For the third consecutive year, total spending on public elementary and secondary education fell nationwide, according to a recent release from the U.S. Census Bureau. Spending per student totaled $10,608, roughly the same as the year before.
All figures are for fiscal year 2012, the latest year available.

New York was the nation’s top spender, at $19,552 per pupil. In fact, the nation’s highest spenders on education were disproportionately in the Northeast. Michael Leachman, director of state fiscal research at the Center on Budget and Policy Priorities, explained that spending can be driven by a range of factors, including state size, labor costs, and geography, noting that rural schools can often incur higher transportation costs.

Household earnings appear to play a major role in determining statewide school spending. The states that spent the most per student also had some of the wealthiest households. Median household income in all of the 10 top spending states was higher than the U.S. median.

Schools are funded primarily by property tax revenue. As a result, “high-income districts get a lot more money because of the difference in property tax wealth,” Leachman said. To compensate for inequality, states’ school funding formulas tend to distribute more money to low-income districts, where property values are likely to be much lower. However, as Leachman explained, this is not always the case, and some formulas can actually award less to poorer areas.

Nationally, 10% of school revenue came from the federal government, and roughly the same came from state sources and local sources. In the nation’s highest-spending states, local sources were more likely to account for high portions of expenditures, with little coming from the federal government. For instance, in Connecticut, one of the top spenders, 57% of funds came from local sources and just 5% from federal sources.

Increased spending on education often pays off, at least as measured by standardized tests. Based on a recent Education Week report, four of the top spending states were among the top five states in K-12 achievement. However, pouring money into school systems by no means guarantees success. Students in Delaware and Alaska, two of the top spenders, had below-average scores on the National Assessment for Educational Progress.

Educational attainment rates among adults were also higher in the states that spent more per student. Students in these states were much more likely to complete high school and go on to complete college. More than 30% of adults in the majority of the top-spending states had at least a bachelor’s degree. The national proportion is 29.1%.

Yahoo Homes is publishing the top-spending states in the gallery here. To see the methodology and to see the lowest-spending states, visit 247WallSt.com:

States spending the most on education

10. Maryland

> Spending per pupil: $13,608

> Total education spending: $13.7 billion (13th highest)

> Pct. with high school diploma: 89.1% (23rd highest)

> Median household income: $71,122 (the highest)

9. Delaware

> Spending per pupil: $13,864

> Total education spending: $1.8 billion (6th lowest)

> Pct. with high school diploma: 88.5% (25th lowest)

> Median household income: $58,415 (10th highest)

8. Rhode Island

> Spending per pupil: $14,005

> Total education spending: $2.2 billion (8th lowest)

> Pct. with high school diploma: 86.1% (17th lowest)

> Median household income: $54,554 (18th highest)

7. Massachusetts

> Spending per pupil: $14,142

> Total education spending: $15.6 billion (11th highest)

> Pct. with high school diploma: 89.7% (21st highest)

> Median household income: $65,339 (6th highest)

6. Wyoming

> Spending per pupil: $15,897

> Total education spending: $1.7 billion (5th lowest)

> Pct. with high school diploma: 91.7% (tied-5th highest)

> Median household income: $54,901 (17th highest)

5. Vermont

> Spending per pupil: $16,039

> Total education spending: $1.6 billion (3rd lowest)

> Pct. with high school diploma: 91.7% (tied-5th highest)

> Median household income: $52,977 (20th highest)

4. Connecticut

> Spending per pupil: $16,273

> Total education spending: $9.9 billion (20th highest)

> Pct. with high school diploma: 89.9% (18th highest)

> Median household income: $67,276 (4th highest)

3. New Jersey

> Spending per pupil: $17,266

> Total education spending: $26.6 billion (5th highest)

> Pct. with high school diploma: 88.3% (24th lowest)

> Median household income: $69,667 (2nd highest)

2. Alaska

> Spending per pupil: $17,390

> Total education spending: $2.4 billion (9th lowest)

> Pct. with high school diploma: 92.0% (3rd highest)

> Median household income: $67,712 (3rd highest)

1. New York

> Spending per pupil: $19,522

> Total education spending: $58.8 billion (2nd highest)

> Pct. with high school diploma: 85.3% (15th highest)

> Median household income: $56,448 (15th highest)