View in your browser.

Welcome

Last year, one North Carolina school district lost nearly $985 a student.  Another district added over $825 a student.  Welcome to the weird and wacky world of education funding!

Bulletin Board

  • Learn. The John Locke Foundation and Carolina Journal provide unsurpassed research, analysis, reporting, and opinion on North Carolina’s most important and talked about issues.  Sign up for a Key Account to receive daily updates from our staff.
  • Attend. A list of upcoming events sponsored by the John Locke Foundation can be found at the bottom of this newsletter, as well as here.  We look forward to seeing you!
  • Share. The North Carolina History Project seeks contributors to the North Carolina History Project Encyclopedia. Please contact Dr. Troy Kickler for additional information.
  • Discuss. I would like to invite all readers to submit brief announcements, personal insights, anecdotes, concerns, and observations about the state of education in North Carolina.  I may publish selected submissions in future editions of the newsletter. Requests for anonymity will be honored. For additional information or to send a submission, email Terry at [email protected].
  • Revisit. We have archived all research newsletters on our website.  Access the archive here.
  • Donate. If you find this newsletter mildly informative or entertaining, please consider making a tax-deductible contribution to the John Locke Foundation.  The John Locke Foundation is a 501(c)3 not-for-profit organization that does not accept nor seek government funding. It relies solely on the generous support of individuals, corporations, small businesses, and foundations.

CommenTerry

What better way to begin 2015 than to discuss per-pupil expenditures for our K-12 public schools?

According to the N.C. Department of Public Instruction, the state increased its average expenditure by around $200 a student for the 2014-2015 school year.  At this time next year we will be able to assess changes to local and federal funding for the current year.  Until then, it may be worthwhile to examine spending trends through 2013-2014.

In terms of per-student operating expenditures, state sources provide the highest percentage of funds. Nearly 64 percent came from state sources last year, which is one of the highest shares from state sources in the nation.  Local governments contributed another 25 percent of per-student funding.  The federal government share approached 12 percent. 

Any number of factors may reduce or increase a district’s per-student expenditure. Obviously, state, federal, and local appropriations are key, but changes in student demographics or population also play an important role.  State and federal budgets, in particular, have formulas that direct funds to low-income, special needs, and other targeted populations.  Moreover, changes in the numbers of students enrolled may reconfigure the distribution of funds across districts.  As such, it is disingenuous (and far too common) to credit or blame one funding source or one demographic factor for any funding changes.  It is best to consider the changes on a case-by-case basis.

For example, while North Carolina’s student population has grown, federal funding has not.  Between 2011-2012 and 2013-2014, federal K-12 education expenditures dropped by around $250 million.  As a result, approximately 70 percent of North Carolina school districts received less federal funding last year than they had in prior years.  Anson County Schools lost a staggering $605 per student in federal funding during the 2013-2014 school year.  On the other hand, Thomasville City Schools enjoyed a $472 per student boost in federal funds.  Both districts lost a small number of students and received nearly the same state appropriation from one year to the next.  One difference is that the cut to Anson’s local appropriation was small compared to Thomasville City’s.

Discussions of funding levels are necessary, but not sufficient, for truly understanding the health of our public school districts.  Researchers generally agree that how the money is spent is far more important than how much money is available to be spent.  Whether you call it "return on investment," "educational productivity," or "bang for the buck," an assessment of the relationship between educational inputs and outputs is an essential starting point for good K-12 education policy.

Facts and Stats

Per-pupil expenditure (PPE) and enrollment (ADM) changes, 2012-2014

Note: Per-pupil expenditure (PPE) includes state, federal, local, and capital (5-year average) expenditures as reported by the N.C. Department of Public Instruction in their Statistical Profile database.

Acronym of the Week 

PPE — per pupil expenditure

Quote of the Week 

"But as a nation, the United States cannot pretend that education dollars are endless, and we must address the issue of spending effectiveness. This is not an academic point, given lackluster education revenues."

– Ulrich Boser, "Return on Educational Investment, 2014: A District-by-District Evaluation of U.S. Educational Productivity," Center for American Progress, July 9, 2014.

Click here for the Education Update archive.

You can unsubscribe to this and all future e-mails from the John Locke Foundation by clicking the "Manage Subscriptions" button at the top of this newsletter.