In the United States, the Constitution deems that funding for public schools, including primary and elementary schools, is primarily the responsibility of the states. Individual state constitutions must make provisions for public schools that provide effective programs for students under the age of eighteen. Of course, the quality of the education often depends on the funding allocated to this cause. Finance systems vary a great deal from state-to-state. Most have evolved over the years according to changes in political climate. In addition, funding is also provided by federal and municipal governments. Figures from the fiscal year in 2011 indicate that the state and municipal governments account for 88% of school funding, while the federal government contributes the remaining 12% of financial aid. In 2011, America spent $550 billion on primary, elementary, and secondary education including funding from all levels of government.
According to the United States Department of Education, the operational cost of education per student is $10,658 USD per year. With that said, per pupil costs may vary extensively both according to the student’s individual needs and the district. Individual schools are faced with the choice of how to allocate funds in order to meet the needs of students and be fair to taxpayers. Once a stable and sufficient source of funding is established, a single school’s financial plan must meet a number of goals, some of which are in conflict with each other.
Funding for public primary and elementary schools comes from a number of sources. Although figures differ significantly between states and municipalities, on average, funding from the local municipality comes from citizen property taxes. Local property taxes are in many states the number one source of funding for schools. Another major source of funding comes from income and sales taxes at the state level. State-sponsored lotteries may also use revenue to fund schools; however, lotteries are a far less stable source of income. Aside from the contribution from the federal government, the remainder of funding may come from other sources, which may include fees, education foundations, partnerships with private businesses, advertisements, parking fees, clubs, and interest on investments, among other sources. However, the percentage contributed by these sources is usually quite small in comparison to government contributions.
When funding varies greatly from place to place, it creates differences in academic opportunity for students. For instance, at the state level, in the 2009 fiscal year, New Jersey spent $17,379 USD per student, while Utah only spent $6,452 USD per student. Adjusting for regional differences in cost does not change the fact that this discrepancy ultimately affects student outcomes. Disparities may also be present within a state. For instance, in Illinois, one district spent $21,465 USD per student in the 2009 fiscal year, while another district spent only $7,259 USD. When states rely on municipal property taxes to fund schools, students in more well-off districts have a greater resource pool than students from lower-income districts. Finally, disparities may also occur within districts, with certain schools receiving more funding than others as a result of having teachers with more experience or students with diverse needs.