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Education spending

Will Rogers said, "Lord, the money we do spend on Government and it's not one bit better than the government we got for one-third the money twenty years ago." Such is the case especially for the money we spend on public education. Despite billion-dollar increases, it has become clear that more money alone will not yield better results.

Key Facts

• Between 1965 and 2009, there has been a 273 percent increase in state real per-pupil expenditures, a 446 percent increase in federal real per-pupil expenditures, a 521 percent increase in local real per-pupil expenditures, and a 329 percent increase in total real per-pupil expenditures.
• State public school funding has increased by 28 percent, from $5.74 billion in 2001 to $7.35 billion in 2010. From 2001 to 2009, student enrollment in North Carolina public schools increased nearly 13.7 percent.
• Local public school funding posted a 49 percent increase, adding an additional $981 million to the state's public schools since 2001.
• Federal funding to North Carolina public schools has nearly doubled, thanks to significant increases in No Child Left Behind funding (increased $270.9 million since 2001) and in special education (IDEA) funding (increased $124.2 million since 2001).
• In 2008, the federal government allotted $944 million in ARRA (American Recovery & Reinvestment Act) or "stimulus" funds to North Carolina public schools.
• There has been a $3.9 billion increase in state, local, and federal public school spending since 2001.
• Much of the money spent on public education in North Carolina pays for employee salaries and benefits. For the 2008-09 school year, the state spent nearly 91 percent of funds appropriated for public education on salary and benefits.
• Since 1992-93, teacher pay has increased 119.2%, compared with a 52.5% increase for state employees and a 58.6% increase in the Consumer Price Index.
• For the 2008-09 school year, average teacher compensation was $54,786 (including base salary, Social Security, retirement, and hospitalization, but not supplemental pay).
• For the 2008-09 school year, average principal compensation was $83,721 (including base salary, Social Security, retirement, and hospitalization, but not supplemental pay).
• For the 2008-09 school year, average assistant principal compensation was $63,061 (including base salary, Social Security, retirement, and hospitalization, but not supplemental pay).
• The state has contributed over $2 billion for capital expenditures since 1995. School districts, which are responsible for financing their own capital programs, have spent over $11 billion during the same period. Taking into account all sources of revenue, school districts have spent nearly $13.2 billion for school capital expenditures since 1995.
• Control over public education in the state is highly centralized. In North Carolina, 64.3 percent of the funds come from the state, compared with the national average of 47.1 percent. Local funds make up 25.5 percent, and federal funds comprise 10.3 percent.

Recommendations

1. Change the way that North Carolina funds public education by attaching funding to the student. The state should discontinue the confusing practice of allocating funds to each school district using various funding formulas. Coupled with open enrollment for schools statewide, student-centered funding would ensure that schools of the parents' choosing receive funds necessary to educate each child and nothing more.
2. Reallocate lottery revenue to provide additional funding to high-growth school districts for school construction and renovation and for cost saving incentives related to capital expenditures. Lottery revenue should also be distributed to charter schools, which do not receive funds for capital expenditures.
3. Implement a merit pay system for teachers that will pay a portion of their salary based on the value that they add to their students' academic performance. North Carolina's salary scale is based on years of experience and credentials, neither of which are sound indicators of teacher quality.