New Requirement to Publish Per-Pupil Spending Data Could Help Schools Direct Funding to the Neediest Students. But Even in the Face of Budget Cuts, State Implementation Lags
When the Tennessee Department of Education released school report cards in June, it included per-student spending data for every school in the state 鈥 a federal requirement intended to demystify complex budget data that has long been out of reach for parents.
Done well, experts predicted, the change had the potential to draw more parents into conversations about how schools spend money, particularly on their most vulnerable students.
But in September, when it came time to update the report cards, the financial data was gone 鈥 due, according to Tennessee Department of Education spokeswoman Victoria Robinson, to pandemic-related delays.
To Gini Pupo-Walker, state director of The Education Trust in Tennessee, an advocacy organization, the timing was unfortunate.
A school-by-school breakdown would not only help schools prepare for impending , but could help leaders direct additional funds if Congress eventually passes another pandemic relief bill, she said.
鈥淚f we鈥檙e going to have cuts to our budget, can we do it in a way that least impacts districts with the highest poverty?鈥 asked Pupo-Walker. She had planned to create a brief summary showing parents how to use the data along with information such as achievement trends, poverty levels, attendance and graduation rates.
鈥淚t鈥檚 very hard to imagine releasing that fact sheet if you can鈥檛 point people to their school鈥檚 report card,鈥 she said.
The Every Student Succeeds Act, which became law in 2015, required states for the first time to add per-student funding to their school report cards rather than districtwide averages that tended to obscure funding imbalances between similar schools in the same community. The requirement, which went into effect this year, 鈥渉as created a whole new lens into how money is spent and allocated in schools,鈥 said Jim Cowen, executive director of the Collaborative for Student Success, a nonprofit focusing on academic standards and assessments.
One school receiving more money than another doesn鈥檛 necessarily mean their services are inequitable, but parents can now see, for example, whether a school with more special education students or English learners receives more resources. The new requirement can also show how much is being spent on administration or instruction, allowing parents to see whether schools with the greatest needs have teachers with more or less .
The problem is that not all states are displaying the data in 鈥渨ays that are meaningful and actionable to communities,鈥 according to this year鈥檚 report from the Data Quality Campaign.
In fact, when Marguerite Roza, a Georgetown University professor and director of the Edunomics Lab, recently led a webinar for district leaders and offered to present their data back to them in an easier-to-analyze format, she said 鈥渢he chat box lit up.鈥
Alaska Education Commissioner Michael Johnson and Sue Deigaard, president of the Houston Independent School District, are among those who have sought her guidance to better understand whether districts are spending money in ways that help their most vulnerable students.
鈥淚 see this as an opportunity for districts [that] want to understand where their dollars are spent and the impact of how those dollars are spent,鈥 said Deigaard. For example, they could investigate whether an English learner from a low-income family is 鈥済etting the same investment鈥 regardless of where they go to school.
Now, she can begin answering that question, and she鈥檚 been directing parents with similar issues about choosing schools to examine the data themselves. She highlighted Foster Elementary, where 90 percent of the students are Black and 99 percent come from low-income homes. Per-student spending at the school is $8,146. In 2019, 52 percent of the students met or exceeded grade-level performance in all subjects, up from 43 percent the previous year, and the school received an A accountability rating.
鈥淭hey have just leaped,鈥 Deigaard said.
But just about five minutes away, across a four-lane highway, is Thompson Elementary. Demographically the same as Foster, it receives $8,632 per student. Forty percent of the students met or exceeded grade-level expectations in 2019, the same as the year before. The school earned a C rating.
鈥淭hompson hasn鈥檛 moved as fast,鈥 Deigaard said, even though it鈥檚 getting more money per student. The upshot? 鈥淲here are you spending your dollars and what is the return-on-investment on those dollars?鈥 she asked. 鈥淒igging in on that at a school-by-school level would help you identify best practices.鈥
For Deigaard, large spending gaps between schools raise the question of whether school funding decisions should be more centralized at the district level or made by local school leaders. She pointed to from Rice University showing the Houston district鈥檚 move toward decentralization 20 years ago didn鈥檛 increase student performance.
Now, with the prospect of more relief aid, she wonders whether district leaders should have more say in how it鈥檚 managed.
鈥淲e don鈥檛 know what next year is going to bring,鈥 she said. 鈥淲e should be canning our surplus harvest if we get surplus money.鈥
Few states allow comparisons
Some states, according to Roza and the Data Quality Campaign, are doing a better job than others of presenting the data and putting it in a larger context. The organization touted Illinois for its report card website, which allows for per-student spending comparisons between multiple schools.
鈥淪eeing a single school does nothing,鈥 Roza said.
Delaware is another state that gives parents, teachers and others multiple ways to compare how much schools spend on each student, the Data Quality Campaign鈥檚 report said.

But other states have errors or are missing data altogether. California publishes the information, but not on its official school 鈥淒ashboard鈥 site, and parents might not know they need to search for another report to find it. New York has some small school districts that didn鈥檛 submit data, Roza said, and according to her , Pennsylvania and South Dakota have not made any data available.
The pandemic interrupted Pennsylvania鈥檚 timeline for adding financial information to its state report card, according to Pennsylvania Department of Education spokesman Eric Levis.
Roza, however, noted that states had more than four years to comply.
It is unclear whether the states that are out of compliance will face any consequences from the U.S. Department of Education.
鈥淭he department did care about [states] getting the data up,鈥 Roza said. 鈥淏ut it hasn鈥檛 done anything about those places that are completely behind.鈥
The department did not respond to questions on how it plans to handle non-compliant states.
Some state-level organizations have used the data to go a step further than their education agency websites. BEST NC, a business-led education nonprofit in North Carolina, created a that offers additional search options and helps users see patterns in the results.
鈥淲e wanted there to be some ability to look at schools that are like your school,鈥 said Leah Sutton, the organization鈥檚 director of policy and advocacy. 鈥 We wanted to really pinpoint schools that are doing a lot for kids and leveraging their money well for kids.鈥
She highlighted that the state鈥檚 132 Cooperative Innovative High Schools 鈥 which are based on college campuses and target students at risk of dropping out 鈥 are seeing positive results.
鈥淣ow we have the data to say in almost all of these cases, we鈥檙e spending less and getting great outcomes,鈥 she said.
led by Julie Edmunds at the University of North Carolina at Greensboro showed students in these early-college models graduate high school with college credit or a two-year degree at higher rates than students who applied but didn鈥檛 get in.
鈥淓ven if early-college students do not go on to any further education, they are much more likely to enter the workforce with some postsecondary training,鈥 the study found.

Forcing tough decisions
If states have to make budget cuts because of declines in revenue, knowing which types of programs are most effective for students is useful information at a time when the pandemic鈥檚 long-term impact on school funding remains unknown.
School year 2021-21 budget reductions won鈥檛 appear on report cards until 2023. But Roza and other school finance experts have said there are ways districts can use the school-level information now to prepare for cuts.
鈥淪tates are facing massive budget shortfalls,鈥 Cowen said. 鈥淭hat鈥檚 going to force tough decisions on what gets funded and what doesn鈥檛. Having insight on where dollars are most effective is going to be hugely important.鈥
Policymakers and the public tend to focus on test score gaps between student groups and across schools and districts. But Roza said such conversations make more sense if they鈥檙e grounded in data about resources going to individual schools. She added if districts look at how they鈥檙e currently allocating funds, they can determine which schools they want to protect from reductions and which ones 鈥渃an tolerate deeper cuts.鈥
In her of what financial data has shown so far, Roza wrote that even though the law doesn鈥檛 require schools to show how they actually use the money, 鈥渉aving total spending by school for every school in the nation is a quantum leap forward.鈥
She鈥檚 working with a research center at the U.S. Department of Education to create a tool that will allow for comparisons across states.
In Tennessee, Pupo-Walker said the data would be useful if lawmakers attempt to revise the state鈥檚 for distributing money to schools. 鈥淚 think for the most part parents understand that our funding is not adequate,鈥 she said. The system requires districts to match state funding, but over time the state鈥檚 amount has remained flat, which makes it harder every year for districts to retain good teachers and provide quality programs. The per-student spending data, she said, can identify which districts are least able 鈥 because they have less property tax revenue 鈥 to provide the local match.
With many large districts losing enrollment this fall and growing concerns over students 鈥渇alling off a cliff鈥 and not connecting to remote classes, Roza added that how districts use resources to increase attendance could prove important in future years.
鈥淗ow are you using it to go out and reach them?鈥 she asked.
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