School Finance

Recent trends in U.S. education finance show a leveling off of per pupil spending for education combined with increasing enrollment in public elementary and secondary schools. Meanwhile, schools face an increasing number of poor children and others at high risk of school failure--students whose education costs are generally greater than average. Moreover, education's share of state budgets has declined, and federal education funding faces tight fiscal constraints. If these trends continue, America may be less able to provide adequate educational services for many school-age children or make needed improvements in the educational system.

GAO found that: (1) since 1980, total real expenditures in public elementary and secondary schools have increased, while the average national per pupil expenditure increased then stabilized after 1989; (2) total public expenditures for elementary and secondary education increased by 40 percent to $254.4 billion from the 1979-1980 school year to the 1992-1993 school year; (3) the number of poor children attending elementary and secondary schools has increased, and the cost of educating these and other at-risk children is higher than educating those not at risk; (4) the average per pupil expenditure for elementary and secondary students has leveled off after years of increase; (5) the average per pupil expenditure in school year 1992-1993 was $5,296; (6) the portion of state budgets designated for elementary and secondary education decreased between fiscal years 1987 and 1994; (7) states' ability to raise revenues for education grew more slowly than their willingness to raise revenues for overall spending; and (8) state and local governments feel more pressure to increase education spending in less wealthy school districts.