The Importance of K12 Foundations in School Finance
K12 public schools are always low on funds. Parents supply markers, tissues, and help their kids sell wrapping paper. Some teachers and students spend the day in rough conditions—mold in the walls, wasps in the ceiling, and funky smells. (1)
Teachers often get the brunt of it, as they spend their own money for supplies (hundreds or thousands) or write grants for special projects or even in-classroom books.
K12 school funding comes from various sources including the federal government, state, residential taxes, and private sources. On average, 8% of revenues are federal, 47% from the state, and 45% locally-sourced. (2)
And it’s still not enough. That’s why education foundations play an important role in fundraising and advocating for schools.
Federal Funding
Federal funds are about 8% of public school budgets, according to the U.S. Dept of Education. Federal funding covers things like Title 1: support for the economically disadvantaged and Head Start: support for early education. The states receive the funding and distribute it to school districts.
School District Per Pupil Funding
Put simply, public schools receive funding from the state and residential taxes to receive funding per pupil funding. Using Colorado as an example, the equation looks like this:
To see if broken down further, please see School Finance in Colorado.
Big Discrepancies
In fiscal year 2017, the average per pupil spending by state was $12,201. New York has the highest expenditure of $23,091. As this map shows, states like Utah spend less than $9,000 per pupil. This map shows the 2016 expenditures by state:
Revenues and Expenditures for Public Elementary and Secondary Education: School Year 2015–16 (Fiscal Year 2016) First Look DECEMBER 2018 Stephen Q. Cornman National Center for Education Statistics Lei Zhou Activate Research, Inc. Malia R. Howell Jumaane Young U.S. Census Bureau
Even within states, the discrepancies are huge. Citing Colorado again, which was ranked 39th nationally in fiscal-year 2016, has an average of $9,575 spending per-pupil in public elementary and high schools. Within districts the range was from $7,983 to $18,807. (3)
Where Per Pupil Funding Goes
School budgets are fairly complicated. As a parent I wonder why we can’t afford more science materials, while others wonder why we cut music or art. Some are quick to blame bloated administrations (for example, Betsy DeVos, current US Secretary of Education), but only 7.4% of operating costs go to administration. About 60% goes to “instruction” which is mostly salaries and benefits. (4)
So it must be the teachers making all that money! Not a chance. The national average starting teacher salary is $38,617. The overall average teacher salary in America is $58,950. (5) Yes, they get the summers off, but remember that part about having to dole out their own money for supplies. Many have second jobs.
Most of the remainder of the budget, 35%, goes to support services, like social work, counseling, curriculum development and training, transportation, and building maintenance.
The point is, there’s not much left for laptops, textbooks, or even ceiling repair.
Voters help with Bonds and Mill Levy Overrides
Voters have a role in funding. Mill levy overrides are property tax increases that schools can use for expenses like teacher salaries or new programs. Bonds also result in increased property taxes, but they are used to pay debt for construction projects. In Colorado’s 2018 election, there were 21 mill levy overrides and 19 bond requests up for vote. Not all of them passed. (6)
Why Education Foundations are So Important
After all that, there’s still a need for more computers, science materials, or even another teacher for that huge 3rd grade class. That’s where education foundations can provide a much-needed source of funding. They also help advocate for schools and bring community members in as partners to support schools and promote innovative programs.
“School foundations…used to raise money for extras…but these days private donations to schools have grown dramatically and are being used to prevent teacher layoffs, keep libraries open, and save music and foreign-language classes.”
- HuffPost.com (7)
Foundations play a large role in advocating for schools and finding important supporters, too. "Foundations bring in a whole different set of patrons with whom we get to work," says Marsha Chappelow, assistant superintendent of communication services for the Blue Valley School District in Overland Park, Kan. "You are educating patrons as well as fundraising from them." (8)
So the next time you see a donation plea from your local education foundation, know that a large or even small donation will play an important part in funding public school education.
Notes:
1. Sedgwick, Josephine. April 16, 2018. 25-Year-Old Textbooks and Holes in the Ceiling: Inside America’s Public Schools. New York Times online.
2. McFarland, J., Hussar, B., Wang, X., Zhang, J., Wang, K., Rathbun, A., … Bullock Mann, F. (2018). The condition of education 2018. National Center for Education Statistics. Retrieved from https://nces.ed.gov/pubsearch/pubsinfo.asp?pubid=2018144
3. Harden, Mark. May 21, 2018. How does Colorado rank on per-student school spending? ColoradoPolitics.com
4. Barnum, Matt. Sept 19, 2019. Betsy DeVos says schools are strapped for cash because of well-paid bureaucrats. Here’s why that’s misleading. Chalkbeat.org
5. Niche.com, Teacher Salaries in America. Citing references from NEA 2016-2017 Average Starting Salaries by State NCES Estimated average salary of teachers in public elementary and secondary schools, by state, 2016-2017
6. Meltzer, Asmar &Schimke. November 7, 2018. Wins, losses, and split decisions: Here’s how Colorado school district tax measures fared. Chalkbeat.org.
7. Yang Su, Eleanor. Jan 19, 2012. Public School, Private Donations: The Money Debate. Huffpost.com.
