In most states across the country, public K-12 enrollment is declining. This is a decade-long, national trend that accelerated with the onset of the COVID-19 pandemic and is projected to continue. Although enrollment decline varies substantially among and within states, many states have put temporary or permanent policies in place to address the…

The distribution of state funding to school districts has a tremendous impact on student learning opportunities. State leaders juggle different priorities, tradeoffs and incentives when designing funding formulas with the goal of ensuring every student has the learning opportunities to succeed. This toolkit offers a strategic guide for reforming…

Through its "Master Plan for Kids' Mental Health," California has invested $4.7 billion in youth mental and behavioral health since the start of the COVID-19 pandemic. Expanding behavioral health services on school campuses has been a powerful way to ensure equitable access to this support. However, most of the state's new behavioral…

The School Funding Reform Act (SFRA), New Jersey's school finance law, requires the Governor, in consultation with the Commissioner of Education, to review certain components of the school funding formula every three years. The New Jersey Department of Education (NJDOE) issued four Educational Adequacy Reports (EAR) between 2013 and 2022, but none…

Over the past four years, Florida has seen tremendous growth in the amount of public funds being spent on private education. This report finds that in 2022-23, an estimated $1.3 billion in funding will be redirected from public school districts to private education, representing 10% of state K-12 education funds allocated through the Florida…

A.C.A. §6-61-234 (Act 148 of 2017) directs the Arkansas Higher Education Coordinating Board (AHECB) to adopt polices developed by the Arkansas Division of Higher Education (ADHE) necessary to implement a productivity-based funding model for state-supported institutions of higher education. At its October 27, 2017 meeting, the AHECB approved the…

The majority of states with a weighted, student-based K-12 funding formula include weights that allocate additional funding based on the enrollment of students in poverty, students with special education needs, and English learners (ELs). Research shows that all three of these student groups need additional support and resources to succeed. Many…

This chapter describes a comprehensive set of best practices for the evaluation of state formula funding models and state higher education funding in general, based on existing practices within the United States. It represents a review of practices that lead to stakeholder engagement as an objective, collaborative process.

All states have a formula that determines how state funding is distributed to school districts. Most state formulas anticipate or require that school districts raise some funds locally and adjust state allocations based on that anticipated local share of school funding. In theory, state funding formulas attempt to provide school districts with the…

Nearly every state has flaws in how it funds public education, particularly when it comes to equitable funding for historically underserved students. While challenges vary by state, there are five common pitfalls in education finance equity: (1) Formulas do not fully account for differences in student learning needs; (2) There are too many school…

The Trump administration may push for a shift away from the current formula-driven federal K-12 education funding toward more flexible block grants -- part of a broader effort to significantly scale back the U.S. Department of Education and direct more education policy decision-making to the states. If Congress authorizes this new flexibility,…

Performance budgeting strategies have failed to realize the aspirations of their advocates for nearly 50 years. Performance budgeting underperforms because it is too simple a solution for complex problems. It overestimates the power of monetary incentives. Where improved performance can be easily achieved, it spends money where it is not needed.…

A.C.A. §6-61-234 (Act 148 of 2017) directs the Arkansas Higher Education Coordinating Board (AHECB) to adopt polices developed by the Arkansas Division of Higher Education (ADHE) necessary to implement a productivity-based funding model for state-supported institutions of higher education. At its October 27, 2017 meeting, the AHECB approved the…

As discussed in "Splitting the Bill: How Are State Education Funding Formulas Structured?," state school funding formulas generally fit one of three structures -- student-based, resource-based, or program-based. The cornerstone of a student-based funding formula is the per-student base amount (also appropriately called the…

English learners (ELs) are one of the fastest-growing student groups in the U.S. K-12 system, making up about one in 10 students enrolled in public schools nationwide. Despite research showing that EL students need more resources and supports to be successful in school, funding at the federal, state, and local levels to provide those additional…