Public schools in the United States of America provide basic education from kindergarten until the twelfth grade. This is provided free of charge for the students and parents, but is paid for by taxes on property owners as well as general taxes collected by the federal government. This education is mandated by the states. With the completion of this basic schooling, one obtains a high school diploma as certification of basic skills for employers.
The largest source of funding for elementary and secondary education comes from state government aid, followed by local contributions (primarily property taxes). The public education system provides the classes needed to obtain a General Education Development (GED) and obtain a job or pursue higher education. The education system can deem higher level courses unnecessary, therefore omitting these courses from public school curriculum. Though earning a diploma, students' education can be limiting, and most of the disadvantaged population includes those in a lower income city or neighborhood. Racial and ethnic minorities primarily comprise this population. As Kozol talks about in his book, Racial Inequality, school infrastructure and the surrounding neighborhoods play a big factor in funding allocation. Frequently, students drop out due to lack of support from parents or school faculty.
According to a review of the economics literature by Kirabo Jackson, there is strong evidence of "a causal relationship between increased school spending and student outcomes. All but one of the several multi-state studies find a strong link between spending and outcomes – indicating that money matters on average... the robustness of the patterns across a variety of settings is compelling evidence of a real positive causal relationship between increased school spending and student outcomes on average."
The National Center for Education Statistics reports that approximately 80% of school funding in years 2000-01, 2010–11, 2016-17 was dedicated to salaries and employee benefits. Salaries decreased by 7% and benefits spending Increased by 6% from 2000-01 to 2016-17.
Current expenditures per pupil enrolled in the fall in public elementary and secondary schools were 20 percent higher in 2016–17 than in 2000–01 ($12,794 vs. $10,675, both in constant 2018–19 dollars). Current expenditures per pupil increased from $10,675 in 2000–01 to $12,435 in 2008–09, decreased between 2008–09 and 2012–13 to $11,791, and then increased to $12,794 in 2016–17.
Capital outlay expenditures per pupil in 2016–17 ($1,266) were 10 percent lower than in 2000–01 ($1,412). Interest payments on public elementary and secondary school debt per pupil were 22 percent higher in 2016–17 than in 2000–01. During this period, interest payments per pupil increased from $312 in 2000–01 to $415 in 2010–11, before declining to $379 in 2016–17 (all in constant 2018–19 dollars).
State and local role in education funding
According to the US Department of Education, the Federal Government contributes about 8% to funding US public schools. To fund the remaining balance per student in the public education System, state and local governments are mandated to allocate money towards education. The state allocates a percentage of its revenue, from sales and income tax, to use towards education. The funds that are set aside for education are determined by the State constitutions, Propositions, and the incoming Government officials. According to the National Conference of State Legislatures, States provide structure, equality, fiscal accountability, stability and support to the public education systems per state. Each state varies the level of support that the schools receive with the implementation of legislation.
The Local government allocates education funding from the revenue generated by property tax and other fundraising efforts. Local officials have the ability to influence the rate of change of property taxes that are used to fund local expenditures, including education.