The ins and outs of school finance
The adequacy argument
Most state constitutions guarantee an adequate education for their citizens. But what is an adequate education? This question is finally being asked, and litigated, in many states. In 2002, an appeals court ruled that New York state would be providing an adequate education if most of its citizens learned what is needed to pass the eighth or ninth grades. In North Carolina, progress is being made in linking adequacy to passing grade-level standardized tests. In 2004, the Williams case, filed on behalf of public school students who claimed California did not provide them with access to basic minimum standards of education, was fought and successfully settled based on adequacy arguments.
How much does an adequate education cost?
In addition to the task of determining what an adequate education means, is the equally challenging task of determining how much an adequate education costs.
Dr. Carol Peck is president of the Rodel Charitable Foundation of Arizona, which recently commissioned a report to find out what particular programs would make economic sense in making a significant difference for Arizona schools. "So when money becomes available," she says, "it will be invested in strategies that have a proven track record, rather than back into the system where it can disappear or be used ineffectively. Our report found that there were five strategies that have proven to be effective in raising student achievement. One is full-day kindergarten for all students. Number two is preparing and recognizing teachers for high performance. The third is reducing class size. Evidence shows that it is more effective to target a specific classroom to get them to a ratio of 15 to 1 rather than to lower all classes just a little. The fourth is creating smaller schools or implementing a "school within a school" for schools with large enrollments. Number five is providing one-on-one tutoring and extra help for struggling students."
Spending on education
The ways states and districts choose to spend funds depends upon decisions made by state legislatures, school boards, and increasingly, the federal government. Educational expenditure is even more varied across the nation than funding is.
The best way for parents to understand how their school and district spends money is to participate in the decision making process by attending:
- PTA or PTO meetings
- school site council meetings
- school board meetings
- and, for the truly ambitious, the state government budgeting sessions.
These are the main places where public education spending decisions are made.

