Total Expenditures Have Increased Since 1979-80

From 1979-80 to 1992-93, total real expenditures for public elementary and secondary education increased by 40 percent to $254.4 billion. In addition, the number of at-risk children in all categories has increased since 1980. The growth in these at-risk populations has increased the demand for specialized classroom services. Per Pupil Expenditures Have Recently Leveled Off

After decades of increase (with one plateau in the late 1970s), per pupil expenditures for elementary and secondary education leveled off beginning in 1989-90, increasing less than 1 percent, on average, each year until 1992-93 (see app. For the nation, the average total per pupil expenditure for 1992-93, using fall enrollment as a measure, was $5,296, although per pupil expenditures vary throughout the United States. 2). State, local, and federal shares for education spending vary by state. Elementary and Secondary Education’s Share of State Budgets Decreased

Between fiscal years 1987 and 1994, the relative share of elementary and secondary education spending in state budgets decreased by 11 percent. 3). VI.1 and VI.2.) VI.3 and VI.4.) Conclusions

Recent trends in U.S. education finance reveal the leveling off of per pupil spending for education combined with increasing enrollment in public elementary and secondary schools. The Advisory Commission on Intergovernmental Relations (ACIR) defines ability to raise revenue similarly, “as the hypothetical ability of a state and its local governments to raise revenue to provide public services in the state relative to the need for those services.” We have also developed a measure of ability to raise revenue that estimates a state’s ability to finance educational services, which we call ability to raise revenue for education. We also determined changes over time in our two measures of willingness to raise revenue, for education and overall.
Why GAO Did This Study

Pursuant to a congressional request, GAO examined the current status and trends in public education spending, focusing on: (1) the current expenditure levels for education and how they have changed over time; (2) the roles local, state, and federal governments play in financing education in the United States, and how these roles have changed over time; and (3) how the states differ in their capacity to provide resources for education and their relative tax effort.

What GAO Found

GAO found that: (1) since 1980, total real expenditures in public elementary and secondary schools have increased, while the average national per pupil expenditure increased then stabilized after 1989; (2) total public expenditures for elementary and secondary education increased by 40 percent to $254.4 billion from the 1979-1980 school year to the 1992-1993 school year; (3) the number of poor children attending elementary and secondary schools has increased, and the cost of educating these and other at-risk children is higher than educating those not at risk; (4) the average per pupil expenditure for elementary and secondary students has leveled off after years of increase; (5) the average per pupil expenditure in school year 1992-1993 was $5,296; (6) the portion of state budgets designated for elementary and secondary education decreased between fiscal years 1987 and 1994; (7) states' ability to raise revenues for education grew more slowly than their willingness to raise revenues for overall spending; and (8) state and local governments feel more pressure to increase education spending in less wealthy school districts.