Education Spending

Pennsylvania school districts spent $27.4 billion in 2014-15, an all-time high, according to the latest data from the Pennsylvania Department of Education. This represents a $1.3 billion increase from 2013-14.

Districts spent nearly $16,000 per student in 2014-15, up from $15,019 in 2013-14. Total education spending steadily increased over the last five years, save for 2011-12 upon the expiration of temporary federal stimulus dollars.

<<Get the full Education Spending Trends Policy Memo>>




Recent Issues

Is Your School Hoarding Cash? 42% of Districts Hold Questionable Reserves

JUNE 16, 2016 | News Release by COMMONWEALTH FOUNDATION

School district reserves total $4.3 billion statewide. When cries for more school funding—and property tax increases—are constant, how much is too much to hold in reserve?

'Underfunded' Pa. Schools Spend Nearly $16,000 Per Pupil

JUNE 14, 2016 | News Release by COMMONWEALTH FOUNDATION

Contradicting the claim that Pennsylvania underfunds its school system, public school spending hit an all-time high in the 2014-15 school year, approaching $27.4 billion—or $15,854 per student—according to the latest state Department of Education data.

School Spending Update, 2014-15

JUNE 8, 2016 | Policy Memo by JAMES PAUL

Pennsylvania school districts spent approximately $27.4 billion in 2014-15. This represents a $1.3 billion increase from 2013-14, despite a 12,000 student decrease in average daily membership.





Recent Blog Posts

Saving for a Rainy Day – But Whose Money?

JULY 25, 2016

Let’s talk for a moment about rainy days—specifically, the need to save funds to spend on one. Several school board administrators and lobbyists have taken issue with CF’s searchable, sortable database of school district fund balances, showing public schools are sitting on over $4 billion in "rainy day funds." Meanwhile, 85 percent of school districts plan to raise property taxes.

A Temple University report, authored by a former Pennsylvania School Boards Association employee, argues:

Just as an individual or family should maintain a savings account for unforeseen expenses or emergencies, school districts should also have funds in reserve to pay for emergency repairs or cover unexpected interruptions in revenues – such as a layoff at a major factory which suddenly affects tax collections.

If an individual or family could impose real estate taxes on their friends and neighbors, this analogy might pass muster. But an obvious difference exists between families socking away their own hard-earned money in a savings account and a school board severely over-taxing its district. The CF database shows 21 districts with over 50 percent (!) of their total expenditures squirreled away in reserve.

Every dollar held in excess by a school board is money earned by taxpayers that could otherwise be saved, invested, or spent by taxpayers. While some school districts stock up reserve funds, thousands of Pennsylvanians struggle to balance their family budgets.

Typically, the school board lobby defends excessive reserves by drawing an ironclad distinction between unassigned funds and assigned or committed funds. As CF explained in an earlier blog:

A district’s fund balance—what it owns minus it what it owes—is comprised of assigned, committed, and unassigned funds. Assigned and committed reserves are available funds designated for a specific purpose, while unassigned funds are available for any purpose.

School board directors argue the public should only scrutinize unassigned funds, since assigned and committed funds have already been earmarked. [For example, the Temple University report focuses solely on unassigned funds. Other funds are largely ignored.] They fail to mention, however, how easily money can be shifted among the three funds—often with a mere majority vote at the next board meeting.

The CF database anticipates this line of argument—and provides both total and unassigned reserve funds as a percent of expenditures. You’ll notice many districts keep their unassigned funds stocked to the legally mandated maximum amount at which they can still raise taxes, between 8 and 12 percent of total expenses, depending on district size.

Whether school boards should be judged on all reserve funds or simply unassigned funds is ultimately for taxpayers to determine. But the fact remains that dozens of Pennsylvania districts amassed large rainy day funds while also seeking tax increases.

What’s more, the Temple University report makes no mention of school districts’ capital reserve funds—yet another pot of money districts use to plan for construction projects.

Drawing attention to reserve funds is critical in order to increase transparency and raise awareness for taxpayers. While few school districts are sitting on a “pot of gold,” Pennsylvanians have a right to know that almost all districts enjoy alternatives to higher taxes.

posted by JAMES PAUL | 11:50 AM | Comments

2015 SAT Scores

JUNE 29, 2016

The SAT, or Scholastic Aptitude Test, is an important indicator of public education quality in Pennsylvania. Currently, the commonwealth ranks 36th out of the 50 states and 3 US territories (Washington DC, Puerto Rico, and US Virgin Islands). That's one place higher than last year.

A large percentage of Pennsylvania students take the SAT, which does contribute to low overall performance. Average SAT scores are higher in states with lower test participation, typically because only the highest performing students sit for the test. Among states with a participation rate of at least 70 percent, Pennsylvania ranks 6th.

Historical data shows SAT scores are largely unchanged since 1970. Meanwhile, state education spending per student has increased 63 percent. This long-term trend undermines constant calls for more education spending to improve public schools.

To increase student achievement, we must change focus from more spending to reforms that change how tax dollars are spent. One such reform is the creation of education savings accounts, which will give parents stronger control over how, and where, their son or daughter will best succeed.

Below is a table of all states scores and participation rates. Details on Pennsylvania’s statewide performance report can be found here.

posted by HUNTER AHRENS, ELIZABETH STELLE | 11:45 AM | Comments

School Districts Amass Record Reserve Funds

JUNE 15, 2016

Is your local school board planning to raise property taxes despite holding millions in reserve funds? For many Pennsylvania school districts, the answer may be “yes.”  

Check out CF's sortable, searchable database of fund balances for Pennsylvania’s 500 school districts in the 2014-15 school year. It is important to note these figures predate the 9 month budget impasse, during which Gov. Wolf held school districts hostage in an attempt to extract record-high tax hikes from families and businesses.

Many districts were forced to dip into their reserves last year, as a result of Gov. Wolf's actions. (Next summer's financial reports will reveal how much districts were forced to "spend down"). But the sheer size of reserve funding in certain school districts is staggering—especially given the constant drumbeat that Pennslyvania schools are "underfunded." 

A district’s fund balance—what it owns minus it what it owes—is comprised of assigned, committed, and unassigned funds. Assigned and committed reserves are available funds designated for a specific purpose, while unassigned funds are available for any purpose.

State law requires that districts seeking tax hikes limit their unassigned fund balances to 8 to 12 percent of total spending. Our sortable database includes the total fund balance for each district, as well as each district’s total expenditures in 2014-15. It also includes each district’s fund balance as a percentage of total expenditures.

Auditor General Eugene DePasquale, speaking to Jan Murphy of Pennlive, says it is excessive to maintain a fund balance greater than 20 percent of total expenditures:

More than 300 of the 747 districts, charter schools and career and technical centers included in the department's data had fund balances topping 20 percent of their total expenditures, which is where state Auditor General Eugene DePasquale said he believes the line should be drawn.

"It is a judgment call as to what is too high," DePasquale said. "Certainly anything that is above 20 percent, clearly that's where you start to question it."

In fact, there are 21 districts who have socked away over 50 percent (!) of their total expenditures in reserve. When looking only at unassigned fund balances, 36 districts have over 20 percent of total expenditures squirreled away.

These figures should be eye-opening to anyone who believes Pennsylvania schools are unfunded—and they should be a wakeup call for school board officials who instinctively seek higher taxes from state or local taxpayers.

Check out CF's sortable, searchable database.

 

 

 

Largest Fund Balances
As % of Expenditures

District

County

%

Southern Fulton

Fulton

84.93%

Northwestern

Erie

78.07%

Union

Clarion

76.26%

Brockway Area

Jefferson

75.64%

Salisbury-Elk Lick

Somerset

73.26%

West Jefferson Hills

Allegheny

71.67%

Commodore Perry

Mercer

70.94%

Forbes Road

Fulton

65.60%

Iroquois

Erie

63.70%

Central Cambria

Cambria

60.61%

 

Largest Fund Balances

District

County

$

Pittsburgh

Allegheny

 $   198,989,522

Lower Merion

Montgomery

 $      55,974,232

Altoona Area

Blair

 $      53,772,084

East Stroudsburg Area

Monroe

 $      47,573,171

Pocono Mountain

Monroe

 $      45,944,586

Neshaminy

Bucks

 $      41,351,622

Abington

Montgomery

 $      39,627,474

Reading

Berks

 $      36,985,138

Allentown City

Lehigh

 $      36,444,773

North Penn

Montgomery 

 $      36,343,484

 
 

posted by JAMES PAUL | 04:30 PM | Comments



Taxes Threaten Chris's Livelihood

July 27

Chris Hughes has owned Fat Cat Vapor Shop for almost three years. The shop—tucked away in a small Lycoming County borough—specializes in electronic cigarettes (e-cigs), which many people seek as a healthier alternative to traditional smoking. Chris understood the needs of people looking ...