Our survey, the most up-to-date data available on state and local funding for schools, indicates that, after adjusting for inflation:
- At least 31 states provided less state funding per student in the 2014 school year (that is, the school year ending in 2014) than in the 2008 school year, before the recession took hold. In at least 15 states, the cuts exceeded 10 percent.
- In at least 18 states, local government funding per student fell over the same period. In at least 27 states, local funding rose, but those increases rarely made up for cuts in state support. Total local funding nationally ― for the states where comparable data exist ― declined between 2008 and 2014, adding to the damage from state funding cuts.
- While data on total school funding in the current school year is not yet available, at least 25 states are still providing less “general” or “formula” funding ― the primary form of state funding for schools ― per student than in 2008. In seven states, the cuts exceed 10 percent.
- Most states raised “general” funding per student slightly this year, but 12 states imposed new cuts, even as the national economy continues to improve. Some of these states, including Oklahoma, Arizona, and Wisconsin, already were among the deepest-cutting states since the recession hit.
States cut funding for K-12 education — and a range of other areas, including higher education, health care, and human services — as a result of the 2007-09 recession, which sharply reduced state revenue. Emergency fiscal aid from the federal government helped prevent even deeper cuts but ran out before the economy recovered, and states chose to address their budget shortfalls disproportionately through spending cuts rather than a more balanced mix of service cuts and revenue increases. Some states have worsened their revenue shortfalls by cutting taxes.
Restoring school funding should be an urgent priority. Steep state-level K-12 spending cuts have serious consequences.