POLICY HIGHLIGHTER

Volume 14, Number 18
August 5, 2004

State’s per-pupil education spending is up
Contrary to claims, per-pupil spending outpaces inflation

No matter how you slice the pie chart, education spending in Washington is up. This runs contrary to claims made by sponsors of Initiative 884 (the billion-dollar education tax increase) that per-pupil spending has fallen behind inflation. In fact, per-pupil spending has increased at nearly double the rate of inflation since 1994.

In real dollars, per-pupil spending from the state’s general fund increased by 30.4% between 1994 and 2003, from $5,701.63 to $7,436.15. Adjusted for inflation, this is a 12.7% spending increase.

Click image to enlarge chart.

A more accurate look at per-pupil education spending includes all sources of school funding, not just the general fund. Factoring in local property tax levies, federal grants, capital (construction) funds, transportation funds, and other public school expenditures, the state’s per-pupil spending has increased by 34.8% since 1994, from $7,000.99 to $9,438.14 in 2003. This is an inflation-adjusted increase of 16.5%.

Click image to enlarge chart.

In calculating a lower per-pupil spending rate based on inflation, the League of Education Voters (sponsor of I-884) uses the Consumer Price Index (CPI), which is limited to the high-cost Seattle/Tacoma/Bremerton area. State budget writers base their calculations on a more standard inflation measure called the Implicit Price Deflator (IPD), which is also used by the U.S. Department of Commerce and the Bureau of Economic Analysis.

According to the state’s Office of Financial Management: “The IPD is used for determining inflation for state budgeting purposes because it is considered more representative of the general mix of goods and services purchased by the state than other indicators available. The other primary inflation index, the Consumer Price Index (CPI), may not adequately allow for the effects of technology and quality changes.”

While the state’s education spending is hitting record highs, school performance and student achievement are down. The problem must be addressed, but simply pouring more dollars into our public schools will not help.

State Education Spending, 1994 – 2003

Source: Office of Superintendent of Public Instruction

Prepared by: Hans Zeiger and Marsha Richards | 360-956-3482

Evergreen Freedom Foundation P.O. Box 552, Olympia, WA 98507 Phone: (360) 956-3482, Fax: (360) 352-1874 Email: effwa@effwa.org