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.
On Average, Across-The-Board Funding Increases Yield Modest Student Gains
Main takeaway
Broad increases in school funding are associated with small to moderate improvements in student outcomes across the general student population.
Jackson, C. K., & Mackevicius, C. L. (2024). What impacts can we expect from school spending policy? American Economic Journal: Applied Economics, 16(1): 412–446.
Increased Spending on Students in Disadvantaged Communities Leads to Higher Student Achievement
Main takeaway
Funding increases targeted toward high-poverty districts generate larger and more consistent improvements in student achievement.
Jackson, C. K., & Mackevicius, C. L. (2024). What impacts can we expect from school spending policy? American Economic Journal: Applied Economics, 16(1): 412–446.
Additional Funding Yields Higher Academic Gains for Low-Income Students Compared to Wealthier Peers
Main takeaway
The academic benefits of increased school spending are significantly larger for low-income students than for students from higher-income backgrounds.
Jackson, C. K., & Mackevicius, C. L. (2024). What impacts can we expect from school spending policy? American Economic Journal: Applied Economics, 16(1): 412–446.
