School Funding Per Student Per Day: An In-Depth Analysis
Funding public education is a multifaceted issue, essential for the success of students and the future vitality of any state or nation. This article delves into the complexities of school funding, specifically focusing on per-student expenditures and providing a comprehensive overview of the current landscape.
The Landscape of Public Education
The public education system comprises millions of students, hundreds of thousands of teachers, and a vast network of support staff and administrators. Thoughtful planning and adequate funding are paramount to ensure that this system effectively serves every student. Education spending encompasses various expenses, including teacher and administrator salaries, supplies, building maintenance, and extracurricular activities. Educational funding, on the other hand, refers to the revenue allocated to schools.
Texas: A Case Study
The Texas public education system, the second largest in the United States, serves as a compelling case study. The state's diverse educational needs, coupled with a complex funding model, highlight the challenges and opportunities in ensuring equitable and adequate resources for all students.
The Texas Funding Model
Texas employs an equalized system, where the state supplements local funding when a school district's property tax revenue falls short of the legislature-set per-student funding amount. The primary funding sources are local property taxes and state funds, derived from sales taxes, business taxes, and lottery proceeds. The Texas Legislature determines the per-student funding amount, known as the basic allotment, which has been $6,160 since 2019. This basic allotment serves as the building block for funding teachers, school operations, and everything else that goes on within a campus and a school district.
Additional funding is allocated based on student demographics, such as special education needs, eligibility for free or reduced-price lunch, and participation in bilingual programs. District characteristics, like size, also influence funding levels. Local school districts supplement their budgets through local property taxes, known as the M&O tax, and can seek voter approval for an I&S tax to fund new facilities and renovations.
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The state's contribution is inversely related to local property tax revenues. Districts with higher property values receive less state funding, while those with smaller property tax bases receive greater state support. On average, a Texas school district receives approximately $10,000 per student per year for day-to-day operations.
The Recapture System
In Texas, when local property values and tax collections increase, local schools do not necessarily receive more funding. If a school district raises more money via local property taxes than the state allotted for public education, the state collects those overflowing funds in an account that holds general revenues for the state. Every legislative session, the state saves billions from local home and business property value growth.
Texas Compared to the Nation
Despite a thriving economy and population growth, Texas ranks in the bottom 10 states nationally for state spending on education, trailing the national average by over $4,400 per student. Several states invest significantly more per student than Texas, including Alabama, Louisiana, Michigan, and New York. Even California, with a larger public school system, spends more per student.
Allocation of Resources
Over half of every dollar allocated to Texas schools covers instruction and teacher salaries. Two-thirds of every dollar is used for instruction and keeping campuses clean and updated. The remaining third is allocated across various areas, including campus leadership, student meals, instructional support, counseling, district leadership, transportation, extracurricular activities, IT, safety, and healthcare.
Challenges and the Need for Increased Funding
The rising cost of operating public schools and educating Texas children poses a significant challenge. The current funding system does not account for inflation, effectively reducing the purchasing power of school districts. The basic allotment has lost considerable value since 2019 due to inflation. This lack of adequate funding can hinder the ability to retain high-quality teachers, maintain safe and efficient campuses, and preserve essential programs.
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During the 88th Legislative Session in 2023, the Texas Legislature did not act or fund our schools, and school districts are now digging into their savings accounts as they face new challenges in funding new school safety mandates and demands from the STAAR test.
Federal Funding
Federal sources account for a portion of public school funding. During the 2021-22 school year, Texas schools received a higher share of funding from federal sources compared with the US average. In all, public schools in Texas received billions in federal funds, averaging thousands per student. Most federal public school funds are allocated based on formulas based on factors such as poverty status or a district’s rural location.
National Trends in School Funding
Average current expenditures per pupil enrolled in the fall in public elementary and secondary schools increased by 13 percent from 2010-11 to 2020-21, after adjusting for inflation. The object of the majority of current expenditures for education was salaries. From 2010-11 to 2020-21, the percentage of current expenditures spent on staff salaries decreased. In contrast, the percentage of current expenditures spent on employee benefits increased during this period. Altogether, salaries and benefits combined accounted for a significant percentage of current expenditures throughout the decade.
The Debate Over Funding Levels
Republican leaders claim that public education funding in Texas is at an all-time high, citing figures that include federal pandemic relief funds and money that districts cannot spend. However, public education advocates argue that these figures are misleading, as they do not account for inflation or the changing shares of federal, state, and local funding. School officials point to budget deficits, school closures, and staffing challenges as evidence of inadequate state investment.
The Impact of Funding Levels on School Districts
Many Texas school districts have adopted budget deficits, spending money faster than they receive it. Campus officials are closing schools, cutting positions, eliminating programs, increasing class sizes, and hiring less qualified teachers due to stagnant funding. While some attribute these struggles to mismanagement, school leaders emphasize the need for flexibility in addressing campus needs, particularly in light of rising costs for salaries, utilities, and other essential services.
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