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New Report Reveals Major Funding Gaps in School Districts Educating Low-Income or Minority Students

Looking behind the averages of state per-pupil spending on education, the Education Trust found most states are under-funding school districts with high proportions of students who are low-income or minority. "The Funding Gap: Low-Income and Minority Students Receive Fewer Dollars," released in August 2002, details this national problem and finds school funding equity varies dramatically by state.

The worst offender, New York, has a yawning gap of almost $2,200 per-pupil annually, which means about $54,000 per classroom and $880,000 for a 400-pupil elementary school. Based on information from the 1999-2000 school year (the most recent available), the study found that the states shortchanging high-poverty districts most, after New York, are Pennsylvania, Illinois, Montana and Michigan. States with the largest gaps for districts with high minority enrollments, are New York, Wyoming, Nebraska, Kansas and Texas. Interestingly, the highest courts in many of these states have found for defendants in education finance litigations.

On the other hand, some states have succeeded in improving funding equity, often states where plaintiffs have prevailed in fiscal equity or adequacy suits. In New Jersey, for example, the funding gap changed from $587 per-student less for low-income students to $324 more, from 1997 to 2000. Connecticut, Kentucky, Massachusetts and Tennessee have also made significant progress.

After adopting higher academic standards and more rigorous accountability measures in recent years, most states have not yet aligned their funding systems with these mandates to provide a genuine opportunity for low-income and minority students to succeed. Similarly, the new federal No Child Left Behind legislation requires states to improve performance among all groups of students, but does not yet require equitable or adequate funding to support these goals.