California state-level policies are responsible for allocating nearly 80 percent of the revenue received by its K-12 school districts. In 2013-14, the state implemented the Local Control Funding Formula (LCFF), which changed the allocation formula from one based primarily on equal revenue per pupil to an equity-focused allocation based primarily…

This non-regulatory guidance discusses provisions that govern within-district allocations under Title I, Part A (Title I) of the Elementary and Secondary Education Act of 1965 (ESEA), as amended by the Every Student Succeeds Act (ESSA), and accompanying regulations in 34 C.F.R. §§ 200.64, 200.77, and 200.78. It first addresses required and…

A well-intentioned bipartisan coalition came together in the late 20th century to spur improvement of the K-12 education system through test-based accountability and public school choice. The ability of this coalition to institute and maintain meaningful "accountability" proved extremely limited. State accountability systems morphed into…

In the 21st century, education has become America's most significant marker of class privilege. People with bachelor's and advanced degrees have mostly prospered, while wages for those with less education have fallen. This divergence in economic fortunes lies at the heart of our country's present economic and political discontents. Federal and…

Education Law Center's "Making the Grade" is an annual overview of the condition of school finance in the states. Using the most recently available data from the 2021-2022 school year, the report ranks and grades each state on three measures to answer the key question: How fair is school funding in your state? The three fairness measures…

Young people need clear pathways to navigate from K-12 education into careers that align with their interests, strengths, and life goals. But they often lack the information, support, and access to choose and complete postsecondary pathways that are right for them. The federal government can play an important role in bridging this gap, by…

Understanding how the District of Columbia (DC) funds District of Columbia Public School (DCPS) students and DC public charter school students is essential to ensuring all students receive the support they need as COVID-19 pandemic-era federal funds expire. The recent rise in the Uniform Per Student Funding Formula (UPSFF) and the boost in the…

The formula used to allocate federal funding to states for special education is one of IDEA's most critical components. The formula serves as the primary mechanism for dividing available federal dollars among states and represents policy makers' intent to equalize educational opportunities for students with disabilities nationwide. In this study,…

Responsibility center management (RCM) is a market-based budget model that may benefit certain academic institutions. While there are supporters and opponents of the model, there is a lack of hard evidence about the potential impact of RCM on a variety of institutional variables, hence the need for this study. This study brought together the…

This paper analyzes the incentives induced by a formula to fund universities based primarily on enrolment. Using a simple game theoretical framework, we argue that the strategic behaviour induced by those formulas is to favour enrollment. We further argue that if the funding value differs by enrolment type, it introduces incentives to substitute…

Since 1978, the Education for All Handicapped Children's Act (now IDEA) committed Congress to provide 40 percent of the average per pupil spending to educate children with disabilities. While states have used a variety of special education funding formulas to attempt to meet the needs of children with disabilities, the funding has never approached…

Operating revenue for public higher education is derived from several sources, such as state appropriations, tuition, room and board, and contracts. State funding in particular constitutes a large share of revenue and is consequently critical for improving enrollment, completion, and labor market outcomes. However, states differ in how…

The method California uses to count students for funding purposes is an important decision that drives both resources and behaviors. For more than 100 years, California has funded school districts based on the average number of students who attend school each day. Although this average daily attendance (ADA) method was once used by many states,…

School finance formulas vary from state to state, impacting school district educational outcomes. Rural school districts are especially affected due to inherent challenges in producing high student achievement scores. This study examined whether variables including socioeconomic status and per-pupil local tax level impacted student achievement…

For the first time in U.S. history, a proposal for nationwide free community college passed through the House of Representatives in the fall of 2021. Although the provision was ultimately dropped from President Joe Biden's Build Back Better bill, its early presence suggests the political appeal of making college accessible to more Americans. These…