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Public Comments on School Financing

KANSAS FAMILIES UNITED FOR PUBLIC EDUCATION ON STATE AID TO SCHOOLS

As of today (February 2, 2006), the website for Kansas Families United for Public Education (located at http://fundourpublicschools.com [1] states, under the heading "The Crisis": State aid has failed to keep pace with inflation."

I was puzzled by this statement, as I thought we were spending more and more on education each year. So I decided to investigate.

The Kansas State Department of Education has a table of recent education expenditures in Kansas. The data is located at http://www.ksde.org/leaf/data_warehouse/total_expenditures/d0Stateexp.pdf [2].

Here is the table of spending data:

 

Spending in Nominal Dollars

 

Total Spending

Per Student

School

FTE*

State

Federal

Local

Total

State

Federal

Local

Total

Total

Year

Enrollment

Aid

Aid

Revenue

Expenditures**

Aid

Aid

Revenue

Expenditures

Increase

1993-1994

437,210.1

1,468,606,823

137,260,114

1,011,858,024

2,617,724,961

3,359

314

2,314

5,987

3.44

1994-1995

440,684.2

1,558,335,916

140,485,296

1,012,554,570

2,711,375,782

3,536

319

2,298

6,153

2.77

1995-1996

442,465.9

1,604,933,171

150,316,623

1,061,918,793

2,817,168,587

3,627

340

2,400

6,367

3.48

1996-1997

445,767.3

1,618,449,030

181,533,320

1,121,816,183

2,921,798,533

3,631

407

2,517

6,555

2.95

1997-1998

448,609.0

1,815,684,144

189,120,462

1,058,428,663

3,063,233,269

4,047

422

2,359

6,828

4.16

1998-1999

448,925.7

2,035,194,082

202,565,725

1,004,736,639

3,242,496,446

4,533

451

2,238

7,223

5.79

1999-2000

448,610.3

2,110,484,390

220,780,350

1,071,444,132

3,402,708,872

4,704

492

2,388

7,585

5.01

2000-2001

446,969.9

2,152,622,486

261,038,153

1,172,918,480

3,586,579,119

4,816

584

2,624

8,024

5.79

2001-2002

445,376.6

2,200,529,799

310,104,678

1,269,928,113

3,780,562,590

4,941

696

2,851

8,488

5.78

2002-2003

444,541.4

2,277,804,680

340,728,648

1,335,185,546

3,953,718,874

5,124

766

3,004

8,894

4.78

2003-2004

443,301.8

2,124,578,761

376,908,121

1,592,564,728

4,094,051,610

4,793

850

3,593

9,235

3.83

2004-2005

441,867.6

2,362,223,172

398,667,040

1,528,524,331

4,289,414,543

5,346

902

3,459

9,707

5.11

Here is the Consumer Price Index for the relevant years:

CPI

(1982-84 = 100)

Year

CPI

Inflation

1993

144.5

 

1994

148.2

2.6%

1995

152.4

2.8%

1996

156.9

3.0%

1997

160.5

2.3%

1998

163.0

1.6%

1999

166.6

2.2%

2000

172.2

3.4%

2001

177.1

2.8%

2002

179.9

1.6%

2003

184.0

2.3%

2004

188.9

2.7%

Applying some arithmetic to the figures in the spending table produces this table of inflation-adjusted spending:

 

Spending Change Year to Year, Real Dollars

 

Total Spending

Per Student

School

FTE*

State

Federal

Local

Total

State

Federal

Local

Total

Year

Enrollment

Aid

Aid

Revenue

Expenditures**

Aid

Aid

Revenue

Expenditures

1993-1994

 

 

 

 

 

 

 

 

 

1994-1995

0.8%

3.5%

-0.2%

-2.4%

1.0%

2.6%

-0.9%

-3.2%

0.2%

1995-1996

0.4%

0.2%

4.0%

2.0%

1.0%

-0.3%

3.6%

1.6%

0.6%

1996-1997

0.7%

-2.1%

17.3%

2.6%

0.7%

-2.8%

16.3%

1.9%

0.0%

1997-1998

0.6%

9.7%

1.8%

-7.8%

2.5%

9.0%

1.4%

-8.4%

1.8%

1998-1999

0.1%

10.4%

5.5%

-6.5%

4.2%

10.3%

5.2%

-6.6%

4.2%

1999-2000

-0.1%

1.5%

6.6%

4.3%

2.7%

1.5%

6.7%

4.4%

2.7%

2000-2001

-0.4%

-1.3%

14.4%

5.9%

2.0%

-0.9%

14.8%

6.3%

2.3%

2001-2002

-0.4%

-0.6%

15.5%

5.3%

2.5%

-0.2%

15.9%

5.6%

2.9%

2002-2003

-0.2%

1.9%

8.2%

3.5%

3.0%

2.1%

8.3%

3.7%

3.2%

2003-2004

-0.3%

-8.8%

8.2%

16.6%

1.2%

-8.5%

8.5%

16.9%

1.5%

2004-2005

-0.3%

8.3%

3.0%

-6.5%

2.1%

8.6%

3.4%

-6.2%

2.4%

As you can see, there are some years, most notably 2000 to 2004, where the "State Aid" figures, adjusted for inflation, are mostly decreasing. The statement on the Kansas Families United for Public Education website, therefore, could be construed as true. But over the period 1994 to 2005, "State Aid" increased by 61%, while inflation increased by 41%. So to make that statement true, you have to be looking at only recent history.

Also, to make that statement true, you have to be looking at only a small part of the total picture. "State Aid" is only part of the total source of funds that schools have. Schools also receive money from "Federal Aid" and "Local Revenue." For 2004-2005, "State Aid" was 55% of the total spent on schools in Kansas, and for the period in the tables above, "State Aid" was 57.6% of total spending. When you consider the total amount spent, there is no year in which the increase in total spending was less than the rate of inflation for that year.

Then, there is even the larger picture. In recent years the number of students in Kansas has been declining. This means that the total spent per student increases at a faster rate than total spending.

Does it matter that "State Aid" might not be increasing as fast as total school spending? I don't think the schoolchildren in Kansas can tell. But I should not make such a hasty conclusion. Given the mountain of regulations that public schools must comply with, there may be restrictions on how funds from certain sources may be spent, and those regulations might mean that the total available for schools to spend can't be allocated optimally.

But I think I can safely conclude this: when advocates for school spending make the case that "State aid has failed to keep pace with inflation," we should examine the total picture

Source URL: http://wichitaliberty.org/node/208
Links: [1] http://fundourpublicschools.com [2] http://www.ksde.org/leaf/data_warehouse/total_expenditures/d0Stateexp.pdf
-- Bob Weeks bob.weeks@cox.net Website at http://wichitaliberty.org Wichita, KS 67226 316-636-9526 or 316-708-1837

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