It is commonly believed by lawmakers, educators, and commentators that the federal government only contributes about 7 percent of total spending on K-12 education. This figure is used to either criticize Washington’s insufficient support for the nation’s children and advocate for more funding, or to argue that Washington should be cautious in asserting authority over local educators due to its relatively small contribution. However, this figure is no longer entirely accurate as the federal education budget has experienced significant increases in recent years. The federal share of education spending has been fluctuating since the establishment of the federal Department of Education and the situation is more complex than it seems.
According to budget documents released by the department last week, the figure is actually approaching 8 percent and is expected to be 7.9 percent for the 2001-02 school year, up from 7.1 percent for the 2000-01 academic year. However, some political and policy officials argue that this figure, while still a small portion of overall K-12 spending, can be misleading. This is because most federal education programs are targeted towards specific populations and, as a result, federal spending in a particular school or district can range from a small percentage to nearly the entirety of their budget. For example, Santee Community School, located on an Indian reservation in Santee, Neb., relies on federal impact aid for approximately 75 percent of its budget. Impact aid is a program that reimburses districts for federal activities that can lower property-tax revenue, such as the presence of military bases.
The 7 percent figure is considered deceptive by some, as was discovered during the development of the recently passed reauthorization of the Elementary and Secondary Education Act. David Schnittger, a spokesman for Rep. John A. Boehner, the Ohio Republican who chairs the House Education and the Workforce Committee, stated that it varied based on poverty levels and the size of the district. Edward R. Kealy, the executive director of the Committee for Education Funding, a coalition of organizations that advocate for increased federal aid to education, also acknowledged the variability of federal spending and emphasized the influence of poverty and district size.
The federal budget for discretionary Education Department programs, including postsecondary education, has experienced significant growth over the past five years, with a rise of 85 percent from $26.3 billion in fiscal year 1997 to $48.9 billion in total spending for fiscal year 2002. President Bush has proposed further increasing the budget to $50.3 billion for the next year. The Department of Education projects that federal spending will account for $35 billion, or 7.9 percent, of the total $442.6 billion spent on elementary and secondary education in fiscal year 2001, which is the budget for the current academic year. State contributions make up the largest portion of overall K-12 spending, totaling $198.2 billion, or 44.8 percent. Local funding accounts for 37.9 percent, or $167.7 billion, and other sources contribute $41.7 billion, or 9.4 percent. In fiscal year 2000, the federal contribution was $30 billion, or 7.1 percent, of the total $422.7 billion in education expenditures. In fiscal year 1997, the federal share was 6.1 percent of the $351.3 billion spent. However, even with the increasing share in recent years, the proportion remains below the federal government’s contribution of 12 percent in fiscal year 1980, according to the National Center for Education Statistics.
Despite this information, there is still considerable debate regarding whether 7 percent is too much or too little of a federal contribution to education.
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