![]() In other words, money must be spent wisely to yield benefits. Clearly, there are other factors that may moderate the influence of funding on student outcomes, such as how that money is spent. The size of this effect is larger in some studies than in others, and, in some cases, additional funding appears to matter more for some students than for others. On average, aggregate measures of per-pupil spending are positively associated with improved or higher student outcomes. Regarding these three questions, I conclude:ĭoes money Matter? Yes. In the following brief, I discuss major studies on three specific topics: (a) whether how much money schools spend matters (b) whether specific schooling resources that cost money matter and (c) whether substantive and sustained state school finance reforms matter. These positions, however, have little basis in the empirical research on the relationship between funding and school quality. Such proclamations have even been used to justify large cuts to education budgets over the past few years. Increasingly, political rhetoric adheres to the unfounded certainty that money doesn’t make a difference in education, and that reduced funding is unlikely to harm educational quality. It includes research released since the original brief in 2012 and covers a handful of additional topics. This second edition policy brief revisits the long and storied literature on whether money matters in providing a quality education. The executive summary is pasted directly below. It has been updated by the author.īaker concludes that, despite recent rhetoric, “on average, aggregate measures of per-pupil spending are positively associated with improved or higher student outcomes,” while “schooling resources which cost money … are positively associated with student outcomes.” Finally, reviewing the high-quality evidence on the effect of school finance reforms, he asserts: “Sustained improvements to the level and distribution of funding across local public school districts can lead to improvements in the level and distribution of student outcomes.” This is the second edition of the report originally released in 2012. This report presents a comprehensive review of the high-quality empirical evidence on whether and how money matters in education, written by Rutgers Professor Bruce Baker. UPDATE (April 2019) : Also see our new report and public database on state school finance systems in the U.S. ![]()
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