… Adjusting for inflation and growth in student enrollment, spending fell every year from 2010 to 2012, even as costs for health care, pension plans and special education programs continued to rise faster than inflation.1 Urban districts have been particularly hard-hit by the cuts in federal education spending: Nearly 90 percent of big-city school districts spent less per student in 2012 than when the recession ended in 2009.
The recent cuts represent a sharp reversal after decades of rising U.S. education spending. In 1950, American school districts spent, on average, roughly $1,800 per student. Spending has risen nearly every year since then; by 2006-07, the last full school year before the recession, per-student spending was nearly $11,000. (Both figures have been adjusted for inflation.) The long increase reflected a range of factors, among them higher teacher salaries, broader curricular and extracurricular offerings, and, especially in recent years, increased spending on students with disabilities. Another major factor: smaller class sizes. In the 1950s, there were roughly 25 students for every teacher; by 2007, the ratio had fallen to 15.5-to-one.
The latest numbers show that the average student-teacher ratio in public schools is 16-to-one.
Sources of public education funding — State: 45% Local: 45% Federal: 10%
More details about trends in public school spending can be found in Public Education Finances: 2012, published earlier this year by the U.S. Census Bureau.