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Education Finance

At CRPE, our previous finance research centered on how funding systems could support the growth of charter schools and portfolio-style governance, with a strong emphasis on equity, transparency, and flexibility in resource allocation. We examined how traditional formulas often disadvantaged schools of choice and studied weighted or student-based funding models that might better match dollars to student needs.

Today, our focus has shifted to how education finance can help schools recover and adapt in the face of disruption. We study how pandemic-era funding was used, what lessons districts learned, and how the expiration of those funds creates new fiscal challenges. We also examine how shifting federal priorities—such as efforts to scale back or restructure education funding—affect schools’ capacity to innovate, sustain supports, and equitably serve all students. Across this evolution, our commitment remains the same: to understand how funding systems can be designed to meet student needs while enabling schools to respond to change.

  • Research Reports    

The Promise of Cafeteria-Style Benefits for Districts and Teachers

Noah Wepman, Marguerite Roza, Cristina Sepe

This brief describes how a different method of supplying benefits to employees might work for districts: cafeteria plans. While typical school district plans offer a one-size-fits-all package of benefits to employees, cafeteria plans allow employees to customize their benefits within a given cost.

  • Research Reports    

Washington State High Schools Pay Less for Math and Science Teachers than for Teachers in Other Subjects

Jim Simpkins, Marguerite Roza, Cristina Sepe

In this brief, CRPE analysts find that most of Washington’s largest districts spend less per math or science teacher than for teachers in other subjects.

  • Research Reports    

Curing Baumol’s Disease: In Search of Productivity Gains in K–12 Schooling

Paul Hill, Marguerite Roza

Improvements in productivity in other sectors may hold important lessons for understanding how the education system can become more efficient.

  • Research Reports    

The Disproportionate Impact of Seniority-Based Layoffs on Poor, Minority Students

Cristina Sepe, Marguerite Roza

Looking at the 15 largest districts in California, this analysis finds that teachers at risk of layoff are concentrated in schools with more poor and minority students, concluding that “last in, first out” policies disproportionately affect these students and their schools.

  • Research Reports    

K–12 Job Trends Amidst Stimulus Funds: Early Findings

Marguerite Roza, Chris Lozier, Cristina Sepe

This brief explores trends in K–12 education jobs—those funded through the stimulus and by other means—to answer the question of what role ARRA played in overall education employment.

  • Research Reports    

Beyond Teacher Reassignments: Better Ways Districts Can Remedy Salary Inequities Across Schools

Marguerite Roza, Sarah Yatsko

This brief demonstrates how, contrary to common worry, closing Title I’s “comparability provision” loophole would not force districts to mandatorily reassign teachers.

  • Research Reports    

Have States Disproportionately Cut Education Budgets During ARRA? Early Findings

Marguerite Roza, Susan Funk

This analysis explores how state education spending has changed or will change given the application of the State Fiscal Stabilization Fund.

  • Research Reports    

Separation of Degrees: State-By-State Analysis of Teacher Compensation for Master’s Degrees

Marguerite Roza

This analysis argues that in the current fiscal climate, districts should rethink automatically paying teachers for master’s degrees, and consider how money could instead be channeled into compensation in ways that lead to improved student performance.

  • Research Reports    

Facing huge budget gaps, are school district officials forced to lay off teachers?

It’s true that teacher salaries make up the largest slice of the district budget pie, but salary costs can be cut without layoffs. Rather than handing out pink slips, some districts have explored rolling back salaries.

An estimated 60%–80% of the more than $500 billion per year spent operating the nation’s public schools goes directly to paying and supporting school employees. Much of the money is directed to basic teacher salary costs. The problem for many locales, however, is that wages are often decided many years in advance, via collective bargaining agreements. In contrast, decisions about how to close budget gaps get made just ahead of the affected school year as revenue projections are finalized. Sometimes in closing gaps, district leaders treat salary decisions made years ago as immovable (which they are not) and focus only on furloughs and layoffs.

This Rapid Response brief demonstrates the effect on wages, layoffs, and class sizes of a range of policy options available to districts forced to cut salary expenditures.

Marguerite Roza

This analysis shows that school districts faced with large budget gaps could avoid some or all teacher layoffs by rolling back salaries.

  • Research Reports    

Ranking the States: Federal Education Stimulus Money and the Prospects for Reform

Marguerite Roza

This brief presents rank order projections of changes in state K-12 education spending amidst state revenue gaps and the addition of ARRA funds.

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