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In 2009, the federal government passed the American Recovery and Reinvestment Act (ARRA) to combat the effects of the Great Recession and state revenue shortfalls, directing over $97 billion to school districts. In this chapter, we draw lessons from this distribution of fiscal stimulus funding to inform future federal intervention in school finance during periods of economic downturn. We find that district spending declined by $945 per pupil per year following the Great Recession, particularly after a stimulus funding cliff when ARRA funding declined. Spending declines varied more within than across states, while stimulus funding was directed to districts through pre-Recession state funding formulae which varied in their relative progressivity. Spending losses were greater in districts serving fewer shares of students qualifying for free or reduced-price lunch or special education services, in districts with higher-achieving students, and in districts with greater levels of spending prior to the Great Recession; declines were unassociated with district’s racial/ethnic composition, the share of English language learners, or a district’s reliance on state aid. We conclude by identifying different stimulus policy targets and with recommendations regarding the magnitude and distribution of future federal fiscal stimulus funding, lessons relevant to the COVID-19-induced recession and beyond.
Levels of governance (the nation, states, and districts), student subgroups (racially and ethnically minoritized and economically disadvantaged students), and types of resources (expenditures, class sizes, and teacher quality) intersect to represent a complex and comprehensive picture of K-12 educational resource inequality. Drawing on multiple sources of the most recently available data, we describe inequality in multiple dimensions. At the national level, racially and ethnically minoritized and economically disadvantaged students receive between $30 and $800 less in K-12 expenditures per pupil than White and economically advantaged students. At the state and district levels, per-pupil expenditures generally favor racially and ethnically minoritized and economically disadvantaged students compared to White and economically advantaged students. Looking at nonpecuniary resources, minoritized and economically disadvantaged students have smaller class sizes than their subgroup counterparts in the average district, but these students also have greater exposure to inexperienced teachers. We see no evidence that district-level spending in favor of traditionally disadvantaged subgroups is explained by district size, average district spending, teacher turnover, or expenditures on auxiliary staff, but Black and Hispanic spending advantage is correlated with the relative size of the Black and Hispanic special education population.
Adequately saving for retirement requires both planning and knowledge about available retirement savings options. Teachers participate in a complex set of different plan designs and benefit tiers, and many do not participate in Social Security. While teachers represent a large part of the public workforce, relatively little is known regarding their knowledge about and preparation for retirement. We administered a survey to a nationally representative sample of teachers through RAND’s American Teacher Panel and asked teachers about their retirement planning and their employer-sponsored retirement plans. We find that while most teachers are taking steps to prepare for retirement, many teachers lack the basic retirement knowledge necessary to plan effectively. Teachers struggled to identify their plan type, how much they are contributing to their plans, retirement eligibility ages, and who contributes to Social Security. These results suggest that teacher retirement reform may not be disruptive for teachers and that better, simpler, and clearer information about teacher retirement plans would be beneficial.
Principals shape the academic setting of schools. Yet, there is limited evidence on whether principal professional development improves schooling outcomes. Beginning in 2008-09, Pennsylvania’s Inspired Leadership (PIL) induction program required that newly hired principals complete targeted in-service professional development tied to newly established state leadership standards within five years of employment. Using panel data on all Pennsylvania students, teachers, and principals, we leverage variation in the timing of PIL induction across principal-school cells and employ difference-in-differences and event study strategies to estimate the impact of PIL induction on teacher and student outcomes. We find that PIL induction increased student math achievement through improvements in teacher effectiveness, and that the effects of PIL induction on teacher effectiveness were concentrated among the most economically disadvantaged and urban schools in Pennsylvania. Principal professional development had the greatest impact on teacher effectiveness when principals completed PIL induction during their first two years in the principalship. We also find evidence that teacher turnover declined in the years following the completion of PIL induction. We discuss the implications of our findings for principal induction efforts.
U.S. public school students increasingly attend schools with sworn law enforcement officers present. Yet, little is known about how these school resource officers (SROs) affect school environments or student outcomes. Our study uses a fuzzy regression discontinuity (RD) design with national school-level data from 2014 to 2018 to estimate the impacts of SRO placement. We construct this discontinuity based on the application scores of nearby police agencies for federal school-based policing grants. We find that SROs do effectively reduce some forms of violence in schools, but do not prevent school shootings or gun-related incidents. We also find that SROs intensify the use of suspensions, expulsions, police referrals, and arrests of students. These effects are consistently over two times larger for Black students than White students. Finally, we observe that SROs increase chronic absenteeism, particularly for students with disabilities.
We examine all known "credibly causal" studies to explore the distribution of the causal effects of public K-12 school spending on student outcomes in the United States. For each of the 31 included studies, we compute the same marginal spending effect parameter estimate. Precision-weighted method of moments estimates indicate that, on average, a $1000 increase in per-pupil public school spending (for four years) increases test scores by 0.0352 standard deviations, high school graduation by 1.92 percentage points, and college-going by 2.65 percentage points. These pooled averages are significant at the 0.0001 level. When benchmarked against other interventions, test score impacts are smaller than those on educational attainment -- suggesting that test-score impacts understate the value of school spending.
The benefits to marginal capital spending increases take about five years to materialize, and are about half as large as (and less consistently positive than) those of non-capital-specific spending increases. The marginal spending impacts for all spending types are less pronounced for economically advantaged populations -- though not statistically significantly so. Consistent with a cumulative effect, the educational attainment impacts are larger with more years of exposure to the spending increase. Average impacts are similar across a wide range of baseline spending levels and geographic characteristics -- providing little evidence of diminishing marginal returns at current spending levels.
To assuage concerns that pooled averages aggregate selection or confounding biases across studies, we use a meta-regression-based method that tests for, and removes, certain biases in the reported effects. This approach is straightforward and can remove biases in meta-analyses where the parameter of interest is a ratio, slope, or elasticity. We fail to reject that the meta-analytic averages are unbiased. Moreover, policies that generate larger increases in per-pupil spending tend to generate larger improvements in outcomes, in line with the pooled average.
To speak to generalizability, we estimate the variability across studies attributable to effect heterogeneity (as opposed to sampling variability). This heterogeneity explains between 76 and 88 percent of the variation across studies. Estimates of heterogeneity allow us to provide a range of likely policy impacts. Our estimates suggest that a policy that increases per-pupil spending for four years will improve test scores and/or educational attainment over 90 percent of the time. We find evidence of small possible publication bias among very imprecise studies, but show that any effects on our precision-weighted estimates are minimal.
This paper examines how financial aid reform based on postsecondary institutional performance impacts student choice. Federal and state regulations often reflect concerns about the private, for-profit sector's poor employment outcomes and high loan defaults, despite the sector's possible theoretical advantages. We use student level data to examine how eliminating public subsidies to attend low-performing for-profit institutions impacts students' college enrollment and completion behavior. Beginning in 2011, California tightened eligibility standards for their state aid program, effectively eliminating most for-profit eligibility. Linking data on aid application to administrative payment and postsecondary enrollment records, this paper utilizes a differences-in-differences strategy to investigate students' enrollment and degree completion responses to changes in subsidies. We find that restricting the use of the Cal Grant at for-profit institutions resulted in significant state savings but led to relatively small changes in students' postsecondary trajectories. For older, non-traditional students we find no impact on enrollment or degree completion outcomes. Similarly, for high school graduates, we find that for-profit enrollment remains strong. Unlike the older, non-traditional students, however, there is some evidence of declines in for-profit degree completion and increased enrollment at community colleges among the high school graduates, but these results are fairly small and sensitive to empirical specification. Overall, our results suggest that both traditional and non-traditional students have relatively inelastic preferences for for-profit colleges under aid-restricting policies.
Sixty-seven school finance reforms (SFRs), a combination of court-ordered and legislative reforms, have taken place since 1990; however, there is little empirical evidence on the heterogeneity of SFR effects. In this study, we estimate the effects of SFRs on revenues and expenditures between 1990 and 2014 for 26 states. We find that, on average, per pupil spending increased, especially in low-income districts relative to high-income districts. However, underlying these average effect estimates, the distribution of state-level effect sizes ranges from negative to positive---there is substantial heterogeneity. When predicting SFR impacts, we find that multiple state-level SFRs, union strength, and some funding formula components are positively associated with SFR effect sizes in low-income districts. We also show that, on average, states without SFRs adopted funding formula components and increased K-12 state revenues similarly to states with SFRs.
Education savings accounts (ESAs) are education funding mechanisms that allow for families to receive a deposit of public funds to a government-authorized savings account. Using student-level longitudinal data, this paper examines how families participating in the Florida Gardiner Scholarship Program use education savings account funds. Results indicate that families use an increasing proportion of ESA funds the longer students remain in the program. The longer students remain in the program, the share of ESA funds devoted to private school tuition decreases while expenditure shares increase for curriculum, instruction, tutoring, and specialized services. Students in rural areas not only use a greater portion of their ESA funds than families in urban and suburban areas, but they also spend smaller portions of their funds on tuition and appear to customize more.