Study Reveals Money Does Not Buy Higher Test Scores
Since 1970, federal government spending on education increased an astonishing inflation-adjusted 375 percent. That spending increase trickled down to the local level. School districts spent an average of $2,808 per student during the 1961-1962 school year and $10,441 per student during 2007-2008. What are the returns on that massive increase in spending?
According to a U.S. Department of Education’s National Center for Education Statistics study released during 2009, reading and math scores for nine and 13-year old students revealed minimal improvement since 1971. The final product of the education system, 17-year old student reading and math scores were “… not significantly different from that in 1971.” An inflation-adjusted $8,000 per student increase in spending resulted in a non-significant improvement in student learning.
It is puzzling there is a sizable investment without significant returns. According to Census Bureau statistics, of every dollar school districts spend, only 19 cents makes its way to students in the form of textbooks, technology, and other educational supplies. The other 81 cents of every dollar school districts spend goes to employee salaries and fringe benefits.
After examining the relationship between per pupil spending and graduation rate, the non-profit, non-partisan New America Foundation explains “… Wisconsin appears to get some of the best returns on its education compared to other states.” However, the same report led The New America Foundation to the conclusion “… the relationship between per pupil expenditure and graduation rate is not very strong.” Average composite ACT scores reveal Iowa students typically out-perform Wisconsin students on the college entrance exam despite Iowa historically spending significantly less per pupil than Wisconsin.
A recent report by the Center for Budget and Policy Priorities, a liberal think tank, revealed Wisconsin, one of 24 states in the study, experiences the largest reduction in state funding for education for the 2011-2012 school year. It is true state budget spending on education decreases $635 per-pupil under the recently approved balanced budget. However, that does not mean student spending is decreasing $635 per-pupil.
There is a litany of school districts literally bragging about improvements to their school district because of the recently approved balanced state budget.
Appleton School District maintains existing health insurance, saving $3 million because state budget provisions allow competitive bidding. Greenfield School District does not lay off employees, does not reduce educational offerings, and lowers the property tax levy. Kaukauna School District hired additional teachers, reduced class sizes at elementary, middle and high school, and has surplus for merit bonuses. Greendale School District partners with Alverno College to focus on high expectations and new learning techniques. Milwaukee School District and Racine School Districts students take advantage of expanded school choice to escape failing schools and save taxpayers money. Hudson School District changed insurance providers, saving an estimated $1.2 million annually. Fond du Lac School District closed a $4.4 million shortfall without increasing class sizes or reducing program offerings. Wauwatosa School District reduced the property levy, and did not eliminate programs or increase class sizes. New Berlin school district used Act 10 provisions to make up for nearly $3 million in aid reduction. Little Chute School District reduces taxes 16 percent. Kimberly School District saved $821,000 by changing insurance plans. Hartland-Lakeside School District saved $690,000 by switching insurance providers. Germantown School Board saved more than $1.5 million by changing insurance plans. Neenah Joint School District will save $1.3 million by offering new health insurance options.
The list goes on …
For years, governments have thrown money at education attempting to increase student learning and test scores. A nearly four-fold increase in spending on education during the last four decades has yielded limited improvement in test scores. The answer to successful education in the future is not just more money; it is efficiency, evolving techniques, innovative methods, and allowing local school boards and administrators the flexibility to manage the business of education. The budget repair bill and state budget provisions allow local school boards and school administrators the flexibility to exercise the steps necessary to increase student learning.