Funding for K–12 schools
WIKIPEDIA | 2014-05-22 16:41
According to a 2005 report from the OECD, the United States is tied for first place with Switzerland when it comes to annual spending per student on its public schools, with each of those two countries spending more than $11,000. However, the United States is ranked 37th in the world in education spending as a percentage of gross domestic product. All but seven of the leading countries are in developing countries; ranked high because of a low GDP.

The federal government contributes money to certain individual school districts as part of Federal Impact Aid. The original idea was that the federal government paid no local real estate taxes on their property to support local schools. Children of government employees might move in and impact an area which required expenditure for education at the local level. This aid was a way of equalizing the unexpected impact.

According to a 2006 study by the conservative Goldwater Institute, Arizona's public schools spend 50% more per student than Arizona's private schools. The study also says that while teachers constitute 72% of the employees at private schools, they make up less than half of the staff at public schools.

According to a 1999 article by William J. Bennett, former U.S. Secretary of Education, increased levels of spending on public education have not made the schools better. Among many other things, the article cites the following statistics:
•    Between 1960 and 1995, U.S. public school spending per student, adjusted for inflation, increased by 212%.
•    In 1994, less than half of all U.S. public school employees were teachers.

Funding for schools in the United States is complex. One current controversy stems much from the No Child Left Behind Act. The Act gives the Department of Education the right to withhold funding if it believes a school, district, or even a state is not complying with federal plans and is making no effort to comply. However, federal funding accounts for little of the overall funding schools receive. The vast majority comes from the state government and in some cases from local property taxes.

Property taxes as a primary source of funding for public education have become highly controversial, for a number of reasons. First, if a state's population and land values escalate rapidly, many longtime residents may find themselves paying property taxes much higher than anticipated. In response to this phenomenon, California's citizens passed Proposition 13 in 1978, which severely restricted the ability of the Legislature to expand the state's educational system to keep up with growth. Some states, such as Michigan, have investigated or implemented alternate schemes for funding education that may sidestep the problems of funding based mainly on property taxes by providing funding based on sales or income tax. These schemes also have failings, negatively impacting funding in a slow economy.

One of the biggest debates in funding public schools is funding by local taxes or state taxes. The federal government supplies around 8.5% of the public school system funds, according to a 2005 report by the National Center for Education Statistics. The remaining split between state and local governments averages 48.7 percent from states and 42.8 percent from local sources. However, the division varies widely. In Hawaii local funds make up 1.7 percent, while state sources account for nearly 90.1 percent.

Rural schools struggle with funding concerns. State funding sources often favor wealthier districts. The state establishes a minimum flat amount deemed "adequate" to educate a child based on equalized assessed value of property taxes. This favors wealthier districts with a much larger tax base. This, combined with the history of slow payment in the state, leaves rural districts searching for funds. Lack of funding leads to limited resources for teachers. Resources that directly relate to funding include access to high-speed internet, online learning programs and advanced course offerings. These resources can enhance a student's learning opportunities, but may not be available to everyone if a district cannot afford to offer specific programs. One study found that school districts spend less efficiently in areas in which they face little or no competition from other public schools, in large districts, and in areas in which residents are poor or less educated.
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