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National Education Month is not only a great time to honor the important work of teachers and school staff but also to assess how states invest in public education. Research from the Public Policy Institute of California shows that  

In this article, explores to examine how states allocate resources to public schools and the variations in funding priorities across states. Some states are missing from this analysis due to unavailable data. 

 2022 to 2023 Funding Shifts 

Many states have been working to increase public education budgets to bolster student outcomes and close resource gaps. Nationally, that has added up to the biggest boost of educational expenditure in 20 years with the U.S. Census Bureau reporting that in 2022.  

States can decide how to allocate funds for education, which has resulted in a different landscape for public education in each state. For example, in Michigan, the 2023 with funds going toward special education, at-risk students, rural bus transportation, and free breakfast and lunch. grew by $2.3 billion from the previous year, allocating more funds directly to local school districts and including new funds to help support early childhood education. In states like and, budgets included the expansion of school choice and voucher programs.  

Many states face the struggle of keeping pace with inflation—one example is Wisconsin, where opponents of the education budget argue that despite a, the high rate of inflation all but nullifies it. Another is Colorado, which bases school funding on student enrollment and inflation. Because enrollment in Colorado public schools has dropped,, leveling out any funding gains, some argue. 

How Pandemic Impacted Funding 

The COVID-19 pandemic brought substantial changes to U.S. schools, including an increase in federal funding. One part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act was the Elementary and Secondary School Emergency Relief (ESSER) program that to K-12 schools.  

 In the early days of the pandemic, money went to expanding and supporting hybrid and remote learning, including providing students with laptops and even WiFi access. In response, the EdTech market saw a, with states continuing to invest in technology. 

ESSER dollars were also spent on addressing critical needs, such as. Many schools invested the funds in teachers and staff, earmarking money for hiring and increasing teacher pay. Grappling with the student mental health crisis during the pandemic, schools used federal funds to sustain and build mental health services. For example, Florida put toward reducing the mental health professional-to-student ratio in rural school districts and expanding access to mental health services. 

Shifting Priorities Post-COVID-19 &²Ô²ú²õ±è;

The deadline for spending ESSER funds was Sept. 30, 2024; however, some states have been granted extensions that run through 2026. With this boost of federal funding phasing out, states will need to return to their pre-pandemic funding models and make hard decisions about which ESSER-funded programs and supports will continue.  

Post-pandemic, priorities have shifted with a sharper focus on academic recovery, student mental health, and teacher retention. A found that districts were planning to put the last of their ESSER funds toward addressing chronic absenteeism and offering more counseling services—Illinois planned to use its funds to boost social-emotional learning (SEL) support by creating SEL hubs throughout the state.  

With teacher shortages still plaguing most districts and teacher retention rates dropping, states have focused on shoring up their own teacher pipelines. While some states have updated their, which recruit future teachers from the ranks of support staff and aides. 

Regional Disparities in Education Spending &²Ô²ú²õ±è;

Every state has a unique process or formula for determining its education budget, and usually, funds come from federal, state, and local levels. Most states calculate funding on a per-student basis (either based on enrollment or attendance) with more weight given to certain student populations like low-income students and special education students. Other states have a resource-based model, allocating money for services and staffing, or use a guaranteed tax base model that pulls from local and state taxes.