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School Spending Priorities: New Experimental Evidence from an Interactive Budget Survey with School District Leaders

Tue, August 12, 8:00 to 9:30am, East Tower, Hyatt Regency Chicago, Floor: Concourse Level/Bronze, Michigan 1B

Abstract

Targeted school spending is a potentially valuable policy lever to improve student outcomes and address educational inequalities. Recent research indicates that the benefits of additional funding may vary, depending on how districts choose to allocate resources. However, little is known about local education leaders' spending preferences or how these vary across district contexts. This study addresses these gaps using a novel interactive school district budget simulation to analyze how district leaders would allocate a large, permanent funding increase to a hypothetical district. Respondents allocate a 20% or 50% funding increase across categories such as instruction, support staff, capital expenses, and new programs. They also estimate the expected benefits of their allocations. The survey is fielded with superintendents in 14 states. Initial findings suggest strong preferences for early childhood education and instructional spending, particularly when respondents are instructed to prioritize spending that may impact student achievement. Districts with higher achievement and lower poverty rates allocate more to pre-K and academic enrichment programs. District leaders expect the greatest benefits to accrue to low-income students, with more limited anticipated impacts on racial achievement gaps. Our results provide critical insights into local spending decisions and their implications for education policy and equity.

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