ERIC Number: ED406735
Record Type: RIE
Publication Date: 1996-Dec
Education Spending Faces Demographic and Other Pressures. State Fiscal Brief, No. 38.
Liebschutz, David S.; Boyd, Donald J.
State and local government spending on public elementary and secondary education grew from $40.7 billion in 1970 to an estimated $256.3 billion in 1996, a more than 6-fold increase in 25 years. Even when adjusted for inflation and changes in enrollment, real per-pupil spending still increased 86 percent. This brief examines some of the underlying causes for the increase in education spending and discusses the outlook for the future. There are several factors responsible for the rapid growth in spending, including broadly expanded special and vocational education programs, increased teacher salaries, and increased equipment needs. Before exploring those factors, however, the brief describes how spending increased, especially relative to the size of the economy. The brief focuses on enrollment shifts, changes in spending, growth rates, and fiscal impacts. The data show that special education programs appear to have consumed a disproportionate share of new education resources and that education expenditures vary widely across states. The outlook for the future is continued but moderately slowing growth and a shift in enrollment pressure from elementary to secondary schools. Other issues that will affect education--special education, price increases, teacher retirements, higher education standards, a longer school year, capital needs, and technological advancement--will lead to higher costs for education, suggesting continued pressure on education budgets. A sidebar describes changing school district resource allocations in New York State. Contains 6 figures, 6 tables, and 23 endnotes. (LMI)
Publication Type: Collected Works - Serials; Numerical/Quantitative Data
Education Level: N/A
Authoring Institution: State Univ. of New York, Albany. Nelson A. Rockefeller Inst. of Government. Center for the Study of the States.