more money more learning

Does money matter for schools? Why one researcher says the question is ‘essentially settled’

PHOTO: AAron Ontiveroz/The Denver Post
Educators wearing red and holding signs rally for more education funding at the Colorado Capitol on April 26, 2018.

“Throwing money at the problem” has long gotten a bad rap in education.

“The notion that spending more money is going to bring about different results is ill-placed and ill-advised,” U.S. Secretary of Education Betsy DeVos said last year.

But a string of recent studies have undermined that perspective. Now, a new review of research drives another nail into the argument’s coffin.

The review looks closely at 13 studies focused on schools nationwide or in multiple states. Twelve found that spending more money meant statistically significant benefits for students, including rising test scores and high school graduation rates.

“By and large, the question of whether money matters is essentially settled,” Northwestern economist Kirabo Jackson concludes. “Researchers should now focus on understanding what kinds of spending increases matter the most.”

In the paper, which was released Monday through the National Bureau of Economic Research and has not been peer-reviewed, Jackson looks at attempts to pin down the effects of school spending. This is critical, because policymakers like DeVos often focus on correlations between spending and test scores.

The results of the 13 studies are remarkably consistent, even though they span different time periods.

For instance, students saw big gains in school districts where spending jumped between 1972 and 1990, one study found. A 10 percent increase in spending across a student’s 12 years in public school led students to complete an additional one-third of a year of school and boosted their adult wages by 7 percent. The gains were largest for low-income kids.

Studies of more recent changes tell a similarly encouraging story. States that increased school funding between 1990 and 2011 saw substantial gains on federal exams soon after, another analysis found.

A separate paper found that 12 percent increases in school spending boosted graduation rates by several percentage points

And another study found that cutting funding in the wake of the Great Recession hurt student test scores and graduation rates.

Jackson identifies just one national paper without clear positive effects.

“Money used wisely clearly matters,” said Lori Taylor, a Texas A&M school finance researcher  who praised Jackson’s study. “One of the takeaways from this newer literature might be that schools are more wise than we thought.”

Studies looking at single states have also found largely encouraging results. One recent study in New York took advantage of a quirk in the state’s funding formula that allowed certain districts with falling enrollment to get extra funding. Those extra dollars led to higher scores on state exams, it found.

Another New York study found that a 2 to 3 percent increase in funding led to a 0.5 to 0.8 percentage point decline in the high school dropout rate.

Head over to Ohio, and the results look similar: passing a funding ballot measure caused a boost in test scores. Three separate papers in Michigan, as well as a study in Massachusetts, found positive results, too. And Jackson’s overview may actually understate the evidence, as it does not include recent research in California and Texas, which also found gains from additional funding.

The only state study that showed unrestricted funding increases did not result in any improvements was a 2003 paper looking at Kentucky.

The pattern is consistent with other recent research overviews, but it’s a sharp departure from an older one by Eric Hanushek, a Stanford economist who has frequently testified on behalf of states defending against lawsuits aimed at increasing school funding. His 1997 review looked at studies conducted before 1995, and found that only 27 percent of the results showed statistically significant gains from additional school spending.

Jackson argues that Hanushek’s review — which was vigorously challenged even at the time — is dated and relies on studies with crude methodologies.

Hanushek concedes that, but says his view on the matter is largely unchanged. The gains shown in the studies in Jackson’s paper differ in size, he said. And he noted a similar correlation to ones that DeVos cites: as spending has increased over the past several decades, scores on 12th grade federal tests have remained largely stagnant.

“The variation in the results that you get indicate quite clearly if I want to fix [a school district] and I just drop money on them, they may or may not get better,” Hanushek said. “It’s how the money is spent more than how much.”

Still, even Hanushek acknowledges there is a case for spending more money in schools.

“I think we’re underinvesting in education in the U.S. and I think it’s pretty serious,” he said. “But I don’t want to just do what we’ve done in the past and hope for something different.”

Jackson’s results are a bit murkier when examining state spending that is earmarked for specific uses. School construction spending, for example, led to gains in some cases but no clear effects in others. A trio of New York City studies found that federal Title I funds targeted at disadvantaged students did not have clear positive effects.

Jackson’s paper also does not review research on spending increases to pay for smaller class sizes, teacher salary increases, tutoring programs, or school turnaround efforts. A number of turnaround initiatives with big price tags have yielded disappointing results.

On balance, Taylor of Texas A&M says that the research points in a clear direction — though it still may not persuade skeptics.

“There were some circles that never bought the premise that money doesn’t matter,” she said. “There are other circles that will never accept the premise that money does matter.”

To Do

Tennessee’s new ed chief says troubleshooting testing is first priority

PHOTO: (Caiaimage/Robert Daly)

Penny Schwinn knows that ensuring a smooth testing experience for Tennessee students this spring will be her first order of business as the state’s new education chief.

Even before Gov.-elect Bill Lee announced her hiring on Thursday, she was poring over a recent report by the state’s chief investigator about what went wrong with TNReady testing last spring and figuring out her strategy for a different outcome.

“My first days will be spent talking with educators and superintendents in the field to really understand the scenario here in Tennessee,” said Schwinn, who’s been chief deputy commissioner of academics in Texas since 2016.

“I’ll approach this problem with a healthy mixture of listening and learning,” she added.

Schwinn’s experience with state assessment programs in Texas and in Delaware — where she was assistant secretary of education — is one of the strengths cited by Lee in selecting her for one of his most critical cabinet posts.

The Republican governor-elect has said that getting TNReady right is a must after three straight years of missteps in administration and scoring in Tennessee’s transition to online testing. Last year, technical disruptions interrupted so many testing days that state lawmakers passed emergency legislation ordering that poor scores couldn’t be used to penalize students, teachers, schools, or districts.

Schwinn, 36, recalls dealing with testing headaches during her first days on the job in Texas.

“We had testing disruptions. We had test booklets mailed to the wrong schools. We had answer documents in testing booklets. We had online administration failures,” she told Chalkbeat. “From that, we brought together teachers, superintendents, and experts to figure out solutions, and we had a near-perfect administration of our assessment the next year.”

What she learned in the process: the importance of tight vendor management, including setting clear expectations of what’s expected.

She plans to use the same approach in Tennessee, working closely with people in her new department and Questar Assessment, the state’s current vendor.

“Our job is to think about how to get online testing as close to perfect as possible for our students and educators, and that is going to be a major focus,” she said.

The test itself has gotten good reviews in Tennessee; it’s the online miscues that have many teachers and parents questioning the switch from paper-and-pencil exams. Schwinn sees no choice but to forge ahead online and is quick to list the benefits.

“If you think about how children learn and access information today, many are getting that information from hand-held devices and computers,” she said, “so reflecting that natural experience in our classrooms is incredibly important.”

Schwinn said computerized testing also holds promise for accommodating students with disabilities and provides for a more engaging experience for all students.

“When you look at the multiple-choice tests that we took in school and compare that to an online platform where students can watch videos, perform science experiments, do drag-and-drop and other features, students are just more engaged in the content,” she said.

“It’s a more authentic experience,” she added, “and therefore a better measure of learning.”

Schwinn plans to examine Tennessee’s overall state testing program to look for ways to reduce the number of minutes dedicated to assessment and also to elevate transparency.

She also will oversee the transition when one or more companies take over the state’s testing program beginning next school year. Former Commissioner Candice McQueen ordered a new request for proposals from vendors to provide paper testing for younger students and online testing for older ones. State officials have said they hope to award the contract by spring.

In Texas, a 2018 state audit criticized Schwinn’s handling of two major education contracts, including a no-bid special education contract that lost the state more than $2 million.

In Tennessee, an evaluation committee that includes programmatic, assessment, and technology experts will help to decide the new testing contract, and state lawmakers on the legislature’s Government Operations Committee plan to provide another layer of oversight.

Spring testing in Tennessee is scheduled to begin on April 15. You can learn more about TNReady on the state education department’s website.

Editor’s note: This story has been updated with new information about problems with the handling of two education contracts in Texas. 

Class of 2018

Some Colorado schools see big gains in grad rates. Find yours in our searchable database.

PHOTO: Courtesy of Aurora Public Schools
Aurora West College Preparatory Academy graduates of 2018. The school had a 100 percent graduation rate.

Two metro-area school districts, Westminster and Aurora, recently in the state’s crosshairs for their low-performance, posted significant increases in their graduation rates, according to 2018 numbers released Wednesday.

Westminster, a district that got off the state’s watchlist just last year, had 67.9 percent of its students graduate on time, within four years of starting high school. That was a jump of 10 percentage points from its 57.8 percent graduation rate in 2017.

District officials credit their unique model of competency-based education, which does away with grade levels and requires students prove they mastered content before moving up a level. In previous years, district officials pointed to rising graduation rates that Colorado also tracks for students who take five, six or seven years, but officials say it was bound to impact their 4-year rates as well.

“We saw an upward tick across the board this past year,” said Westminster Superintendent Pam Swanson, referring to state test results and other data also showing achievement increasing. “I think this is one more indicator.”

Swanson said the high school has also focused recently on increasing attendance, now at almost 90 percent, and increasing students’ responsibility for their own learning.

(Sam Park | Chalkbeat)

In Aurora schools, 76.5 percent of students graduated on time in 2018 — a jump of almost 9 percentage points from the 67.6 percent rate of the class of 2017.

“We’re excited these rates demonstrate momentum in our work,” Aurora Superintendent Rico Munn said.

He attributed the increased graduation rates to “better practice, better pedagogy, and better policy.”

One policy that made a difference for the district is a change in law that now allows districts to count students as graduates the year they complete their high school requirements, even if they are enrolled in one of Colorado’s programs to take college courses while doing a fifth year of high school.

According to a state report two years ago, Aurora had 65 students enrolled in this specific concurrent enrollment program who previously wouldn’t have been counted in four-year graduation rates. Only the Denver district has a larger number of such students. Aurora officials said 147 students are enrolled this year in the program.

Those students are successful, Munn said, and shouldn’t be counted against the district’s on-time graduation rates.

Aurora’s previously rising graduation rates helped it dodge corrective state action. But its improvement this year included a first: One high school, Aurora West College Preparatory Academy, had 100 percent of its seniors graduate in 2018.

The school enrolls students in grades six through 12 in northwest Aurora, the most diverse part of the district. Of the more than 1,000 students, 89 percent qualify for subsidized lunch, a measure of poverty.

“This incredible accomplishment demonstrates the strong student-focused culture we have created at Aurora West,” said Principal Taya Tselolikhina in a written statement. “When you establish high expectations and follow up with high levels of support, every student is able to shape a successful future.”

Statewide, the four-year graduation rate once again inched higher, and gaps between the graduation rate of white students and students of color again decreased. But this time, the gaps narrowed even as all student groups increased their graduation rates.

(Sam Park | Chalkbeat)

The rising trend wasn’t universal. In some metro area school districts, graduation rates fell in 2018. That includes Adams 14, the district that is now facing outside management after years of low performance.

The tiny school district of Sheridan, just southwest of Denver, saw a significant drop in graduation rates. In 2018, 64.7 percent of students graduated within four years, down from 72.7 percent of the class of 2017.

Look up four-year graduation rates for your individual school or district in our databases below.

Districts here: