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State Education Spending: Current Pressures and Future Trends

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Publication Date: January 2008

Publisher(s): Tax Policy Center

Author(s): Sheila Murray; Kim Rueben; Carol Rosenberg

Special Collection: John D. and Catherine T. MacArthur Foundation

Topic: Education (Education financing, facilities, and equipment)

Keywords: School Finance; Government and Philanthropy; State and Local Issues; Public education

Type: Paper

Abstract:

Education expenditures are one of the largest spending areas for state and local governments, and per?pupil expenditures have been growing over time. We examine trends in state aid for education and overall education spending and decompose the existing drivers behind growing state costs. We then explore how predicted future demographic trends will affect education spending levels, as the percent of the population that is of school age falls. We conclude that there will continue to be a large state role in education funding, but demographic changes may lead to reduced political support for schools in the future.