Special Report
Cities Spending the Most (and Least) per Student
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The Pocantico Hills Central School District in New York spends a whopping $61,029 per student, the most of any district. Conversely, the Graham Public Schools district in Oklahoma spends roughly one one-hundredth of the Pocantico Hills spending — just $648 per student — the least of any district. The relationship between spending and student achievement is a controversial one, but it is clear that there are significant differences in the quality of student experience between the best- and worst-funded districts.
Click here to see the best-funded districts
Click here to see the worst-funded districts
Through property taxes, an area’s wealth can translate into its school system. In districts where the median home value is over $600,000, education budgets are on average sourced 76% locally — from property taxes and parent contribution. State governments set monetary goals for per student spending, so when a district can achieve this goal through local property taxes, the state spends its resources elsewhere. Although these wealthy districts — primarily in New York, New Jersey, Connecticut, and California — forgo large amounts of state funding, they often spend double what the average American school district spends on its students.
Among the highest-spending districts, however, there is another group of school districts in addition to the hyper-wealthy areas. Five of the 10 biggest spending districts are located in Alaska. These high-spending Alaskan districts range from moderately wealthy to poor. For example, the Yukon Flats district — which has a median annual household income of just $27,014, much lower than the national median of $53,046 — still spends an average of $29,273 per student, the second most in the country.
In an interview with 24/7 Wall St., Michael Griffith, senior policy analyst with the Education Commission of the States — an education policy research group — explained that the high spending in Alaska has to do in part with the state’s unique, isolated geography, which raises the costs of everything from busing students to building maintenance costs. Four of the five districts that spend the most on support services, which include maintenance, transportation, and administrative costs, are in Alaska.
Griffith added that the state’s economy has had an impact on spending as well. “In Alaska, there is a higher cost of living, so they have to pay teachers a higher amount.” He added that the state has traditionally has had the resources to pay for more aid and better facilities, due in part to Alaska’s lucrative oil industry. “States that have the available dollars tend to be more generous to education” He added.
The costs for recruiting teachers in Alaska is augmented by the fact that other state districts are able to recruit easily from urban areas in the region, Griffith added, whereas Alaskan districts cannot. “They have got to do recruiting, They have to pay higher salaries and give premium benefits to get people into moving to these remote places in Alaska.”
While some of the best funded school districts are located in some of the wealthiest areas, this is not the case for the worst funded. School districts that spend the least per student are located in a mix of poor and mid-level income areas.. School districts in this poor- to mid-level income bracket often do not have the local property taxes to fund instructional and support services for its students and do not receive the state funding to offset low local funding. In California, where three of the 10 worst funded school districts are located, a complex educational funding scheme often fails to provide adequate resources to school districts, and areas of any income level are at risk of inadequate state sources.
While some relationship appears to exist between funding and educational outcomes, there appear to be many other factors that affect student achievement. In five of the worst-funded districts, graduation rates are in excess of 92%. In five of the best-funded states, less than 80% of a given class graduates high school. Sterling Lloyd, senior research associate at Education Week, explained, “There’s no consensus in the research about the precise role of school spending for student achievement. It’s a perennial debate. You can find studies that indicate there is a relationship between funding and student achievement, and you can find studies that say there isn’t a relationship. There really isn’t any consensus in the field.”
To identify the best and worst-funded school districts in America, 24/7 Wall St. reviewed the districts with the 10 highest and 10 lowest funding per pupil among the 9,627 U.S. school districts serving at least 250 students from the U.S. Census Bureau’s Survey of School System Finances. School spending figures and all other district-based values, are as of the end of 2013 and come from the U.S. Census Bureau’s Survey of School System Finances. Graduation rates come from National Center for Education Statistics (NCES).
These are the cities spending the most (and least) per student.
Correction: In a previous version of this article the source for annual per pupil expenditures was incorrectly cited as the U.S. Census Bureau’s American Community Survey (ACS). In fact, annual per pupil expenditures for U.S. school districts came from the U.S. Census Bureau’s Survey of School System Finances.
10. Tuckahoe Common School District, New York
> District spending per pupil: $33,734
> State spending per pupil: $19,818
> Median household income: $98,326
> Enrollment: 361
Tuckahoe Common School District spends $33,734 per pupil on average each year, about $13,000 more than the average across the state, and the 10th highest out of nearly 10,000 U.S. school districts. The school district is one of four top spenders based in New York. Also, like most districts with the highest expenditures, especially those in New York, area households are relatively wealthy. The typical household earns $98,326 annually, well above the national median household income of $53,046. While the precise link between high education spending and better outcomes is a contested issue, there may be a payoff in Tuckahoe Common. The district’s graduation rate of 89% was considerably better than the statewide rate of 76%. Also, more than 41% of adults in the Tuckahoe area have at least a bachelor’s degree, one of the highest attainment rates nationwide.
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9. Asbury Park City School District, New Jersey
> District spending per pupil: $33,881
> State spending per pupil: $17,572
> Median household income: $30,983
> Enrollment: 1,998
As in every other top-spending school district, Asbury Park City’s education expenditure of $33,881 per pupil is more than three times the nationwide average expenditure of $10,700 per student. Enrollment tends to be low in the school districts that spend the most, and while Asbury’s district enrollment of 1,998 is high compared to others on this list, the number of students has been declining. According to the Asbury Park Press, enrollment drops are the primary drivers of increased per pupil spending. Unlike most other top-spending school districts, Asbury Park’s median annual household income of $30,983 is one of the lowest in the nation, and despite the high spending, education outcomes are relatively poor. The area’s high school graduation rate of 67.8% was among the lowest in the nation. In addition, just 17.9% of adults have at least a bachelor’s degree, and 78.2% have at least a high school diploma, each some of the lower figures in the country.
8. Island Park Union Free School District, New York
> District spending per pupil: $35,416
> State spending per pupil: $19,818
> Median household income: $77,056
> Enrollment: 704
Just north of Long Beach on Long Island, the Island Park Free School District is one of the best-funded districts in the country. Each student’s education is worth $35,416 on average, more than triple the average for the nation. While the economic circumstances of most residents are relatively good, the educational outcomes are not particularly strong in the district. According to the most recent school district accountability report, fewer than half of third through eighth grade students met national English standards.
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7. Yupiit School District, Alaska
> District spending per pupil: $36,058
> State spending per pupil: $18,175
> Median household income: $36,979
> Enrollment: 448
The best-funded school districts are often quite wealthy. However, in some cases, the opposite is true. While the Yupiit School District has one of the nation’s highest education expenditures, it also has a poverty rate of 36.2%, and more than 55% of households rely on food stamps — each rate far higher than the respective national average rate. With low incomes and property values, funding contributions from local sources are relatively low. Federal sources, on the other hand, account for 47.4% of total district funding — one of the highest such figures in the country. Most federal government education resources are dedicated to special education services and other needs-based funding.
6. Aleutians East Borough School District, Alaska
> District spending per pupil: $36,380
> State spending per pupil: $18,175
> Median household income: $61,250
> Enrollment: 250
Across the country, school districts are funded by equal parts from local and state sources — about 45% each — and roughly 9% federal. The Aleutians East Borough School District, the sixth highest funded school district in the country, skews this trend. The district sources just 15% of its budget locally, gets 67.5% of its budget from state government, and 17.5% from federal sources. Despite the different funding scheme, the district manages to spend an average of $36,380 on each of its 250 students, $25,680 more than is spent on the average American student. Federal funds for education usually come as grants for special needs support services. The Aleutians school district spends $16,424 per student on such support services, the fifth most in the nation.
5. Montauk Union Free School District, New York
> District spending per pupil: $36,576
> State spending per pupil: $19,818
> Median household income: $68,528
> Enrollment: 323
In the Montauk Union Free School District, the median home value is $807,400, one of the highest of any district in the country. Likely as a result of the wealthy homes and the taxes collected on these properties, the district has the fifth largest educational budget in the country. With property taxes providing $16.0 million of the district’s $17.8 million budget, local sources account for nearly 90% of the district’s funding. The district spends $36,576 per student, $25,876 more than the average expenditure per student nationwide. In contrast, the state provides only 5.1% of the district’s budget, one of the lowest such shares in the nation.
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4. North Slope Borough School District, Alaska
> District spending per pupil: $37,211
> State spending per pupil: $18,175
> Median household income: $80,761
> Enrollment: 1,892
Households in the North Slope Borough District are fairly wealthy, and much of this wealth goes into the district’s well-funded schools. A typical household in the district makes $80,761 annually, about $27,700 more than the typical American household. Likewise, the district spends an average of $37,211 per student, about $26,500 more than what is spent on the average American student. Local sources account for 54.3% of the district’s budget, higher than the roughly 45% of funding that comes from local sources in the average American district. Despite spending the fourth most per student of any district in the country, North Slope Borough had a graduation rate of just 58.3%.
3. Lake And Peninsula School District, Alaska
> District spending per pupil: $42,160
> State spending per pupil: $18,175
> Median household income: $51,786
> Enrollment: 374
While the typical household in the Lake And Peninsula School District makes $51,786 — about $1,300 less than the typical American household — the district spends an average of $42,160 per student in instruction and support services a year, which is about $31,500 more than the average spending per student in the typical American school district. The large budget is supported by state and federal sources. Across the country, state and local sources each account for about 45% of district funding, with roughly 9% of funding coming from federal sources. However, in the Lake and Peninsula School District, just 9.6% is sourced locally. The state funds 64.4% of the budget and federal funds provide the remaining 25.9%. High federal funds generally come as grants for special needs support services. The district spends $20,930 on such services, and is one of the few districts to spend more on support services than on instruction.
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2. Yukon Flats School District, Alaska
> District spending per pupil: $47,448
> State spending per pupil: $18,175
> Median household income: $27,014
> Enrollment: 261
Yukon Flats School District is one of relatively few districts spending more on support services than on instruction. The district spends $23,582 per pupil on support services alone, the second highest such expenditure in the nation. This could be due to added transportation costs in Yukon and throughout the state. The district’s instructional spending of $22,238 per pupil annually is also very high — the fourth highest compared with the nearly 10,000 other school districts reviewed. But while spending in the district trails only Pocantico Hills, the area is one of the poorest in the nation. A typical Yukon Flats household earns less than $30,000 annually, and 32.1% of people live in poverty, double the national poverty rate.
1. Pocantico Hills Central School District, New York
> District spending per pupil: $61,029
> State spending per pupil: $19,818
> Median household income: $94,351
> Enrollment: 306
No school district spends anywhere close to Pocantico Hills Central School District on public education. At $61,029 per pupil, spending in the area is far higher than even the next highest spending district — it also has more than three times the average state per pupil expenditure and more than five times the national average expenditure. Households in the district are quite wealthy, with a median annual income of $94,351. In contrast, a typical American household earns about $53,000 a year. More than three-quarters of public school funding comes from local sources — partially from the high taxation revenue on area homes, which are some of the most valuable in the country. The median home value in Pocantico Hills is $593,500, versus the national median of $176,700. Another factor for the districts very high spending per pupil may be the small number of enrolled students. According to Michael Griffith, once student enrollment drops below 1,000 the costs of running a school will inflate per pupil spending. At last count, enrollment in Pocantico Hills was only 306.
The Worst Funded School Districts
10. Hanna Public Schools, Oklahoma
> District spending per pupil: $4,877
> State spending per pupil: $7,672
> Median household income: $28,750
> Enrollment: 310
Across the country, where the median household income is $53,046, schools are funded on average by equal parts from state and local sources — about 45% each — and 9% federal funding. In Oklahoma’s Hanna Public Schools district, where the typical household makes $28,750 a year, just 14.9% of total district funding is sourced locally. Federal funding accounts for 11.9% of the total district budget, and the remainder comes from state sources. Despite the large share of state subsidies, the district trails far behind the average Oklahoma school’s budget. The district spends an average of $4,877 per student a year, $2,795 less than the typical Oklahoma districts spends per student, and less than half the national average spending per student.
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9. Preston Joint School District 201, Idaho
> District spending per pupil: $4,835
> State spending per pupil: $6,791
> Median household income: $45,586
> Enrollment: 2,535
Idaho spends an average of $6,791 per student annually, the second least of all states, and about $3,900 less than the national average spending per student. The Preston Joint School District 201 spends even less — just $4,835 per student. Although the poverty rate is 10.9% — 4.5 percentage points less than the national poverty rate — the school district only sources 8.9% of its total budget locally. Federal funds make up 17% of the district’s budget, a source that typically accounts for only 9.1% of district funding. Idaho has the most school-age children per income-producing adult than any state except for Utah and Alaska, so it is unsurprising that it draws more from outside its own tax revenues to fund its schools.
8. Texhoma Independent School District, Texas
> District spending per pupil: $4,646
> State spending per pupil: $8,299
> Median household income: $55,938
> Enrollment: 376
Located just south of the Oklahoma state border, the Texhoma Independent School District is the most underfunded in Texas, and among the least funded nationwide. The district spends just $4,646 per student per year, less than half of the average American school district expenditure. While nationwide, an average school district draws 45.3% of its revenue from local sources, the Texhoma district gets more than 80% of its funding from local sources. Although the Texhoma Independent School District is the eighth least funded in the country, this doesn’t mean that all of its students are receiving low cost education. With only 51.2% of area students enrolled in private schools, the Texhoma Independent School District has the eighth lowest share of students receiving public educations on its budget.
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7. Waterford Unified School District, California
> District spending per pupil: $4,435
> State spending per pupil: $9,220
> Median household income: $52,792
> Enrollment: 3,883
Three of the ten most underfunded school districts in the country are located in California — and Waterford is one of them. The Waterford United School District spends $4,435 annually per student, less than half the amount the average American school district spends. While nationwide, an average school district draws 45.3% of its revenue from local sources, such as taxes and parent contributions, the Waterford district gets slightly less, at 37.2% of its funding from local sources. With such low funding per student, it may not be surprising that only 68% of Waterford adults have a high school diploma, a significantly smaller share than the 86% of American adults with a high school education.
6. Vassalboro, Maine
> District spending per pupil: $4,200
> State spending per pupil: $12,147
> Median household income: $47,661
> Enrollment: 1,212
The average Maine school district spends $12,147 per student a year, about $1,400 more than the average American school district. However, the Vassalboro school district spends far less — just $4,200 per student. Although the typical household income in the Vassalboro district of $47,661 is similar than the median household income for Maine’s school districts, it spends the sixth least on education per student of any district in the country. The district sources most of its funding, or 59.1%, from the state, 13.5 percentage points more than the typical school district. Local sources, such as taxes and parent contributions, account for 33% of funding.
5. Maricopa Unified School District, California
> District spending per pupil: $4,064
> State spending per pupil: $9,220
> Median household income: $37,125
> Enrollment: 858
Across the country, a school district’s funding comes from equal parts state and local sources — about 45% each — and roughly 9% federal sources. In California, state funding generally comprises roughly 55% of district funding where at least 90% of students attend public school because of a complex funding scheme in which the state government dictates which districts receive a majority of funds. The Maricopa Unified School District, which sources just 44.1% of its budget from state funds, is the fifth most underfunded district in the country. The district spends just $4,064 per student, $6,636 less than the national average. Possibly as a result, educational outcomes in the area are subpar. The district’s graduation rate was 28.4%.
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4. Lucerne Valley Unified School District, California
> District spending per pupil: $3,168
> State spending per pupil: $9,220
> Median household income: $29,968
> Enrollment: 2,585
With a median household income of $29,968, the Lucerne Valley Unified School District is the eleventh poorest in California. Low incomes do not necessarily lead to low district funding in California. Several similarly poor districts spend more than $11,000 per student in the state. The Lucerne Valley school district, however, is an exception, spending just $3,618 per student, $6,052 less than the California average. California has a complex education funding scheme, and districts in the state are subject to much variation in the funds they receive. Despite spending the fourth lowest amount per pupil in the country, Lucerne had a relatively high 92.7% graduation rate.
3. Scio School District 95, Oregon
> District spending per pupil: $2,195
> State spending per pupil: $9,543
> Median household income: $48,645
> Enrollment: 3,618
The Scio School District 95 spends an average of $2,195 per student a year, or $8,505 less than the average spending on the typical American student. Oregon’s Quality Education Model suggests adequate per pupil funding is $11,970, and the Scio district is $9,775 away from that goal. On average, local sources fund some 45% of American school districts’ budgets, the state funds another 45.6% of the budget, and roughly 9% are provided by federal sources. However, the Scio School District, which sources only 7.5% of its budget locally, leaves the income of its residents largely untapped. The median household income in the district of $48,645 is slightly higher than the median household income for all of Oregon districts of $46,447. The bulk of the funding is covered by state sources, which provide 89.1% of the district’s budget. Despite its relatively low spending on students, the district has above-average educational outcomes. The district’s graduation rate, at last count, was 99.2%.
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2. Middleton School District, New Hampshire
> District spending per pupil: $1,333
> State spending per pupil: $13,721
> Median household income: $58,472
> Enrollment: 300
New Hampshire invests a relatively large amount on education, spending $13,721 per student a year. However, the Middleton School District spends an average of just $1,333 per student, creating the largest gap between state and district spending levels of any district in the country. Most of this expense, $1,207, goes to support services. The district is relatively wealthy, and sources 47.8% of its funding from the state and 52.2% from local sources. However, some of this funding may have been squandered. The district has only 300 enrolled students, not enough for a middle and a high school, and pays tuition to send its students to the neighboring Farmington High School. The district recently filed complaint against Farmington for overcharging Middleton $1.4 million from 2007-2014 and is refusing to pay an owed $400,000. In light of this dispute, Middleton has recently approved plans to build its own school.
1. Graham Public Schools, Oklahoma
> District spending per pupil: $648
> State spending per pupil: $7,672
> Median household income: $40,221
> Enrollment: 1,917
Across the country, where the median household income is $53,046, schools are funded on average by equal parts from state and local sources — about 45% each — and roughly 9% federal funding. In Oklahoma’s Graham Public Schools district, where the typical household makes $40,221 each year, only 3.1% of total district funding is sourced locally. Federal funding also accounts for 3.1% of the total district budget, and the remaining 93.9% is covered by state funding. Despite its large share of state subsidies, the Graham Public Schools budget is far from the state’s average. The district spends the smallest amount of any district at just $648 per student a year, about $7,000 less than what the average Oklahoma school district spends on its students. The average expenditure of $10,700 per student nationwide would have satisfied budget requirements for more than 16 students in the district.
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