Policy Research

Most States Still Funding Schools Less Than Before the Recession

Michael Leachman, Chris Mai

Summary

The article examines school funding on state levels both before and after the 2009 recession. The article argues that for most states school funding was cut during the recession but has still not rose to pre-recession levels despite an overall stronger economy. It continues that part of the explanation is that state that cut taxes during the recession have not since increased them proportionally, but have instead opted for a more politically popular spending cuts. The article continues to estimate that the decreases in educational quality brought about by the decreases in education spending will have a proportionally higher negative effect on future economic efficiency in the states. The study then continues further saying that cuts in state aid are difficult for local districts to cover on their own and that negative academic consequences are likely.

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Policy Implications

This article can be used in examining potential spending option, or educational policy. The article notes that although spending has steadily increased since the recession, the rate of increase is much slower than the rate of cuts initially made. This perceived lag effect could be utilized in trying to form policy that prevents such significant lags in crucial elements of growth, such as education. Overall, according to the study Michigan is 14th worst compared to other states in replacing education spending, and spending is $615 million lower than in 2007.