Coate Vanderhoff 1999

Public School Spending and Student Achievement

Overview

• Authors: Douglas Coate and James VanderHoff, Professors of Economics at Rutgers University.

• Context: Historical perspective of public school legislation in the U.S. since 1647; initial local financing and control.

Historical Background

• Legislation Development:

  • 1647: Massachusetts Bay Colony mandates hiring teachers in towns of at least 50 families and grammar schools in those with 100 families.

  • 1920: 80% of public school revenue comes from local taxes.

  • 1996: Local revenue is 43% of public school funding; state governments fund about half.

Inequality in Funding

• Court Influences:

  • Serrano v. Priest (1971): California Supreme Court declared unequal funding based on property taxes unconstitutional.

  • San Antonio Independent School District v. Rodriguez (1973): U.S. Supreme Court upheld local control and funding disparities in education.

• Resulting Legal Battles: Challenges to local financing have arisen in all states, particularly New Jersey, where legal proceedings continue to evaluate school funding and student performance.

Implications of Increased Funding

• Objective of Research: Analyze the effect of increased educational expenditures on student achievement, especially in poor urban districts.

• Funding as a Legal Goal: Increased state funding to poorer districts is a central objective of ongoing legal challenges regarding educational finance.

Previous Research Findings

• Hanushek (1986, 1989, 1997): No systematic relationship found between increased education expenditures and student performance; expenditure increases did not lead to improved achievement.

• Contrasting Opinions: Krueger (1998) presents opposing evidence that increased funding does correlate with improved academic performance.

New Jersey Litigation History

• Constitutional Requirement: New Jersey's constitution mandates a thorough and efficient public education system.

• Robinson v. Cahill (1973): Public school financing's reliance on property tax deemed unconstitutional due to funding disparities.

• Abbott v. Burke (1990): Requires state to provide equal funding for the poorest districts comparable to affluent districts; identifies 28 districts as needing substantial funding.

• Results of Legal Mandates: Post-Abbott funding did not yield corresponding improvements in student achievement, raising questions about expenditure effectiveness.

Recent Findings from New Jersey

• Data Source: New Jersey Department of Education's report cards from 1988-89, 1992-93, and 1994-95.

• Research Methods: Analyzed relationships between per pupil expenditures, student characteristics, and community factors, recognizing bidirectional influences between expenditures and achievement.

  • Key Variables: Race, ethnicity, income, college degree attainment in community, and student mobility.

Statistical Analysis Results

• Regression Findings:

  • Student demographic factors explain 67-83% of the variation in achievement.

  • Adding per pupil expenditures does not enhance explanatory power or close achievement gaps.

  • No significant positive relationship detected between expenditures and student performance.

Conclusion

• Legal Context: Court decisions affirm local control over educational spending, complicating state funding models.

• Findings Summary: No positive correlation between spending and achievement; thus, increased expenditures may not be the solution to educational disparities.

• Future Recommendations: Consider a more competitive education system with charter schools and vouchers to improve educational outcomes while using resources more efficiently.