Association of Freshman Retention Rates with Instructional Expenditure and Residential Status : A Case Study for Large Public Colleges

Retention is a key indicator of institutional effectiveness in education research. Retaining full-time freshman students has been a long-standing problem for institutions of higher education. Overall, 40% of U.S. college students leave college among which the majority are freshman students. About 30% of freshman students drop out before their sophomore year of college. The primary causes for leaving college include financial pressure, falling behind in classwork, lack of social connections, and loss of family support. Higher educational institutions need to understand the dynamic between different expenditures and freshman retention rates to responsibly and strategically allocate funds to what will best support institutional success. This study investigates how freshman retention rates at large public colleges are associated with instructional expenditures and residential status. Findings of this study indicate that regarding freshman retention at large public colleges, spending more money on instruction goes further for residential colleges compared to non-residential ones. In other words, for most levels of instructional expenditure, residential colleges have higher freshman retention rates than non-residential colleges. Findings of this study can assist higher education institutions in directing their efforts toward what will best support institutional success.

The effects of charter school enrollment losses and tuition reimbursements on school districts: Lifting boats or sinking them?

We analyze a natural experiment in which policymakers in Pennsylvania first implemented, and later removed, reimbursements to districts for students exiting to brick and mortar and cyber charter schools. Generalized difference-in-difference models show that larger shares of students enrolling in charter schools predict decrements in spending, financial health, and achievement in sending districts; however, these relationships attenuate in years when districts receive reimbursements. After receiving reimbursements, districts with increased competition spent more on instruction and instructional support services, but not on facilities or non-instructional operations. Perhaps due to higher instructional expenditures, the relationship between competition and student achievement in reimbursement years is significantly less negative, and at times even positive, compared to non-reimbursement years. Cyber charter schools induce fewer instructional expenditures in districts than brick and mortar charter schools. The findings show clear policy choices can support traditional public systems experiencing competition.

Ordering Chaos: The Performance Consequences of Budgetary Changes

Literature on punctuated equilibrium theory has aimed to explain the causes of policy punctuations. What remain unknown are the consequences of those punctuations (and other size changes) for organizations. Specifically, this study analyzes how budgetary changes affect organizational performance. While the connection between financial resources and organization outcomes has been examined before, the analyses here expand upon previous work by considering the full spectrum of budgetary changes from negative punctuations to positive punctuations. This topic is important given today’s fiscal uncertainty. For managers and bureaucrats, they are expected to stabilize organization outputs no matter what policy inputs are established in the organization. At times, inputs can be erratic and unstable—successful organizations can find a way to maintain performance despite these obstacles. In the context of school districts, this study examines the performance consequences (measured by annual changes in the statewide standardized test pass rate) of different size alterations in instructional expenditures. Results indicate that, generally, organizations are able to dampen the impact of negative financial changes and improve upon budgetary increases in the translation to outcomes.

Equity and efficiency of Minnesota educational expenditures with a focus on English learners, 2003-2011: A retrospective look in a time of accountability

Policymakers and practitioners often must balance distributing resources equitably and efficiently while being accountable for high student achievement. This paper focuses on these concepts as they relate to English learners and examines equity and efficiency in Minnesota’s educational funding from 2003 through 2011, the years spanning implementation of the No Child Left Behind Act and Minnesota’s waiver from its regulations. Equity refers to the distribution of resources in the achievement of established goals (Alexander, 2012); efficiency entails the attainment of those goals using fewer resources (Rolle, 2004). We measure equity by looking at three standard distribution measures: (1) McCloone Index; (2) Verstegen Index; and (3) Coefficient of Variation (Odden & Picus, 2008). We operationalize efficiency using data envelope analysis, thus getting at aspects of technical efficiency. We found that distribution of expenditures are increasingly uneven in the nine-year period examined. This inequality was largely driven by low-spending districts falling farther behind the median. Moreover, despite specific guidelines in its school finance formula that awarded additional resources for English learner populations, districts with higher portions of English learners have lower total and instructional expenditures per pupil, not higher. If more dollars are not available for EL programming, then doing more with less becomes paramount. Nevertheless, the efficiency of resource use was relatively constant over the years examined with efficiency in the use of education resources similar for English learners as it was for the population overall.

Public expenditures and the production of education

The relationship between public education expenditures and student outcomes remains an important concern for policy analysts, educational administrators, and the public at large. While previous studies have failed to identify a consistent relationship between public investments in education and positive student outcomes, most analyses have not accounted for the different educational goals associated with various instructional expenditure categories. This study builds on prior research by using Pennsylvania’s public school districts to test proposed improvements in model specification for the traditional education production function. Using longitudinal, fixed-effects models, a detailed disaggregation of instructional expenditures is undertaken in order to account for the likelihood that different instructional subcategories (i.e. regular programming, special education, and vocational instruction) influence student outcomes in varying ways. The results suggest that the impact of expenditures may be understated in previous studies based on a failure to account for these distinctions, particularly in the case of Mathematics education.

Budget Adjustments in Response to Spending Variances: Evidence of Ratcheting of Local Government Expenditures

This paper examines the degree to which government administrators incorporate prior year spending variances into current year budgets. Government administrators have incentives to increase their budgets, and constraints on government spending are weaker than those found in the private sector. Therefore, we expect budget increases associated with prior year government overspending (actual exceeds budget) to be larger than decreases associated with underspending of the same amount. This differential response is called ratcheting. We examine budgets for 1,034 Texas school districts (1995 through 2002), and find budget ratcheting in operating expenditures and the subcategories of instructional and non-instructional expenditures. Ratcheting is most pronounced for non-instructional expenditures. We also find that budget ratcheting is more pronounced when controls on government spending are likely to be weaker. Specifically, budget ratcheting is more pronounced for school districts that operate in a less competitive environment and for districts that have less voter influence.