Title: How Schools Spend Their Money - Education Next
Headings: How Schools Spend Their Money
How Schools Spend Their Money
Jay P. Greene
Jay P. Greene
Author Bio

Content: Education leaders say they want to devote greater funding to low-income students, but within most school districts per-pupil spending is higher at schools with more-advantaged students. Education leaders say they want to focus resources on the core subjects of math, reading, history, and science, but per-pupil spending tends to be much higher for electives, extracurricular activities, and sports. Education leaders say they want to emphasize remedial instruction to help lagging students catch up, but in most school districts per-pupil spending is significantly greater for Advanced Placement (AP) and gifted classes than for remedial ones. The chief culprit in this misallocation of resources relative to stated priorities is the uniform salary schedule for teachers. In virtually every public school throughout the country, teachers are paid primarily according to their credentials, seniority, and “additional” work assignments and not at all according to subject taught, number of students served, or the difficulty or importance of their assignments. The net effect of this arrangement is that labor costs, the bulk of per-pupil spending, are distributed by formulas that are completely unaligned with stated priorities. Schools with more low-income students tend to receive less per-pupil spending within districts because the higher-paid teachers with greater experience often transfer to schools with more-advantaged students who are less difficult to educate. Non-core electives, like art, music, gym, and shop, receive higher per-pupil spending because they tend to have fewer students per class than required core subjects, like reading, math, history, and science. Since all teachers are paid the same regardless of the subject they teach, smaller classes necessarily translate into higher per-pupil spending. Extracurricular activities and sports receive higher per-pupil funding because fewer students participate and teachers receive extra pay for assuming these “additional” assignments.