Do School Districts Allocate Funding Equitably to Schools?

Abstract

Inequitable distribution of school funds may underlie persistent achievement disparities across class and race in the U.S. Significant reforms in school finance have closed funding disparities between school districts, but inequitable practices within districts, in which funds fail to reach the students in greatest need, may be undermining progress. Unavailability of school-level funding data previously limited assessments of intra-district allocations of funding.The primary aim of this study was to assess intra-district finance equity–exploring funding distribution patterns across multiple dimensions of student need and race–using recently released national school-level expenditures data. Multilevel analyses decomposed variation in total per pupil expenditures within and between districts while adjusting for state differences, and jointly assessed intra- and inter-district finance equity by exploring how school shares of students across poverty status, limited English proficiency, special education identification, and race were associated with per pupil expenditures. Analyses also investigated whether intra-district distribution patterns varied across district-level economic and racial strata. Results revealed significant variation in per pupil expenditures across schools within districts, and found that on average, intra-district funding distributions were progressive toward higher poverty schools as well as schools with more special education students, but not toward schools with more English language learners. School proportions of underrepresented minority students were not associated with differences in per pupil expenditures. Intra-district funding distribution patterns both reflected and counteracted inter-district patterns, depending on the dimension of student need. Exploring variations in intra-district patterns across district characteristics, analyses found that higher district poverty and economic segregation were associated with lower levels of progressivity in intra-district distributions, though not along all dimensions of need. Higher concentrations of underrepresented minority students and racial segregation in districts were not associated with intra-district distribution patterns for race, but were associated with intra-district progressivity across other dimensions of need. Study findings call for a comprehensive approach to assessing and advancing school finance equity, in order to ensure equal opportunity for all students.