Rural Schools, Budget Priorities, and the Great Recession

• In Event: Intersections of Rural Economics, Health, and Education

Abstract

This paper explores how rural schools reacted to the economic shock of the Great Recession across Texas. Using data covering every school’s expenditures from 2008-2012, we examine how the hardest-hit rural schools reacted and reprioritized categorical spending, choosing to invest in horizontal or vertical equity models given present disadvantages in economies of scale. Preliminary results show that certain spending categories were highly volatile, that low-performing rural schools pursued horizontal equity models, and that reapportioned budgets under economic shocks were not driven by the student factors. These results have considerable policy and practice implications for rural school leadership and stakeholders, specifically in regard to who the budget prioritizes when times are lean.

Authors

• Andrew Pendola, Auburn University

• Jeremy Anderson, The Pennsylvania State University