districts, with districts that have mostly nonpoor students often having more money to spend than districts with many poor students.
Progressivity of Funding:
- Thirty-five states have funding formulas that attempt to target low-income students, but the effectiveness of these formulas in achieving their goal varies.
- Local funding is often regressive, with districts that have mostly nonpoor students receiving more funding than districts with many poor students.
- State government spending tends to correct for inequitable local spending, but in nearly half of the states, students from low-income families receive less state and local funding, on average, than their nonpoor counterparts.
- The federal government provides funding streams that are largely targeted based on students’ incomes, which helps shift the balance towards more progressive funding.
Sources of Public School Funding
Public schools receive funding from a combination of local, state, and federal sources (USAFacts, 2023).
Local Funding
Local funding for schools primarily comes from property taxes (Educationdata.org, 2023). Approximately 81% of local funding is derived from this source (Urban Institute, 2017).
State Funding
State funding varies by state, with each state using a different funding formula to determine how much money each school district receives (Educationdata.org, 2023). State funding is the primary mechanism for targeting districts that serve disadvantaged students (Urban Institute, 2017).
Federal Funding
The federal government provides a smaller portion of funding, covering less than 10% of school funding (USAFacts, 2023). Federal funds are allocated through various programs, such as Title I and the Individuals with Disabilities Education Act (IDEA) (USAFacts, 2023).
Distribution of Funds
Funding does not flow directly to schools; instead, it is distributed to school districts (Urban Institute, 2017). Districts then allocate the funds for various purposes such as hiring staff, building and maintaining schools, and buying supplies (USAFacts, 2023).
Progressivity of Funding
The progressivity of school funding refers to the extent to which funding is directed toward students from low-income families (Urban Institute, 2017).
Local Funding
Local funding is often regressive, with districts that have mostly nonpoor students receiving more funding than districts with many poor students (Urban Institute, 2017). This is because local funding levels are often a reflection of school district demographics.
State Funding
State government spending tends to correct for inequitable local spending (Urban Institute, 2017). In some cases, states have implemented progressive funding formulas that provide more funding to districts serving disadvantaged students.
Federal Funding
The federal government provides funding streams that are largely targeted based on students’ incomes (Urban Institute, 2017). This helps shift the balance towards more progressive funding.
Conclusion
Public school funding is a complex and multifaceted issue. While the goal of funding is to provide all students with a quality education, the distribution and progressivity of funding can vary widely. Understanding the sources and distribution of funding is essential for policymakers seeking to ensure that all students have access to the resources they need to succeed.
References
- Educationdata.org. (2023). Public Education Spending Statistics. https://educationdata.org/public-education-spending-statistics
- Urban Institute. (2017). School Funding: Do Poor Kids Get Their Fair Share? https://apps.urban.org/features/school-funding-do-poor-kids-get-fair-share/
- USAFacts. (2023). How are public schools funded? https://usafacts.org/articles/how-are-public-schools-funded/
FAQs
How are public schools funded?
Public schools are funded through a combination of local, state, and federal dollars. Local funding primarily comes from property taxes, state funding is allocated through various formulas, and federal funding is provided through programs such as Title I and IDE
How is funding distributed to schools?
Funding does not flow directly to schools; instead, it is distributed to school districts, which then allocate the funds for various purposes such as hiring staff, building and maintaining schools, and buying supplies.
Is school funding progressive?
The progressivity of school funding refers to the extent to which funding is directed toward students from low-income families. The progressivity of funding can vary widely depending on the funding source and the policies of individual states.
How can funding be made more progressive?
There are several ways to make school funding more progressive, such as increasing state funding for districts serving disadvantaged students, providing additional federal funding for low-income students, and reforming local funding formulas to reduce regressivity.
What are the challenges to equitable school funding?
There are several challenges to equitable school funding, including the reliance on local property taxes, which can lead to disparities between wealthy and poor districts, and the complexity of funding formulas, which can make it difficult to ensure that funding is distributed fairly.
How does school funding affect student outcomes?
Research suggests that increased spending on education can improve student outcomes, especially among low-income students. However, the relationship between funding and student outcomes is complex and depends on a variety of factors.
What can be done to improve school funding?
There are several things that can be done to improve school funding, such as increasing state and federal funding, reforming local funding formulas to make them more progressive, and exploring alternative funding sources such as a wealth tax or a financial transaction tax.
What are the latest trends in school funding?
Recent trends in school funding include an increase in state funding for education, a decrease in federal funding, and a growing reliance on local property taxes.