Education Funding

N.C. Spending Gap Continues To Widen, Study Finds

By Kerry A. White — November 06, 1996 3 min read
  • Save to favorites
  • Print

The gulf between North Carolina’s richest and poorest school districts is widening despite an effort by the legislature to close the gap, a recent study of local school finance says.

The difference between what wealthy and poor counties spend on their students has risen to more than $1,000, according to the report by the Public School Forum in Raleigh. Looking solely at local funds, the 10 wealthiest counties spend $1,441 per student and the bottom 10 spend $431 this year, the study found.

A special fund for small and poor school systems enacted by the legislature in 1991 has generated $41 million to narrow disparities, but once the state help is portioned out, it amounts to only $37 more per student a year for poor districts, the report says.

“The gap continues to widen year after year,” said John Dornan, the executive director of the forum, a statewide citizens’ group. “Poorer counties are having to tax themselves at a rate that would lead to rebellion in wealthier counties.” But they still don’t reach the revenue levels of affluent counties.

Poorer counties have smaller tax bases from which to draw property-tax revenue. To meet school budgets, residents often have to pay at a substantially higher tax rate than in well-to-do districts, but the poor districts still raise less money.

The report found that 70 of the state’s 100 counties fall below the state average for adjusted property-tax wealth per student. Moreover, in the 10 richest counties, the amount of taxable property wealth per student rose by more than $15,000 last year, to $554,349. The same figure for the 10 poorest counties dropped $714 per student last year, to $152,424.

The list of North Carolina’s wealthiest counties includes major cities and retirement communities, while its poorest counties are heavily dominated by rural towns in the eastern part of the state and mountain communities to the west.

Inequities play out in all facets of education, Mr. Dornan said. Poor districts have dire facilities needs and often offer only a bare-bones curriculum without advanced math and science courses, up-to-date technology, and foreign language programs.

“The differences are stark,” he said.

Constitutional Challenge

The findings come on the eve of a long-awaited decision from the state supreme court over whether a lawsuit challenging the state’s finance system will go to trial.

The suit--brought by five poor counties in May 1994--seeks to throw out a system that the plaintiffs contend shortchanges students and does not provide the “general and uniform system of free public schools” promised in the state constitution.

“The people have a right to the privilege of education,” the North Carolina Constitution says, “and it is the duty of the state to guard and maintain that right.”

Soon after filing the lawsuit, the plaintiffs were joined by a coalition of the state’s largest school systems, which contend that the finance system is as unfair for large, urban districts as it is for poorer, rural ones.

Similar lawsuits and subsequent court rulings in other states have forced lawmakers from New Jersey to Montana to overhaul their school finance systems.

State school officials concede that funding disparities in North Carolina do exist, but say that in recent years state agencies have been moving to address the needs of poorer counties.

“We’re all pushing for more resources” for needy schools, said Philip Price, the assistant director for school business for the North Carolina education department. He said the state’s finance system is unlike those of other states. Because 70 percent of overall school funds come from the state, the deviation from rich to poor districts is smaller than in other states.

The system, Mr. Price said, “has changed a lot since the lawsuit was filed in 1991. It’s almost not comparable to when we started.”

A $1.8 billion school facilities bond on this week’s state ballot would distribute facilities money partly based on wealth--another step toward equity, backers said.

A version of this article appeared in the November 06, 1996 edition of Education Week as N.C. Spending Gap Continues To Widen, Study Finds

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
College & Workforce Readiness Webinar
Building for the Future: Igniting Middle Schoolers’ Interest in Skilled Trades & Future-Ready Skills
Ignite middle schoolers’ interest in skilled trades with hands-on learning and real-world projects that build future-ready skills.
Content provided by Project Lead The Way
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
Artificial Intelligence Webinar
AI in Schools: What 1,000 Districts Reveal About Readiness and Risk
Move beyond “ban vs. embrace” with real-world AI data and practical guidance for a balanced, responsible district policy.
Content provided by Securly
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
Recruitment & Retention Webinar
K-12 Lens 2026: What New Staffing Data Reveals About District Operations
Explore national survey findings and hear how districts are navigating staffing changes that affect daily operations, workload, and planning.
Content provided by Frontline Education

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 School Mental Health Projects Get 3-Month Reprieve as Court Rules Against Trump
The projects to expand school-based services have faced nearly a year of funding uncertainty and legal limbo.
5 min read
A student adds a note to others expressing support and sharing coping strategies, as members of the Miami Arts Studio mental health club raise awareness on World Mental Health Day, Tuesday, Oct. 10, 2023, at Miami Arts Studio, a public 6th-12th grade magnet school, in Miami.
A student adds a note expressing support and sharing coping strategies during a World Mental Health Day activity on Oct. 10, 2023, at Miami Arts Studio, a magnet school in Miami. Most recipients of two federal school mental health services grants the Trump administration has attempted to cancel over the past year will see their funding continue at least through June 1.
Rebecca Blackwell/AP
Education Funding Some Halted Federal Funds for Community Schools Will Flow, But More Remain Frozen
Schools in Illinois will regain access to some federal grant funds, but programs nationwide continue to struggle.
5 min read
Image of money symbol, books, gavel, and scale of justice.
DigitalVision Vectors
Education Funding The Trump Admin. Says It Supports Career-Tech. Ed. It Canceled CTE Grants Anyway
Nineteen projects—many in rural areas—lost funding that was helping students prepare for college and careers.
12 min read
As part of the program, the Business students at Donald M. Payne Sr. Tech Campus in Newark, NJ on Feb. 26, 2026m have access to computers with subscriptions to the latest software to help them prepare for the workforce.
Business students at the Donald M. Payne Sr. School of Technology in Newark, N.J., work in a computer lab on Feb. 25, 2026. A U.S. Department of Education grant was helping students in business and other fields at the school access enrichment programming, college courses, and financial support after graduation. But the department terminated the grant, along with 18 other similar awards across the country, last summer.
Oliver Farshi for Education Week
Education Funding Educators Warn Flat English Learner Funding Falls Short of Growing Demand
Educators remain uncertain about the future of federal funds for English learners.
3 min read
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025.
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025. While educators feel relieved that federal dollars for supplemental English-learner resources will continue in the next fiscal year, they remain uncertain for the years to come.
Noah Devereaux for Education Week