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Variations in Resource Allocation Between Rural and Nonrural Public School Districts in Minnesota

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Abstract

This study examines differences in spending between rural and nonrural districts in Minnesota and explores factors that may contribute to the variation in district expenditures. Cost factors examined include four regional characteristics (enrollment, population density, labor costs, and geographic remoteness) and three indicators of the levels of student need (the percentage of students eligible for free or reduced-price lunch, the percentage of special education students, and the percentage of English language learners. Findings from descriptive analysis suggest that nominal per-pupil expenditures varied across geographic locales in Minnesota. However, additional regressions analysis suggests that these differences are largely accounted for by the cost factors explored in this study.

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