Education Funding

State K-12 Spending Is Inequitable and Inadequate. See Where Yours Ranks

By Mark Lieberman — October 28, 2021 4 min read
Collage of figures and money texture.
  • Save to favorites
  • Print

In close to two dozen states, high-poverty schools get less money per student or just the same amount as low-poverty schools, a new report shows, despite abundant evidence that high-poverty schools benefit from more robust investment.

A new analysis of U.S. Census Bureau data also shows wide disparities in how evenly school funding is distributed. On average, schools in the U.S. spend roughly $15,000 per student. But within states, average funding ranges from roughly $9,700 per student in Arizona to roughly $26,700 in New York. That’s a difference of roughly $17,000 per student.

These figures are among the findings in the annual “Making the Grade” report published Thursday by the Education Law Center.

They highlight the longstanding reality of U.S. public school funding: Per-student spending ranges widely from state to state and varies considerably from year to year, depending on property values, tax revenues, budgetary constraints, and political conditions. A highly complex and chaotic school finance system leaves thousands of schools with inadequate resources and millions of students with insufficient opportunities to learn.

Schools in more than half of U.S. states get fewer dollars per student than the national average. In 12 of those states, average school funding is more than $3,000 below the national average.

All of these 2019 figures are adjusted for regional differences and omit federal funds, which make up just 8 percent of the nation’s K-12 education investment.

The report’s authors, Danielle Farrie and David Sciarra of the Education Law Center, argue that these massive disparities reinforce the need for more federal support for the nation’s public school system. Ideally, they write, expanded federal funding would spur states to ramp up their own investment, rather than giving them cover to make cuts.

They’re pushing for Congress to pass President Joe Biden’s fiscal year 2022 federal budget proposal that includes $20 billion in “equity grants” for states that take steps to make their school funding formulas more equitable.

“Current dollars from Title I and other recurring federal sources are simply too small to improve the overall funding of public education in the states,” they write.

Several states, including Tennessee and Vermont, are currently in the process of revamping their funding formulas. In several others, like Arizona and Pennsylvania, legal challenges to school funding formulas aim to improve public school offerings and address historical inequities. In North Carolina, a federal judge is urging lawmakers to quickly add billions of dollars to the state’s education budget or face reprisal.

Some states invest more, and a higher percentage of their overall budgets

The report assigns states a grade of A through F in three areas:

Funding Level: How much money schools get;

Funding Distribution: Whether high-poverty schools get more money per student than low-poverty schools;

Funding effort: How much schools get relative to a state’s overall gross domestic product.

Wyoming is the only state to receive an A grade in all three metrics. Only one other state, Alaska, received only A and B grades. (Vermont received an A for funding level and funding effort, but didn’t receive a score for funding distribution because of data reporting inconsistencies, the report says.)

States that scored the highest on the report’s funding distribution category allocate more funding to schools with at least 30 percent of students from families in poverty than to schools with fewer than 5 percent of students in poverty.

High-poverty schools in Utah, for instance, get 57 percent more funding than the state’s low-poverty schools. But in most states, students in high-poverty schools get the same amount of funding, or up to 1 percent less, than students in low-poverty schools. In Illinois, for instance, low-poverty schools get roughly $19,000 per student, while high-poverty schools get $15,500 per student on average. Those numbers followed the state’s 2017 school funding formula revamp, which was designed to resolve longstanding inequities..

Current dollars from Title I and other recurring federal sources are simply too small to improve the overall funding of public education in the states.

Two states, Florida and Nevada, got an F on all three measures. Five more states—Alabama, Arizona, North Carolina, Tennessee and Utah—got two F grades out of three. Another 15 states got one F grade.

States invest annually anywhere from 2.3 percent (Arizona) to 5.9 percent (Vermont) of their overall GDP in public K-12 schools. Twenty-seven states invest below the national average of 3.37 percent.

How the status quo can change

Farrie and Sciarra advocate for expanding federal aid to high-need students and for offering incentives to states that take tangible steps to close equity gaps.

Longer-term, though, they argue that broad political consensus will be the best mechanism for achieving a school funding system that works for all students.

“Only sustained political campaigns focused on strengthening public education can change the trajectory in states that, for decades, shortchanged students of an adequate education,” they write.

Recent efforts to push states to opt into a federal expansion of the Medicaid health insurance program offer a roadmap for the advocacy that may be necessary to prod schools to spend more on education, the report says.

Many states have been reluctant to join the program despite widespread public support and a broad consensus that it’s a fiscally responsible path to take.

States that take a similar approach in response to federal incentives for equity-minded K-12 finance reforms would lose “the long-term benefits that would come from greater investment, such as improved educational outcomes, reduced racial disparities, and economic growth,” Farrie and Sciarra write.

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
School Climate & Safety Webinar
There But Not Present: Rethinking Student Engagement
Learn how to recognize the early signs of disengagement and what the behavioral science reveals about which interventions actually work.
Content provided by Frontline Education
Teacher Preparation Webinar What Teacher Education Should Look Like in the Age of AI
Explore the current trends around the use of AI in teacher preparation and continuing education with data from the EdWeek Research Center.
English Learners Webinar How Can School Districts Better Support English Learners With Disabilities?
Join this webinar to hear recent findings from the EdWeek Research Center and discover practical strategies for improvement.

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 Opinion An Expert Explains How the Federal Scholarship Tax Credit Will Work
A former Ed. Dept. official predicts the program will generate $3 billion for scholarships in 2027.
•
9 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Education Funding Ed. Dept. Meets Research Spending Deadline—But Bigger Funding Challenges Loom
The Institute of Education Sciences finished spending more than $170 million set to expire Sept. 30.
3 min read
Director of the United States Office of Management and Budget Russell Vought walks down a staircase on Capitol Hill in Washington, Thursday, July 16, 2026.
Russell Vought, director of the White House Office of Management and Budget, walks down a staircase on Capitol Hill in Washington on July 16, 2026. The OMB withheld millions of dollars from the U.S. Department of Education's research arm for months, raising the possibility it wouldn't spend the money on education research and data collection in time for its Sept. 30, 2026, expiration.
Allison Robbert/AP
Education Funding Trump's Ed. Dept. Is Still Disrupting Grants—Just More Quietly Than Before
The agency is deploying subtler procedures that result in fewer new grants and less stability for recipients.
11 min read
Senate Minority Leader Chuck Schumer, D-N.Y., center, confers with Sen. Brian Schatz, D-Hawaii, talk following a Senate Democratic Caucus meeting, at the Capitol in Washington, Tuesday, Feb. 3, 2026.
Sen. Brian Schatz, D-Hawaii, (right, speaking with Senate Democratic Leader Chuck Schumer) secured a commitment from Education Secretary Linda McMahon to supply additional funding for Native Hawaiian Education Program grantees when the U.S. Department of Education hadn't launched a competition for new grants. The Trump administration practice of abruptly canceling existing competitive education grants has slowed, but the Education Department is using procedures that result in fewer new grants and less stability for funding recipients.
J. Scott Applewhite/AP
Education Funding Trump, Bucking Congress Yet Again, Cancels $100 Million for Education
A "pocket rescission" hits programs for migratory farmworkers and college-level language instruction.
7 min read
Russell Vought, acting director, Office of Management and Budget, right, and Homeland Security Secretary Markwayne Mullin listen during a cabinet meeting, Friday, July 31, 2026, at Camp David, the presidential retreat, near Thurmont, Md., Friday, July 31, 2026.
Russell Vought, director of the White House Office of Management, listens during a Cabinet meeting on July 31, 2026, at Camp David, the presidential retreat, near Thurmont, Md. The White House has announced an $810 million package of "pocket rescissions," saying it won't spend the congressionally appropriated funds before the end of the 2026 federal fiscal year, which ends Wednesday. The rescissions include nearly $100 million for U.S. Department of Education program.
Jacquelyn Martin/AP