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…

Adequacy of funding for public institutions of higher education in the United States is significantly important to an array of stakeholders, including, state legislative bodies, decision-makers in the arena of higher education, and notably, consumers of higher education. State allocation of resources for higher education demonstrates variability,…

State funding formulas shape how much money school districts have to spend, but districts usually have considerable discretion with how they distribute funds to schools. Because of this discretion, even if districts receive funds through a highly equitable state system, there is no guarantee that districts will distribute funding equitably to…

State budgets temporarily crashed amid the COVID-19 pandemic and economic shutdown, placing education funding at risk. To demonstrate implications for school finance, we show that (1) school districts are racially segregated along class lines; (2) higher-poverty districts receive a greater share of funds from state, as opposed to local sources,…

In recent years a number of colleges and universities have explored alternative strategies for developing operating budgets. In part this exploration was driven by the desire for transparency among various constituent groups and the need to tie budgeting to campus strategic planning. With the advent of declining federal and state support, along…

Prior empirical analyses on federal education tax credits have concentrated on the individual and institutional unit of analysis. These outcomes indicate mostly null effects on promoting college enrollments, along with distribution to higher incomes, and mixed results on tuition and fee increases. This analysis utilized institutional and state…

Because of the pandemic, many states will likely need to determine how they can best address shrinking revenues with the least harm to students, even as the needs of students have increased and the crisis has exposed gaping disparities. ExcelinEd, in partnership with a diverse group of organizations--the Aspen Institute, the District Management…

In the wake of public-health stay-at-home orders prompted by the coronavirus, the United States faces a nearly inevitable economic recession in the coming months. With a slowing economy will come a contraction in state revenues, including funding for public education. States are beginning to make budget-cutting calculations and are bracing for the…

Many state funding programs are intended to reach directly to students, but in reality funds must go through school districts, which have considerable freedom in how they allocate resources. As such, states have a strong interest in ensuring that districts invest in strategies that are backed by evidence and create opportunity for all students.…

Illinois State Board of Education (ISBE) invited 10 districts to participate in a community of practice designed to increase understanding of how to braid and blend federal funds. District teams composed of principals, superintendents, business managers, and other district leaders participated in four 90-minute virtual sessions. The purpose of…

The funding of public elementary and secondary schools in the United States involves a combination of local, state, and federal government revenues. State and local governments generally provide over 90% of the revenue available for public elementary and secondary education on an annual basis, with the federal government providing the remainder.…

The COVID-19 pandemic has disrupted the global and U.S. economy more profoundly than any other event since World War II. Just as the subprime mortgage crisis ushered in an 18-month economic decline and an ensuing state budget crisis, the current economic slide threatens to leave us in an even larger fiscal hole. Since COVID-19 hit, millions of…

A skilled workforce is one essential component of a prosperous and inclusive state economy. Attaining a degree or other post-secondary credential has obvious benefits to graduates and their families. Higher education insulates against unemployment and can be a pathway out of the low-wage economy. Funding for higher education is correlated with…

While funding cuts are often necessary during economic downturns, reducing state investments in higher education will hamper recovery. If cuts are inevitable, a one-size-fits-all approach will undermine states' ability to meet future talent needs and ensure equitable opportunity. State leaders should evaluate funding decisions based on their…

The Great Recession led to marked declines in state revenue. In this paper we investigate whether (and how) local school districts modified their funding and taxing decisions in response to state aid declines in the post-recession period. Our results reveal school districts responded to state aid cuts in the post-recession period by countering…