The impact of increasing education spending: a study in seven US states

A recent study published in the Journal of Economics examined the effects of increasing education spending on pupil achievement in more than 3,000 diverse school districts in seven US states: Arkansas, Louisiana, Michigan, Missouri, Pennsylvania, Texas and Wisconsin. Money for the increased spending was obtained via increases in property tax, sales tax and income tax – issues that had been placed on ballots and voted into effect.

Data for the study encompassed the years 2000–2015. Results showed that five to seven years after education spending increased by $1,000 per pupil, pupils in districts who had formerly been below the average in spending per pupil had gained +0.15 on standardised testing and showed a 9% increase in graduation rates. No statistically significant differences were found for pupils at or above the average spending per pupil prior to the tax increases.

Source: School district operational spending and student outcomes: Evidence from tax elections in seven states (March 2020), Journal of Economics, Volume 183