scholarly journals Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment

2017 ◽  
Vol 9 (4) ◽  
pp. 256-280 ◽  
Author(s):  
Joshua Hyman
Keyword(s):  
School Finance ◽  
College Enrollment ◽  
School Funding ◽  
Finance Reform ◽  
School Finance Reform ◽  
Funding Formula ◽  
Percentage Points ◽  
Long Run ◽  
Proposal A ◽  
School Spending

This paper measures the effect of increased primary school spending on students' college enrollment and completion. Using student-level panel administrative data, I exploit variation in the school funding formula imposed by Michigan's 1994 school finance reform, Proposal A. Students exposed to $1,000 (10 percent) more spending were 3 percentage points (7 percent) more likely to enroll in college and 2.3 percentage points (11 percent) more likely to earn a postsecondary degree. The effects were concentrated among districts that were urban and suburban, lower poverty, and higher achieving at baseline. Districts targeted the marginal dollar toward schools serving less-poor populations within the district. (JEL H75, I21, I22, I28)

scholarly journals The Effects of School Spending on Educational and Economic Outcomes: Evidence from School Finance Reforms *

2015 ◽  
Vol 131 (1) ◽  
pp. 157-218 ◽  
Author(s):  
C. Kirabo Jackson ◽  
Rucker C. Johnson ◽  
Claudia Persico
Keyword(s):  
Public School ◽  
Low Income ◽  
School Finance ◽  
The United States ◽  
Adult Outcomes ◽  
Finance Reform ◽  
School Finance Reform ◽  
Point Reduction ◽  
K 12 ◽  
School Spending

Abstract Since the Coleman Report, many have questioned whether public school spending affects student outcomes. The school finance reforms that began in the early 1970s and accelerated in the 1980s caused dramatic changes to the structure of K–12 education spending in the United States. To study the effect of these school finance reform–induced changes in public school spending on long-run adult outcomes, we link school spending and school finance reform data to detailed, nationally representative data on children born between 1955 and 1985 and followed through 2011. We use the timing of the passage of court-mandated reforms and their associated type of funding formula change as exogenous shifters of school spending, and we compare the adult outcomes of cohorts that were differentially exposed to school finance reforms, depending on place and year of birth. Event study and instrumental variable models reveal that a 10% increase in per pupil spending each year for all 12 years of public school leads to 0.31 more completed years of education, about 7% higher wages, and a 3.2 percentage point reduction in the annual incidence of adult poverty; effects are much more pronounced for children from low-income families. Exogenous spending increases were associated with notable improvements in measured school inputs, including reductions in student-to-teacher ratios, increases in teacher salaries, and longer school years.

scholarly journals The Rural/Nonrural Divide? K–12 District Spending and Implications of Equity-Based School Funding

AERA Open ◽  
2021 ◽  
Vol 7 ◽  
pp. 233285842098254
Author(s):  
Tasminda K. Dhaliwal ◽  
Paul Bruno
Keyword(s):  
School Finance ◽  
Rural Areas ◽  
School Funding ◽  
Finance Reform ◽  
Funding Formula ◽  
Underserved Students ◽  
Rural Districts ◽  
School Year ◽  
Local Control Funding Formula ◽  
K 12

In the 2013–2014 school year, the state of California implemented a new equity-minded funding system, the Local Control Funding Formula (LCFF). LCFF increased minimum per-pupil funding for educationally underserved students and provided greater autonomy in allocating resources. We use the implementation of LCFF to enrich our understanding of rural school finance and explore the implications of equity-based school finance reform across urbanicity (i.e., between rural, town, suburban, and urban districts) and between rural areas of different remoteness. Drawing on 15 years of financial data from California school districts, we find variation in the funding levels of rural districts but few differences in the ways resources are allocated and only modest evidence of constrained spending in rural areas. Our results suggest that spending progressivity (i.e., spending advantage of higher-poverty districts) has increased since LCFF, although progressivity is lowest in rural districts by the end of the data panel.

SCHOOL FINANCE REFORM: AID FORMULAS AND EQUITY OBJECTIVES

1998 ◽  
Vol 51 (2) ◽  
pp. 239-262 ◽  
Author(s):  
WILLIAM DUNCOMBE ◽  
JOHN YINGER
Keyword(s):  
School Finance ◽  
Finance Reform ◽  
School Finance Reform
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