District Effects on Student Absenteeism: Implications for School Funding Based on Average Daily Attendance

• In Event: Issues in PK–16 Education Funding

Abstract

An often-overlooked feature of state school finance systems is how states determine total student enrollment for funding purposes. Funding based on attendance, rather than initial total enrollment, incentivizes school districts to reduce absenteeism. This study is the first to examine variation in the impact of school districts on student attendance. We find that districts in Texas serving greater proportions of disadvantaged students have lower attendance rates. Use of Average Daily Attendance therefore reduces funding for high-need districts. We also find little variation in district effects on student attendance, after controlling for student background characteristics. These findings suggest that holding districts accountable for student attendance through school finance formulae may not be an effective mechanism for increasing student attendance.

Authors

• David S. Knight, University of Texas at El Paso

• Mark W. Olofson, University of Texas at El Paso