Tighter Link Sought Between Spending, Achievement in N.Y.

As states look for ways to hold school districts accountable for how they use big increases in K-12 funding, New York’s experience may offer a test case in directing the flow of that new money.

Under the state’s ambitious “Contracts for Excellence” program, 55 of New York’s 705 districts will share $430 million in extra aid this school year, but are required to file detailed plans that limit the spending to five strategies intended to raise student achievement.

The early signs are that districts are complying with the new rules. According to a review by Education Week of contracts available as of last week—representing some three-quarters of the new funding—about half the increase will be spent this year on reducing class size, one of...