School funding
School funding in the United States is primarily sourced from local communities, state governments, and the federal government, with significant variations in the amount received by different schools based on several factors. About 90 percent of public education funding during the 2020-21 school year came from state and local sources, while federal contributions were minimal. Funding largely depends on state sales and income taxes, as well as local property taxes, leading to disparities where affluent areas benefit from higher resources compared to poorer communities. This inequitable funding system can exacerbate educational inequalities, adversely affecting students in underfunded districts.
Historically, the responsibility for education in the U.S. has rested on local municipalities and states, a system that has evolved over centuries but often left many children, particularly from low-income families, without adequate educational opportunities. Legislative efforts, such as the Elementary and Secondary Education Act of 1965 and its later revisions, aimed to address these disparities, yet challenges persist. Although initiatives like the No Child Left Behind Act and the Every Student Succeeds Act were designed to improve accountability and school performance, critics argue that they have not sufficiently closed the education gap. Consequently, the ongoing debate around school funding remains a crucial topic, reflecting the broader issues of equality and access in education.
On this Page
School funding
US public schools receive funding from local communities, the state, and the federal government. The proportion that each school receives, however, varies widely according to several factors. The federal government only kicks in a fraction of what the local and state governments pay for schools. During the 2020–21 school year, state and local governments funded about 90 percent of public education costs in the United States, according to the National Center for Education Statistics.
State sales tax and income tax and local property taxes supply the majority of school funds. Because tax rates differ from state to state and the size of properties varies in different municipalities, many schools are disproportionately funded. This means schools in different states and even neighboring communities can receive unequal amounts of money. More affluent communities with higher property taxes receive more funding for schools, while impoverished communities receive less funding. How much the local and state governments pay toward school funds greatly differs. For example, a state might pay the majority of its educational expenses, while another state might rely on local taxes to fund schools. This system of funding schools causes inequalities in education and harms school districts in need, which in turn hurts students.
Private schools do not receive money from local, state, and government taxation. They are funded through tuition, private grants and donations, and fundraising efforts. Parochial schools are religious institutions and are usually affiliated with local churches, which help to fund the schools. The major differences between public and private schools are the way they are funded and the education they provide. Public schools follow a curriculum, rules, and regulations set forth by the states, while private schools set their own agendas.
History
Religious leaders in the early seventeenth-century American colonies required colonists to teach their children how to read the Bible. In 1647, the Puritans in Massachusetts enacted the Old Deluder Act, which forced communities of fifty families or more to establish, fund, and operate schools. Many communities did not follow the law because they could not afford to hire teachers and run schools. Wealthy communities usually established schools for the more affluent children. Many poor children remained uneducated or were taught by their families.
Education in the colonies during this time varied greatly. Some communities established schools, but many children—especially those in rural areas—learned the basics from parents who were oftentimes too busy with running farms, businesses, and households to properly teach their children to read and write. Affluent families could afford to send their children to schools or hire tutors, while poor families typically could not. This created a disparity in education between the wealthy and the poor.
This gap continued to widen when the colonies declared their independence in the late eighteenth century, becoming the United States in 1783. While the new nation stressed the importance of educated citizens, it left the task of education to local communities, many of which could not afford to establish schools.
The country passed ordinances that required areas to establish schools, such as the Land Ordinance of 1785 and the Northwest Ordinance of 1787. Many proponents of public education, including Thomas Jefferson and Dr. Benjamin Rush, spoke out in favor of a public education system; however, the country failed to establish a public school system until the nineteenth century.
During this time, education in the United States remained under the control of the local municipalities and states, which were in charge of establishing, funding, and running schools. Most schools had to charge tuition, which only the wealthy could afford; many poorer Americans were unable to attend school. Schools also required students to be able to read and write. This condition further widened the education gap between the wealthy and poor, since the wealthy typically learned how to read and write before attending school.
Public schools were poorly funded, lacked learning materials, and faced issues such as overcrowding and teacher shortages. This led many to advocate for government-funded public schools. Opponents worried, however, that government-funded education would result in higher taxes, widen the education gap between the rich and the poor, dictate the curriculum, and more. The states gained a tighter hold on education in the 1840s, and many began to establish free common schools, which were paid for by tax money. This system of funding schools continued through the twentieth century.
In 1965, US president Lyndon B. Johnson passed the Elementary and Secondary Education Act (ESEA) to combat poverty in the nation. The goal of the act was to reform how schools were funded to give all children equal access to education. States still held the responsibilities of funding and providing education, but the ESEA helped supplement the state support. It provided grants for school programs for low-income students as well as other programs to aid educational needs.
President George W. Bush in 2002 renamed the ESEA the No Child Left Behind (NCLB) Act, which further changed education in the nation. This act held schools accountable for students' achievements and required states to set academic standards in math and reading. Schools were required to meet or exceed standards set forth by each state. Schools that did not meet these standards faced penalties and risked losing federal funding. In such cases, students would be given transfer options and schools could face restructuring or federal governance.
Some experts complain that federal efforts such as the NCLB have done little to close the education gap between wealthy and poor school districts. Overwhelmingly, that act was found to be ineffective and was repealed by President Barack Obama in December 2015. The bill that replaced it, the Every Student Succeeds Act (ESSA), returned much of the authority over the public school system back to the states and greatly reduced federal involvement. While many leaders praised the ESSA, critics continued to find fault with it, maintaining that it still placed too much emphasis on state assessments and resulted in inconsistent quality across schools, particularly harming districts with large low-income populations.
Bibliography
Brackemyre, Ted. "Education to the Masses: The Rise of Public Education in Early America." U.S. History Scene, 9 Aug. 2012, ushistoryscene.com/article/rise-of-public-education/. Accessed 26 Sept. 2024.
"Education in the United States: A Brief Overview." U.S. Department of Education, September 2005, www.govinfo.gov/app/details/GOVPUB-ED-PURL-gpo86576. Accessed 17 Nov. 2014.
"Every Student Succeeds Act." National Alliance for Partnerships in Equity, napequity.org/public-policy/frontline-legislation/essa/. Accessed 26 Sept. 2024.
"Finance: How Do We Fund Our Schools?" PBS, 5 Sept. 2008, www.pbs.org/wnet/wherewestand/reports/finance/how-do-we-fund-our-schools/197. Accessed 17 Nov. 2014.
Petrilli, Michael J. "40 Years After 'A Nation at Risk,' How Has Standards-Based School Reform Succeeded—and Failed?" The 74, 19 Mar. 2024, www.the74million.org/article/40-years-after-a-nation-at-risk-how-has-standards-based-school-reform-succeeded-and-failed/. Accessed 26 Sept. 2024.
"Private Versus Public." GreatSchools.org, 13 June 2017, www.greatschools.org/find-a-school/defining-your-ideal/59-private-vs-public-schools.gs. Accessed 26 Sept. 2024.
"Public School Revenue Sources." National Center for Education Statistics, May 2024, nces.ed.gov/programs/coe/indicator/cma/public-school-revenue. Accessed 26 Sept. 2024.
"School Funding: Do Poor Kids Get Their Fair Share?" Urban Institute, May 2017, apps.urban.org/features/school-funding-do-poor-kids-get-fair-share/. Accessed 26 Sept. 2024.
"Who Pays for Education?" UShistory.org, Independence Hall Association, www.ushistory.org/gov/12c.asp. Accessed 17 Nov. 2014.