The Disconnect Between Education Spending and Student Performance
Recent findings reveal a striking disconnect between educational spending and student outcomes. A comprehensive analysis of over 12,000 school districts across the United States indicates no significant correlation between increased financial investment in education and improved student performance on standardized tests, particularly the National Assessment of Educational Progress (NAEP). Conducted by Open The Books, a pro-transparency organization, the study highlights a troubling trend: as education-related salaries rose, student performance sometimes declined. Notably, in Maine, educational payrolls increased by 19% from 2019 to 2023, yet 4th and 8th graders experienced a substantial drop in scores, plummeting from 22nd to 38th in the nation for reading and math.
The analysis drawn from NAEP data further substantiates these findings. In Maryland, despite the implementation of a decade-long, $30 billion education initiative called "Blueprint for Maryland’s Future," state rankings on the NAEP exam have decreased by eight positions since 2019. In stark contrast, Massachusetts managed to achieve the highest scores nationally on the NAEP exams for both 2019 and 2024 while limiting its education payroll increase to just 4% over the same period. This scenario underscores a disturbing reality: increased funding does not inherently translate to enhanced educational performance, with some studies even suggesting that larger salaries might correlate with poorer outcomes.
Open The Books CEO John Hart emphasized the importance of transparency for parents, asserting their right to know that higher financial investments in education do not guarantee better performance for their children; in some cases, it may even correlate with worse results. The study examined teacher and administrator salaries over a four-year span and correlated this data with student results on the NAEP tests. It’s notable that the study did not differentiate between teacher salaries and those of school administrators, raising questions about how budget allocations are impacting educational outcomes.
Research conducted by economist Eric Hanushek sheds light on trends within school budgeting. He pointed out that while teachers typically constitute 55-60% of educational budgets, the proportion of administrative salaries has been increasing. This shift may be significant in understanding the disconnection between spending and performance. Hanushek expressed no surprise at the study’s findings, emphasizing the importance of targeted salary increases over blanket raises across the board. He pointed out that districts that focus on advantages for effective teachers have observed improvements in student performance compared to those that do not.
Some large districts have indeed transitioned to performance-based pay structures, focusing on rewarding effective teachers through enhanced salaries. Cities like Washington, D.C., Dallas, and Houston have implemented such strategies, resulting in significant improvements in their educational outcomes. Critics warn, however, that measuring teacher performance can be challenging due to variables beyond educators’ control impacting student success. The risk that teachers may feel financially threatened by the performance of their students complicates the evaluation process and poses a dilemma for educators.
An additional layer of complexity is added by the impact of the COVID-19 pandemic on education. With numerous districts experiencing disruptions and restrictions on in-person learning, it’s uncertain what long-term effects have emerged on both educational expenditure and student performance. This unprecedented scenario raises further questions about how financial investments in education can be truly evaluated in light of significant challenges faced during the pandemic.
