Education Funding

Quality Counts 2005 Examines Changes in School Finance

By Lynn Olson — January 04, 2005 2 min read
  • Save to favorites
  • Print

With 31 states considering major changes in how they pay for public education, the nation’s school finance systems are in transition, an Education Week report set for release this week concludes.

Quality Counts 2005: No Small Change, Targeting Money Toward Student Performance examines what the 50 states and the District of Columbia are doing to pay for public education and to focus those dollars more squarely on student achievement.

See Also

Quality Counts 2005 will be available online on Jan. 5, 2005. Subscribers will receive their copies of the report, dated Jan. 6, by mail.

The newspaper’s ninth annual state-by-state report card on public education also found that 37 states and the District of Columbia identified a lack of resources or unpredictable funding levels as the most pressing school finance issue, particularly given tight state budgets.

Historically, states have focused on how to distribute money equitably across districts, while paying far less attention to how those dollars are spent or the results they produce. Now that states have set ambitious performance goals for students—and the federal No Child Left Behind Act requires states to meet those targets in reading and mathematics by 2013-14—the push is on to link money to student performance.

“America’s system for financing education is at a crossroads,” said Virginia B. Edwards, the editor of Quality Counts 2005 and Education Week. “Increasingly, legislators want to know what their state education outlays are buying. They’re asking what it would actually cost to enable all students to meet state standards, and how to raise the revenues called for by those calculations.”

The report notes that only 22 states and the District of Columbia collect at least some school-level financial data, and the quality and use of those that data vary widely.

Focus on Adequacy

One of the most notable changes is in how policymakers talk about school finance, as legislatures and the courts shift their focus from questions of “equity” to “adequacy,” or what it would cost to meet the education goals spelled out in state constitutions.

The report, supported by the Philadelphia-based Pew Charitable Trusts, found that 30 states have had adequacy studies conducted; in six of those states, the studies were still under way late last fall. Fourteen states have conducted studies to determine the costs of meeting the NCLB requirements. In nine of those states, the studies were still under way in late 2004.

For Quality Counts 2005, Education Week commissioned Bruce D. Baker, a finance expert at the University of Kansas, to review adequacy studies across the states. The Education Week Research Center also conducted a detailed analysis of adequacy studies in three states—Kentucky, Maryland, and New York—to examine why experts arrived at such different cost estimates.

In addition, Education Week’s annual policy survey of the 50 states and the District of Columbia explored how states raise revenues for public education, distribute those dollars across districts, and track school-level expenditures. The report includes a finance snapshot for each state.

The report also updates Education Week’s annual report cards on education in the states and the District of Columbia. It grades states in four areas: standards and accountability, efforts to improve teacher quality, school climate, and the equity of resources.

A version of this article appeared in the January 05, 2005 edition of Education Week as Quality Counts 2005 Examines Changes in School Finance

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
Special Education Webinar
Hidden Costs of Special Ed Vacancies: Solutions for Your District
When provider vacancies hit, students feel it first. Hear what district leaders are doing to keep IEP-related services on track.
Content provided by Huddle Up
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
Privacy & Security Webinar
How Technology Is Reshaping Childhood
How do we protect kids online while embracing innovation? Learn about navigating safety, privacy, and opportunity in the Digital Age.
Content provided by Connect x Protect
Budget & Finance Webinar Creative Approaches to K-12 Budget Realities
What are districts prioritizing in 2026? New survey data reveals emerging K-12 budgeting trends.

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 Trump Holds Back $2 Billion for Education Grants. What Will Happen Next?
The White House is keeping congressionally approved money locked up through a little-known process.
11 min read
050626 funding cuts trump schools lieberman fs 2270953986
Getty
Education Funding A School Wants a Tornado Shelter. A Federal Grant Keeps Getting in the Way
The district still can't spend a FEMA grant it was originally awarded in 2022.
9 min read
FemaGrant Maiorella 02
A new gym under construction in Wisconsin's Cuba City school district, pictured April 16, 2026, would have also served as a tornado shelter, thanks to an $8.8 million FEMA grant. But nearly four years after it was awarded the grant, the district still doesn't have the money.
Arthur Maiorella for Education Week
Education Funding Trump Sidestepped Congress on More Than $1 Billion in Ed. Spending Last Year
Newly published documents show how the Ed. Dept. departed from Congress' plans.
13 min read
The likeness of George Washington is seen on a U.S. one dollar bill, March 13, 2023, in Marple Township, Pa. The nonpartisan Congressional Budget Office says it expects the federal government will be awash in debt over the next 30 years.
Newly published budget documents show the U.S. Department of Education, in the first year of President Donald Trump's second term, took roughly $1 billion Congress appropriated for specific education programs and spent it differently than how lawmakers intended—or didn't spend it all.
Matt Slocum/AP
Education Funding Federal Funds for Schools Will Still Flow Through Ed. Dept. System—For Now
The Trump administration has been touting its transfer of K-12 programs to the Labor Department.
5 min read
Remaining letters on the Department of Education on Wednesday, March 18, 2026, in Washington.
Remaining letters on the U.S. Department of Education building in Washington on Wednesday, March 18, 2026. Despite the agency's efforts to shift management of many of its programs to the U.S. Department of Labor, key K-12 funds will continue to flow through the Education Department's grants system this summer.
Allison Robbert/AP