Federal, state, and local revenues all increased from 1989–90 to 2004–05, though at different rates.

From 1989–90 to 2004–05, total elementary and secondary public school revenues increased 55 percent in constant dollars. During this period, the total amount from each revenue source (federal, state, and local) increased, though not at the same rate (see table 34-1). Federal and state revenues increased at a faster rate than all local revenues (both property tax revenue and other local revenue). Federal revenue increased 134 percent, compared with an increase of 54 percent for state revenue and 45 percent for local revenue. The total amount of revenue from each revenue source increased in each region as well.

The percentage of total revenue for public elementary and secondary education from local sources declined, from 47 percent in 1989–90 to 44 percent in 2004–05, while the percentage of total revenue flowing to public schools from federal sources increased from 6 percent in 1989–90 to 9 percent in 2004–05 (see table 34-2). The percentage from state sources was the same in 1989–90 as in 2004–05 (47 percent).

In each region, as in the nation, state and local sources were the two largest sources of revenue in 2004–05. There were, however, differences in the percentages contributed by these two revenue sources in the four regions. In the Northeast, a majority of all revenue was from local sources (52 percent) in 2004–05. Another 42 percent was from state sources. In the Midwest, about the same percentage of revenue was from local sources (45 percent) as from state sources (46 percent) in 2004–05. In the South, as in the Midwest, about the same percentage of revenue came from state sources (44 percent) and local sources (45 percent) in 2004–05. In the West, a majority of revenue was from state sources (56 percent) in 2004–05, with 33 percent from local sources.

The percentage of revenue from federal sources increased in each region from 1989–90 to 2004–05. In 2004–05, the percentage of revenue from federal sources ranged from about 7 percent in the Northeast and 8 percent in the Midwest to 11 percent in the South and West.