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: 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. Per-pupil spending on AP and gifted classes exceeds remedial classes because, again, fewer students tend to be in those advanced classes. “How can those inside and outside the system allow such blatantly contradictory spending patterns to persist in their own schools?” Roza asks. Her first explanation is ignorance: “ They generally do not know these patterns exist, as district budgeting and accounting practices make it incredibly difficult to identify detailed spending patterns.”