State funding for public higher education institutions is crucial in supporting college access and completion, particularly among students from historically under-represented groups, yet little is known about the mechanisms that states use to allocate funds and how they are affected by financial challenges. This article provides the first detailed…

All states have a formula that determines how state funding is distributed to school districts. Most state formulas anticipate or require that school districts raise some funds locally and adjust state allocations based on that anticipated local share of school funding. In theory, state funding formulas attempt to provide school districts with the…

Nearly every state has flaws in how it funds public education, particularly when it comes to equitable funding for historically underserved students. While challenges vary by state, there are five common pitfalls in education finance equity: (1) Formulas do not fully account for differences in student learning needs; (2) There are too many school…

The New York State Board of Regents' 2004-05 State Aid Proposal put forward the idea of instituting Foundation Aid as a response to concerns about the sufficiency of state education funding then being provided to local school districts. In 2007, prompted by legal action, a call for reform by the Regents, and the election of a new governor with a…

Background and Context: U.S. schools rely heavily on property tax revenue. Local funding represents more than 45 percent of district-level revenues in the United States, and 60 percent of local funding comes from property taxes (Evans et al., 2019). This funding structure exacerbates educational inequalities between property-rich and property-poor…

English learners (ELs) are one of the fastest-growing student groups in the U.S. K-12 system, making up about one in 10 students enrolled in public schools nationwide. Despite research showing that EL students need more resources and supports to be successful in school, funding at the federal, state, and local levels to provide those additional…

In the United States, K-12 school finance is largely controlled by the states. Every year, hundreds of billions of dollars in public funds are distributed based on 51 different configurations of formulas, rules, and regulations to over 13,000 districts that vary in terms of the students they serve, their ability to raise revenue locally, and many…

During the Great Recession and in the years that immediately followed, previous research has well-documented that U.S. public school districts receiving larger shares of their funding from state governments experienced larger declines in expenditures per student, as the GR impacted state tax bases more than it impacted local tax bases. Using…

Many recent critical reforms in state school finance systems have been catalyzed by the courthouse, not the statehouse. Advocates for equity-focused school finance reforms often consider legal action as the best path to significant policy changes. This brief discusses state-level lawsuits on adequacy and equity grounds and their outcomes.

The purpose of this study is to examine in what ways, if any, the introduction of the equity incentive portion of Louisiana's performance-based funding model impacted the underserved student groups it was designed to support. I employed a quantitative quasi-experimental design for this study by running three outcome variables (Adult Learner…

There is a deepening divide between higher education institutions that can sustain themselves fiscally in the wake of declines in state funding and those institutions that are struggling to sustain needed revenues. This research analyzes changes in revenue patterns from 2000-2015 in Midwestern public four-year colleges and universities to the…

Performance-based funding (PBF) policies that closely link higher education funding to performance metrics are common in the United States. Similar to other performance management systems, evidence suggests PBF policies have unintended impacts, such as cream-skimming. More specifically, evidence shows the fiscal incentives of PBF encourage…

Understanding how urban school districts allocate their education funds can help school leaders create more effective budgeting strategies and provide a basis for advocating for additional funding when necessary. This report provides an overview of how urban districts distribute their financial resources, highlights key areas of spending, and…

This paper asks whether increasing public school funding can be an effective long-run crime-prevention strategy in the U.S. Specifically, we examine the effect of increases in funding early in children's lives on the likelihood that they are arrested as adults. We exploit quasi-experimental variation in public school funding, leveraging two…

At their best, K-12 public school systems can be engines of social and economic mobility. Unfortunately, schools in lower-income districts -- whose students have the greatest academic needs -- often receive less funding than their counterparts in more affluent districts. Discussions about closing these funding gaps usually zoom all the way out to…