Education Funding

States Found to Vary Widely In School Spending

By Catherine Gewertz — June 05, 2002 3 min read
  • Save to favorites
  • Print

New York and New Jersey spend more than twice the amount that Utah and Mississippi spend on each student in elementary and secondary schools, according to a report by the U.S. Census Bureau.

Read the Education Finance Survey by the U.S. Census Bureau. (Requires Adobe’s Acrobat Reader.)

The Census Bureau’s report examines education financing for the 1999-2000 school year, the most recent for which data were analyzed. It shows that New Jersey spent $10,283 per student, followed by New York at $10,039 and the District of Columbia at $9,933. Spending the least were Utah, at $4,331; Mississippi, with $5,014, and Arizona, with $5,033.

The average state per-pupil spending figure was $6,835.

The figures do not include capital expenses.

In addition to ranking the 50 states and the District of Columbia by how much they spend, the Census Bureau compiled other data profiling revenue, spending, and debt patterns at the state and district levels. The report was released May 23.

Education finance experts noted that higher spending doesn’t always lead to higher-quality education. But in the views of some analysts, the disparities between the highest- and lowest- spending states—while long-standing and therefore no surprise—were cause for concern.

Lawrence O. Picus, the director of the Center for Research in Education Finance at the University of Southern California in Los Angeles, said the figures reflect the differences in states’ costs of living and in their abilities to raise resources to finance public schools.

Federal Role?

In light of those variations, Mr. Picus said, it is difficult to pinpoint an appropriate per-pupil amount all states should strive to spend. Nonetheless, he contended, the fact that some states spend only $5,000 per pupil, when others spend more than $10,000, signals the need for measures to narrow the gap.

He suggested more federal funding for states less able to raise their own resources.

“A child in Mississippi deserves the same level of effort as one in Newark [New Jersey],” Mr. Picus said. “These figures should move us to find ways to solve some of those differences in resource availability.”

State-to-state comparisons of per-pupil spending must take into account the differences in each state’s demographics, said Mike Griffith, a policy analyst who focuses on school finance issues for the Education Commission of the States, a national research organization in Denver.

For instance, Mr. Griffith said, school spending in New York outpaces that in Utah because of the Eastern state’s higher costs for land, supplies, and teacher salaries. New York’s schools also serve larger populations of students who are more costly to educate, such as those learning English and from low-income families.

State Studies

Because of their lower costs of education and smaller shares of disadvantaged students, states such as Utah can often emerge in studies as having relatively high student test scores while spending less than other states on education, Mr. Griffith said.

“You could say from looking at those figures that they seem to be providing the cheapest education with some of the best outcomes,” Mr. Griffith said. “But that isn’t necessarily the case. It’s really more about the cost of providing education.”

Mr. Griffith believes that the federal government cannot be relied upon to close the spending differentials among states, since that would require more than tripling the 7 percent that it currently supplies to K-12 education budgets.

Since costs and other factors vary so much from state to state, a better approach to equalizing spending is for each state to undertake the difficult process of figuring out an appropriate level of school spending, given the academic goals it wishes to achieve, and to revise its funding formula to ensure each district receives that amount, Mr. Griffith said.

Maryland recently passed such a measure, and Kansas, Indiana, Illinois, Montana, Oregon, and Nebraska are among other states studying such changes, he said.

The University of Texas, in conjunction with the ECS, is planning a study to determine whether there is a national spending figure that would be an appropriate target for all states, Mr. Griffith said. (“Md. Schools Get Big Hike in Funding,” April 17, 2002.)

Related Tags:

A version of this article appeared in the June 05, 2002 edition of Education Week as States Found to Vary Widely In School 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
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
Education Funding Webinar Congress Approved Next Year’s Federal School Funding. What’s Next?
Congress passed the budget, but uncertainty remains. Experts explain what districts should expect from federal education policy next.

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