This report examines findings from Open the Books, a government transparency organization, which reveals a concerning inverse relationship between educational spending and student outcomes. Their analysis of 12,531 public school districts challenges conventional assumptions about education funding.
Open the Books analyzed payroll data from school districts across all 50 states between 2019 and 2023, correlating these changes with student performance on the National Assessment of Educational Progress (NAEP) tests. By plotting percentage changes in state payrolls against changes in district national rankings, researchers identified a systematic pattern undermining the "more money equals better results" narrative.
The research uncovered a mild but significant negative correlation of -0.32 between payroll growth and student performance. While not suggesting causation, this finding indicates that states with increasing payrolls often experienced declining test scores.
The report highlighted six states with payroll increases of at least 23%: Virginia, Vermont, Oregon, Mississippi, New Mexico, and Utah. Of these, four states (Virginia, Vermont, Oregon, and Mississippi) saw decreases in student performance, with New Mexico showing no change and only Utah improving slightly.
Crucially, the research distinguishes between teacher and administrator compensation. The data suggests that expanding administrative staff, rather than teacher salaries, primarily drives the negative correlation. Between 2010 and 2022, administrative roles grew by 41% compared to just a 10% increase in regular teaching positions.
Rachel O'Brien, deputy public policy editor at Open the Books, noted that "administrator pay is most likely to blame for this negative correlation with student achievement," while acknowledging that teachers typically remain underpaid.
The report highlighted Miami-Dade County Public Schools as a counter-example, achieving the second-best exam scores among large cities in 2024 despite spending only $6,400 per student—the fifth lowest per-student expenditure among large urban districts. This demonstrates that efficient resource allocation, rather than merely increased spending, correlates with better outcomes.
These findings challenge the conventional approach to education reform that emphasizes increased funding without addressing spending allocation. With K-12 education spending nearing $1 trillion nationally and enrollment projected to decline 5.3% between 2024 and 2032, the current staffing trajectory may prove unsustainable.
The report suggests policymakers should scrutinize administrative growth, prioritize classroom spending, and examine successful low-cost models like Miami-Dade's rather than automatically increasing budgets. As one commentator noted in the report's discussion, "The fundamental problem with much of the public sector is that there's no real relationship between funding and outcomes."
Open the Books' research provides an evidence-based challenge to education funding orthodoxy, suggesting that how money is spent matters more than how much is spent. While the report doesn't advocate for reducing education funding, it raises important questions about resource allocation priorities and the hidden costs of administrative expansion in public education systems.
# Report on "The Public School Crisis: Higher Payrolls Associated with Worse Student Performance"
A groundbreaking analysis by Open the Books reveals a disturbing trend in American public education: increased school spending often correlates with declining student performance. Their comprehensive study of 12,531 public school districts across all 50 states challenges conventional assumptions about education funding.
The report's most striking revelation is the inverse relationship between payroll growth and student achievement. When researchers plotted percentage changes in state payrolls against changes in district national rankings between 2019 and 2023, they discovered a mild but concerning negative correlation of -0.32. States that significantly increased their educational payrolls often experienced declining test scores on the National Assessment of Educational Progress (NAEP).
In six states where payrolls increased by at least 23%, the results were particularly telling. Virginia, Vermont, Oregon, and Mississippi all saw decreases in student performance, while New Mexico showed no change and only Utah improved slightly. This pattern directly contradicts the commonly held belief that more funding automatically translates to better educational outcomes.
Crucially, the report distinguishes between teacher and administrator compensation. The issue appears rooted primarily in expanding administrative staff rather than inadequate teacher pay. Between 2010 and 2022, administrative roles grew by 41% compared to just a 10% increase in regular teaching positions. Rachel O'Brien, deputy public policy editor at Open the Books, noted that "administrator pay is most likely to blame for this negative correlation with student achievement."
This finding aligns with broader education trends showing ballooning non-instructional costs. Over the past two decades, many districts have added layers of bureaucracy while student enrollment has remained static or declined.
The report highlights Miami-Dade County Public Schools as a compelling counter-example. Despite spending only $6,400 per student (the fifth lowest among large urban districts), Miami achieved the second-best exam scores among large cities in 2024. This suggests that efficient resource allocation matters more than total spending.
As the fourth-largest district in the United States, Miami-Dade educates more than 350,000 students with significantly less per-pupil funding than counterparts like New York City (over $25,000) and Los Angeles ($13,500). Their success appears rooted in prioritizing classroom instruction over administrative expansion.
These findings arrive as American education faces fiscal challenges. With K-12 education spending nearing $1 trillion annually and student enrollment projected to decline 5.3% between 2024 and 2032, the current staffing trajectory may prove unsustainable. The report suggests policymakers should scrutinize administrative growth rather than automatically increasing budgets.
The Education Policy Institute has noted that many districts face "difficult choices" about resource allocation as funding pressures intensify. The Open the Books analysis provides evidence supporting a reconsideration of spending priorities.
This report doesn't suggest that teachers are overpaid or that funding doesn't matter. Rather, it reveals that how educational money is spent matters critically more than how much is spent. The evidence challenges policymakers to look beyond simply increasing education budgets to addressing systemic issues like administrative bloat that divert resources from classroom instruction.
As noted in the report's discussion section, "The fundamental problem with much of the public sector is that there's no real relationship between funding and outcomes." This analysis provides compelling evidence that this observation applies starkly to American public education, where more spending has often produced worse results.
