Education Funding

U.S. Is Big Education Spender in Global Study

By Millicent Lawton — December 11, 1996 4 min read
  • Save to favorites
  • Print

Washington

The United States spends more per pupil on K-12 education than does virtually any other nation participating in a new international study, but the huge disparities in spending among the 50 states give it a unique fiscal split personality.

The report, which was scheduled for release this week by the Paris-based Organization for Economic Cooperation and Development, also found that U.S. spending for education goes disproportionately for expenses other than teacher pay, compared with the spending patterns of other countries that belong to the OECD. The United States spends a greater portion of its education dollars on budgetary items other than teacher pay than does any other participating country except the Czech Republic.

The OECD is a 29-country federation that promotes economic growth and world trade. It includes most European nations and other industrialized countries such as Australia, Canada, Japan, and Mexico.

The new report, “Education at a Glance,” is the fourth edition of the study since 1992. For the first time, it appears in two volumes: the 396-page “OECD Indicators” and a 75-page summary and analysis. It presents a variety of characteristics of primary, secondary, and higher education--including the cost of education, levels of student and adult achievement, teacher pay, and the relationship between education and employment. The data were collected from 1993 to 1995.

Thirty countries, including the non-OECD-member Russian Federation, participated, making for the largest group ever. Not all countries contributed to all data categories.

Compared with other nations, Americans are big spenders in public and private education. In the elementary grades, the United States spends $5,492 per pupil, more than than 22 other OECD countries and second only to Switzerland, which spends $5,835. The study converted all monetary figures into U.S. dollars based on purchasing power.

In secondary education in public and private institutions, the U.S. figure of $6,541 per pupil is exceeded only by those of Austria and Switzerland. When it comes to higher education, the United States’ spending of a whopping $14,607 a student outpaces that of every country but Switzerland and is nearly double the OECD average.

But when expenditures for education institutions at all levels are taken as a percentage of gross domestic product, or national income, the United States comes in sixth out of 27 countries--behind Norway, Canada, Finland, Denmark, and Sweden. Americans spend about 6.8 percent of their GDP on education; the other 26 countries spend between 3 percent and 8 percent.

Public-Private Split

The report also tallies the share of all public expenditures devoted to education spending, an indication of the prominence it has among other taxpayer-funded spending priorities.

The United States spends 14.2 percent of the public budget on all levels of education. That rate exceeds more than 14 other nations’ but is a smaller percentage than the commitments of Australia, Korea, Mexico, Norway, and Switzerland.

Private money figures prominently in overall U.S. education funding; in only two other countries is private funding as or more prominent.

For all levels of education combined, the United States gets 23.6 percent of funds from private sources. Japan receives 24.7 percent and Korea 34.1 percent.

But in all three countries, those figures are heavily influenced by the large private-sector impact on higher education. In U.S. elementary and secondary education, conversely, 91 percent of the funding comes from the public sector.

For the first time, the report details the disparities in education spending among a nation’s regions. The differences among U.S. states are greater than they are among Canada’s provinces or Switzerland’s cantons.

The highest-spending U.S. state outspent any of the regions in the seven countries examined in this category. The lowest-spending U.S. state was about on a par with the highest-spending one in France.

But Andreas Schleicher, the principal administrator of the OECD’s statistics and indicators division, said it is difficult to equate the regional divisions of different nations. Comparisons must be done “with a little bit of caution,” he told reporters at a briefing here last week.

Nonteaching Costs

Also new to the study were data on teachers’ salaries and other budget items. Except for the Czech Republic, the United States spends a smaller proportion of its elementary and secondary education money on teacher pay than do 22 other nations.

At the primary and secondary levels, nonteaching costs accounted for nearly half of total U.S. spending.

But, again, equitable comparisons are problematic because in 13 of the countries, teacher-compensation data include all staff members’ pay.

For all staff salaries, the United States spends 79.5 percent of operating expenditures--slightly below the multination average--while Germany and Japan each spend about 87 percent.

On teachers’ pay alone, the United States devotes 56.2 percent of current spending--less than Austria, Finland, Greece, or Ireland, but more than Denmark and Sweden.

The Department of Education helps underwrite the OECD study.

The United States takes part “because the U.S. is interested in having a world-class education system and wants to be able to compare our performance to others’,” said Nabeel Alsalam, the director of special studies and reports at the department’s National Center for Education Statistics.

Related Tags:

A version of this article appeared in the December 11, 1996 edition of Education Week as U.S. Is Big Education Spender in Global Study

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
Unlocking Success for Struggling Adolescent Readers
The Science of Reading transformed K-3 literacy. Now it's time to extend that focus to students in grades 6 through 12.
Content provided by STARI
Jobs Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
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
Climb: A New Framework for Career Readiness in the Age of AI
Discover practical strategies to redefine career readiness in K–12 and move beyond credentials to develop true capability and character.
Content provided by Pearson

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 Again Proposes Major Education Cuts in New Budget Proposal
The president again wants lawmakers to consider billions in K-12 spending cuts and program eliminations.
7 min read
The Senate and the Capitol Dome are illuminated in Washington, early Thursday, April 2, 2026, as Congress meets in a short, pro forma session.
The Senate and the Capitol dome are illuminated in Washington early in the day on Thursday, April 2, 2026. For the second year in a row, the White House budget proposes major cuts to federal education programs that the Republican-led Congress rejected last year.
J. Scott Applewhite/AP
Education Funding Arts Education Advocates Talk About How to Elevate Their Discipline
Art education community members come together to discuss funding challenges and opportunities.
3 min read
DSC 4497
WASHINGTON, DC - MARCH 24: National arts education leaders, advocates, and policymakers gather for a couple of hours at the University Club on March 24, 2026 in Washington.
Marvin Joseph for Education Week
Education Funding Common Questions About Education Funding
Education Week has answered some of the most common questions about education funding in the United States.
1 min read
MINNEAPOLIS, MN, January 22, 2026: Students at Washburn High School fill the stairwell during passing time in Minneapolis, MN.
MINNEAPOLIS, MN, January 22, 2026: Students at Washburn High School fill the stairwell during passing time in Minneapolis, MN.
Caroline Yang for Education Week
Education Funding Federal Funding Disruptions for Schools Are Far From Over
Signs are piling up that schools could experience more funding turbulence in the coming months.
12 min read
President Donald Trump speaks during a roundtable discussion on college sports in the East Room of the White House, Friday, March 6, 2026, in Washington.
President Donald Trump during a recent roundtable discussion in the East Room of the White House, on March 6, 2026, in Washington. Trump's administration is using new ways to incorporate its policy priorities into grantmaking that will affect schools and other recipients of other grants.
Julia Demaree Nikhinson/AP