Averaged across the general student population, there was no statistically significant correlation between a school’s spending levels and its students’ academic performance in 27 of the 28 academic indicators used in the model. In the only category that did show a statistically significant correlation — seventh-grade math — the impact of spending more was very small. The model shows that a school would need to spend 10 percent more to improve its average seventh-grade math scale score by just .0574 points.
The table below lists the findings by each academic indicator. The figures represent the increase in a scale score or graduation rate that could be expected with a 10 percent increase in per-pupil spending. As is customary when reporting these types of results, an asterisk next to a figure indicates that the finding is statistically significant, meaning there is better than a 90 percent chance that the finding is different from zero. On the other hand, a number with no asterisk means that the finding is not statistically robust (not different from zero). This was the case for 27 of the 28 academic indicators.
Graphic 2: Increase per 10 Percent Per-Pupil Spending Increase, 2007-2013
Academic Indicator |
Increase Per 10% Spending Increase |
3rd Grade Math |
0.1297 |
4th Grade Math |
0.0505 |
5th Grade Math |
0.2514 |
6th Grade Math |
-0.0714 |
7th Grade Math |
0.0574* |
8th Grade Math |
0.0243 |
3rd Grade Reading |
0.0894 |
4th Grade Reading |
0.0035 |
5th Grade Reading |
0.1419 |
6th Grade Reading |
0.0514 |
7th Grade Reading |
0.0386 |
8th Grade Reading |
-0.0249 |
5th Grade Science |
0.2013 |
8th Grade Science |
-0.0143 |
ACT Composite |
0.0003 |
ACT English |
0.0009 |
ACT Math |
0.0008 |
ACT Reading |
-0.0049 |
ACT Science |
0.0031 |
ACT Writing |
0.0064 |
MME Math |
0.0460 |
MME Reading |
-0.0535 |
MME Science |
0.0304 |
MME Social Studies |
0.0559 |
MME Writing |
0.0259 |
Four-year Graduation Rate |
0.0580 |
Five-year Graduation Rate |
0.0042 |
Six-year Graduation Rate |
0.0494 |