Why do schools that preform better get more funding then schools that may use the money to help better educate students?
School funding is a blend of federal, state, and local dollars [1]. Local funding largely comes from property taxes [1]. Federal money tends to target low-income students or other distinct groups [1]. State funding is where things get complicated [1]. In all but five states, statewide formulas control most school funding [1]. State education funding formulas have been the subject of controversy, confusion, and lawsuits [1]. These formulas distribute revenue to districts based on a variety of factors [1]. They aim to account for state and district revenue and anticipated differences among districts [1]. However, they often cannot account for how districts might respond to different incentives [1]. As a result, districts that can raise more from local sources may get more state funding [2].
Funding for public schools comes from three arms of the government: federal, state, and local, according to the Center for American Progress. [3] Of these funds, 47% comes from the state, 45% comes from local governments, and the rest comes from the federal government. [3] This funding is reliant on income and property taxes, which poses a threat to poorer areas of the country and causes funding disparities. [2, 3] Because property tax rates differ by neighborhood, schools in wealthier areas with higher property tax bases receive more funding than those in poorer areas. [3]