Research
Research Consensus
Research shows that investing in school buildings, facilities, and equipment—capital investments—improves student achievement, especially if it targets basic infrastructure and high-needs school districts.
Policy Notes
- About three fourths of facilities funding for schools comes from local funds, disadvantaging lower-wealth communities that have more difficulty raising taxes.
- Many states offer matching grants for local bonds. While these make it possible for some districts to finance larger projects, they tend to be more beneficial for higher-wealth districts that have the means to approve new taxes. Some states take special measures for low-income districts, which makes it easier for lower-wealth districts to access funding.
- Twenty-four states that offer a credit enhancement program to help school districts issue bonds. This allows low-income and low-wealth districts to qualify for a higher credit rating, increasing the amount of funding they can borrow at no cost to the state. For more information about these programs, see this summary of the effects of state credit enhancement programs.
- Eleven states require supermajority votes to pass school district bonds for facilities construction and repair. Lowering vote thresholds for these measures would make it easier for districts in these states to access resources.
Capital Improvements Increased Test Scores and Property Values
Main takeaway
Biasi, B., Lafortune, J., & Schönholzer, D. (2024). What Works and For Whom?: Effectiveness of Efficiency of School Capital Investments Across the U.S. National Bureau of Economic Research.
Facilities Repairs Increase Attendance, Achievement, and Local Tax Base
Main takeaway
Biasi, B., Lafortune, J., & Schönholzer, D. (2024). What Works and For Whom?: Effectiveness of Efficiency of School Capital Investments Across the U.S. National Bureau of Economic Research.
Upgraded School Buildings Decreased Absenteeism and Adult Crime Rates
Main takeaway
Biasi, B., Lafortune, J., & Schönholzer, D. (2024). What Works and For Whom?: Effectiveness of Efficiency of School Capital Investments Across the U.S. National Bureau of Economic Research.
Learn more with audio snippets
Explore the effects of school facilities funding—from new school construction in LA Unified to national investments—and how these changes impact students and districts.
Explore the differences between funding for school operations and school facilities, how this structure often disadvantages low-income students, and ways the court system can support more equitable funding policies.
Learn what happens after a school bond is approved, how credit ratings shape borrowing costs, and why some states require supermajority votes—and the challenges that creates for districts.
