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Does higher spending equal better education outcomes?

K-12 public school spending is at an all-time high, and America spends more per student than any other developed nation. In 2022, the national average for K-12 spending was $16,340 per pupil. Comparatively, Washington spent $18,175 per pupil, Idaho spent $9,670, per pupil, Montana spent $13,582 per pupil, and Wyoming spent $18,529 per pupil. Some argue that these spending numbers are directly correlated with education scores. Does increased spending result in improved test scores?



It should be considered that education scores have fallen in the past couple of years due to numerous factors, including the COVID-19 lockdowns that had a drastic effect on K-12 education. But still, if this theory is true, then there should seem to be some positive trend among the states that spend the most per pupil. With the recent uptick of parents choosing alternative schooling options including homeschool, private school, and public charter schools within the past four years, concerned parents and stakeholders are taking a closer look into education outcomes.

The data shows that within the Mountain States per pupil K-12 spending has been steadily increasing. This reflects a nationwide trend as well. Some assume the notion that more money spent equals more desirable educational outcomes. But, as the numbers show, that is not the case. From a nationwide macro perspective, spending has increased while outcomes have been stagnant and slightly decreasing.

 

For a more focused case study, let’s take the example of New York. It has been the top spender in K-12 for the last two decades, yet it remains in the lower middle of the pack in educational benchmarks. In contrast, Idaho has consistently been the lowest spender in this category. But, over the past twenty years, Idaho has outperformed New York in 4th grade math, 8th grade math, and 8th grade reading. Idaho averages just over one-third of what New York spends year over year.




Another example would be looking at Washington state. The figures show generally decent test scores year over year, while taking a drastic hit during the Covid era from 2020-2022. One might then look at the state’s 2022 spending of $18,175 per pupil and correlate its above-average spending with its above-average results. But, upon further examination, this would prove false.


Washington’s largest two-year spending increases were from 2017 to 2019 when it jumped from $11,815 to $14,382. During this same time, Washington’s 4th-grade math, 4th-grade reading, and 8th-grade reading scores all fell from its previous benchmark. The numbers clearly show that the states that spend the most do not have the best outcomes and the states that spend the least do not have the worst outcomes.




While the political narrative is that the more funding put into the K-12 system, the better the output of scores, the data show a different result. Each state has different funding models, different itemized budgets, and unique challenges. The overwhelming conclusion is that there is little if no positive correlation between spending per pupil and average scores by state. There are numerous factors that affect the quality of education our children are receiving besides raw spending. Efforts should be made to tie new spending to desired educational performance outcomes

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