Special Report
Education Funding Infographic

Data: Breaking Down the Where and Why of K-12 Spending

September 24, 2019 3 min read
  • Save to favorites
  • Print

America’s public school system today costs taxpayers over two-and-a-half times more that it did half a century ago—far outstripping changes in enrollment over that time. When federal, state, and local spending is taken together, it stands as one of government’s most-expensive endeavors.

There’s not just one culprit. That increase reflects an array of policy and priority shifts, changes in student demographics, state and federal mandates, built-in cost drivers affecting the workforce, and factors stemming from the economy at large.

Many will argue it’s still not enough, and that the money we are spending is not being distributed in a fair or effective way. Others make the case that massive governmental investment has failed to yield what it should have when weighed against student achievement.

It’s clear, however, that K-12 advocates, politicians, the courts, and others over the years have raised expectations of what schools should provide and to whom, and that it takes money to meet those demands. Here are some significant milestones.

How much does America spend on its public school system?

BRIC ARCHIVE

What are some policy, economic, and legal milestones for school spending and finance in the past half century?

1965 | President Lyndon B. Johnson signs the Elementary and Secondary Education Act, significantly expanding the federal role in K-12 education, with its signature program—Title I— aimed at helping districts cover the cost of educating disadvantaged students.

1973 | The U.S. Supreme Court rules in San Antonio ISD v. Rodriguez that the federal government is not constitutionally mandated to fund schools equitably.

1975 | Congress passes the Education for All Handicapped Children Act, requiring schools to identify all children with disabilities and provide them with a free and appropriate public education. It set federal funding commitments that have yet to be met.

1976 | California’s supreme court rules in Serrano v. Priest that the state is constitutionally required to distribute money “equitably” between districts. It serves as a template for lawsuits in other states and dramatically alters the way schools are funded, namely the infusion of state tax dollars to equalize spending distribution.

1982 | The U.S. Supreme Court rules in Plyler v. Doe that a state may not deny access to a basic public education to any child regardless of whether that child is in the country legally or not.

1983 | President Ronald Reagan’s National Commission on Excellence in Education releases “A Nation at Risk,” a report that deems America’s school system as failing and sets off reform efforts to improve academic outcomes.

1985 | New Jersey’s supreme court rules in Abbott v. Burke that the state is obligated to provide an “adequate” education for students to meet basic standards, prescribing how the state should fund schools in 31 school districts. It is one of the first in a series of state “adequacy” lawsuits that seek to dramatically increase the amount of money states spend on schools.

1989 | The nation’s governors commit during a national summit in Charlottesville, Va., to setting national education goals, upping the pressure for aggressive school reform efforts.

1994 | President Bill Clinton signs “Goals 2000,” which provides grants to states to create comprehensive reform plans to improve their schools.

2002 | President George W. Bush signs the No Child Left Behind Act, which, among other things, tasks the U.S. Department of Education to hold states accountable to a set of math and reading goals.

2007 | The Great Recession begins, leading to a tumble in income, sales, and property tax revenue for federal, state, and local governments, all of which school districts are heavily dependent on. More than 300,000 school personnel, mostly teachers, lose their jobs as a result.

2009 | President Barack Obama signs the American Recovery and Reinvestment Act, which sets aside $100 billion for schools including money to stabilize school budgets and funds for initiatives like Race to the Top.

2015 | President Barack Obama signs the Every Student Succeeds Act, which gives states additional flexibility over education policy, and requires that districts report school-by-school spending figures for the first time.

2018 | West Virginia teachers stage a first of a series of statewide strikes over stagnant pay, decrepit schools, and a massive teacher shortage, the first in a series of strikes across the country.


So, what is driving the costs?

  1. Enrollment

    BRIC ARCHIVE
    BRIC ARCHIVE

  2. Demographics

    BRIC ARCHIVE

  3. Operational Costs

    BRIC ARCHIVE
    BRIC ARCHIVE

  4. Staffing

    BRIC ARCHIVE
    BRIC ARCHIVE

  5. Benefits
BRIC ARCHIVE

Who pays?

BRIC ARCHIVE

A version of this article appeared in the September 25, 2019 edition of Education Week as Breaking Down the Where & Why of K-12 Spending

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Webinar
Improve Reading Comprehension: Three Tools for Working Memory Challenges
Discover three working memory workarounds to help your students improve reading comprehension and empower them on their reading journey.
Content provided by Solution Tree
Recruitment & Retention Webinar EdRecruiter 2026 Survey Results: How School Districts are Finding and Keeping Talent
Discover the latest K-12 hiring trends from EdWeek’s nationwide survey of job seekers and district HR professionals.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Professional Development Webinar
Recalibrating PLCs for Student Growth in the New Year
Get advice from K-12 leaders on resetting your PLCs for spring by utilizing winter assessment data and aligning PLC work with MTSS cycles.
Content provided by Otus

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Education Week's 2025 Word of the Year Is ...
Trump's efforts to reshape the federal role in education caused uncertainty for schools.
6 min read
2 silhouetted figures dismantle the Department of Education Seal and carry away the parts.
Vanessa Solis/Education Week + DigitalVision Vectors/Getty
Education Funding Congress Revived a Fund for Rural Schools. Their Struggles Aren't Over
Federal funds will again flow to districts with national forest land—but broader funding uncertainties remain.
6 min read
Country school; Iowa.
iStock/Getty
Education Funding Amid Cancellations and Legal Fights, Trump Admin. Awards New Mental Health Grants
The grants came from a competition the Ed. Dept. redesigned to erase Biden administration priorities.
3 min read
Image of hands taking care of a student with a money symbol in the background.
Getty and Education Week
Education Funding A Guide to Where School Mental Health Grants Stand After a New Legal Twist
Temporary relief for one set of projects raises questions for other initiatives vying for federal money.
5 min read
A student visits a sensory room at a Topeka, KS elementary school, on Nov. 3, 2021.
A student visits a sensory room at an elementary school in Topeka, Kan., on Nov. 3, 2021. Schools have expanded their student mental health services in recent years, many with support from hundreds of millions of dollars in federal grants that the Trump administration pulled earlier this year and have since been caught up in legal proceedings.
Charlie Riedel/AP