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School district operational spending and student outcomes: Evidence from tax elections in seven states

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  • Abott, Carolyn
  • Kogan, Vladimir
  • Lavertu, Stéphane
  • Peskowitz, Zachary

Abstract

We use close tax elections to estimate the impact of school district funding increases on operational spending and student outcomes across seven states. Districts with passing levies directed new revenue toward support services and instructor salaries but did not increase teacher staffing levels. These districts eventually realized gains in student achievement and attainment. Our preferred estimates imply that increasing operational spending by $1000 per pupil increased test scores by approximately 0.15 of a standard deviation and graduation rates by approximately 9 percentage points. There is some evidence of diminishing returns, as these effects are driven by districts below the median in spending per pupil. Based on research linking academic outcomes to earnings, we conclude that these spending increases were likely cost-effective.

Suggested Citation

  • Abott, Carolyn & Kogan, Vladimir & Lavertu, Stéphane & Peskowitz, Zachary, 2020. "School district operational spending and student outcomes: Evidence from tax elections in seven states," Journal of Public Economics, Elsevier, vol. 183(C).
    • Handle: RePEc:eee:pubeco:v:183:y:2020:i:c:s0047272720300062
    DOI: 10.1016/j.jpubeco.2020.104142
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    References listed on IDEAS

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    Cited by:

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    2. María Orduz, 2022. "Effect of educational spending on academic performance under different institutional arrangements," Documentos CEDE 20224, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Francesco Ruggieri, 2023. "Dynamic Regression Discontinuity: A Within-Design Approach," Papers 2307.14203, arXiv.org.
    4. Nicolai T. Borgen & Lars J. Kirkebøen & Andreas Kotsadam & Oddbjørn Raaum, 2022. "Do funds for more teachers improve student outcomes?," Discussion Papers 982, Statistics Norway, Research Department.
    5. Biasi, Barbara & Lafortune, Julien & Schönholzer, David, 2024. "What Works and for Whom? Effectiveness and Efficiency of School Capital Investments across the U.S," IZA Discussion Papers 16713, Institute of Labor Economics (IZA).
    6. Danielle V. Handel & Eric A. Hanushek, 2023. "Contexts of Convenience: Generalizing from Published Evaluations of School Finance Policies," NBER Working Papers 31653, National Bureau of Economic Research, Inc.
    7. Brunner, Eric & Hoen, Ben & Hyman, Joshua, 2022. "School district revenue shocks, resource allocations, and student achievement: Evidence from the universe of U.S. wind energy installations," Journal of Public Economics, Elsevier, vol. 206(C).
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    9. Barbara Biasi & Julien Lafortune & David Schönholzer, 2024. "What Works and for Whom? Effectiveness and Efficiency of School Capital Investments across the U.S," CESifo Working Paper Series 10884, CESifo.
    10. Wenjie Yu & Hongfan Ma, 2022. "Expenditure Responsibility Assignment and High-Quality Equity of Compulsory Education—Empirical Analysis Based on OECD Countries," Sustainability, MDPI, vol. 14(17), pages 1-12, August.
    11. Cook, Jason & Lavertu, Stéphane & Miller, Corbin, 2021. "Rent-Seeking through collective bargaining: Teachers unions and education production☆," Economics of Education Review, Elsevier, vol. 85(C).

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    More about this item

    Keywords

    Student achievement; Education finance; School districts; Tax elections;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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