Current expenditures per student in 2004–05 were highest in high-poverty school districts and next highest in low-poverty school districts

Current expenditures per student in public elementary and secondary schools vary by the level of poverty in a district. For example, in 2004–05, current expenditures per student, which include instructional, administrative, and operation and maintenance expenditures, were highest in high-poverty districts ($9,892), next highest in low-poverty districts ($9,263), and lowest in middle-poverty districts ($8,536) (see table 37-1). Districts were ranked by the percentage of school-age children (5- to 17-year-olds) in poverty and then divided into five groups with approximately equal public school enrollments. The low-poverty district category consists of those districts with the lowest percentages of school-age children in poverty. Conversely, the high-poverty district category consists of those with the highest percentages of school-age children in poverty. All expenditures in this indicator have been adjusted to account for inflation and geographic cost of living differences.¹

Between 1997–98 and 2004–05, current expenditures per student increased by 20 percent in constant dollars, from $7,602 to $9,094. Current expenditures per student increased the most for the high-poverty districts (26 percent), and the least for the middle-poverty districts (16 percent). Expenditures in the other three categories increased between 18 and 20 percent.

In 2004–05, current expenditures per pupil also differed by the type of community in which the school district was located. When adjusted for geographic cost differences, current expenditures per student were highest in districts located in towns ($9,430) and rural areas ($9,426) and lowest in the suburbs ($8,862) (see table 37-2). In every district poverty category, rural areas had either the highest or second highest current expenditures per pupil.

There were differences in the types of communities in which low- and high-poverty school districts were located. For example, among students in low-poverty districts, 69 percent were enrolled in the suburbs, while 10 percent were enrolled in cities (see table 37-3). In contrast, 69 percent of the students in high-poverty districts were enrolled in cities, while the suburbs enrolled 7 percent.

¹ The NCES Comparable Wage Index (CWI) was used to adjust for geographic cost differences. As the CWI measures geographic differences in wages, it is more appropriate to use the CWI for expenditure categories with larger percentages of salaries, such as current expenditures and instruction expenditures, than for other expenditures with smaller percentages of salaries such as total expenditures. All expenditures in this indicator are in constant 2006–07 dollars. The Consumer Price Index (CPI) was used to adjust expenditures into constant dollars. See supplemental note 11 for information on the CWI, the CPI, and classifications of expenditures. (back to text)