State education finance systems play a fundamental role in providing the resources that schools and districts need to ensure student success. But modernizing and improving these systems is often complicated and can take years. Learning from their efforts to revamp education finance systems, Bellwether has found five common conditions that pave the…

Background: The Every Student Succeeds Act (ESSA; 2015) constituted a reauthorization of the 1965 Elementary and Secondary Education Act (ESEA) and replaced the No Child Left Behind Act (NCLB) of 2001. ESSA, although still recognizing the need of standardized testing, diverged from NCLB by transferring a significant amount of power over…

In an effort to reduce state spending on special education in public schools, New Jersey moved to census-based funding as part of the new school funding formula, the School Funding Reform Act (SFRA), adopted in 2008. The census approach funds all districts using the statewide average classification rate and a statewide average "excess…

State funding for public higher education institutions is crucial in supporting college access and completion, particularly among students from historically under-represented groups, yet little is known about the mechanisms that states use to allocate funds and how they are affected by financial challenges. This article provides the first detailed…

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…

The New York State Board of Regents' 2004-05 State Aid Proposal put forward the idea of instituting Foundation Aid as a response to concerns about the sufficiency of state education funding then being provided to local school districts. In 2007, prompted by legal action, a call for reform by the Regents, and the election of a new governor with a…

Public Higher Education (PHE) reflects a drastic reduction in funding to subsidize its day-to-day functioning, increasing dependence on tuition fees to be operational, the existence of outdated government funding policies, and the lack of a sustainable funding mechanism. Notwithstanding, the plethora of research attempting to understand different…

In the United States, K-12 school finance is largely controlled by the states. Every year, hundreds of billions of dollars in public funds are distributed based on 51 different configurations of formulas, rules, and regulations to over 13,000 districts that vary in terms of the students they serve, their ability to raise revenue locally, and many…

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…

The Elementary and Secondary Education Act (ESEA), most recently comprehensively amended by the Every Student Succeeds Act (ESSA; P.L. 114-95), is the primary source of federal aid to support elementary and secondary education. The Title I-A program is the largest grant program authorized under the ESEA and was funded at $17.5 billion for FY2022.…

This paper studies how school spending impacts student achievement by exploiting the US interstate branching deregulation as state tax revenue shocks. Leveraging school finance data from universal school districts, our difference-in-differences estimation reveals that deregulation leads to an increase in per-pupil total revenue and expenditure.…

Understanding how urban school districts allocate their education funds can help school leaders create more effective budgeting strategies and provide a basis for advocating for additional funding when necessary. This report provides an overview of how urban districts distribute their financial resources, highlights key areas of spending, and…

This paper asks whether increasing public school funding can be an effective long-run crime-prevention strategy in the U.S. Specifically, we examine the effect of increases in funding early in children's lives on the likelihood that they are arrested as adults. We exploit quasi-experimental variation in public school funding, leveraging two…

At their best, K-12 public school systems can be engines of social and economic mobility. Unfortunately, schools in lower-income districts -- whose students have the greatest academic needs -- often receive less funding than their counterparts in more affluent districts. Discussions about closing these funding gaps usually zoom all the way out to…

The federal Individuals with Disabilities Education Act (IDEA) entitles students with disabilities to a free appropriate public education. Students with disabilities often require additional support to enable them to achieve academic and functional goals relative to their nondisabled peers. These legally protected supports and services all add up…