# NCES Blog

### National Center for Education Statistics

More than 50 years ago, Congress established Title I, Part A funding (generally just called Title I) to support school districts in educating the nation’s economically disadvantaged students. Today, billions of dollars in Title I funding are distributed to school districts across the country through four grants, using a complex set of formulas.

A new report from the National Center for Education Statistics (NCES) provides a look at how Title I funds are allocated and how the current formulas affect school districts of various sizes, socioeconomic status, and geographic locales, such as rural or urban. The Study of the Title I, Part A Grant Program Mathematical Formulas was conducted in response to a congressional mandate under the Every Student Succeeds Act (ESSA), which was passed in 2015.

In fiscal year 2015 (FY 15), the total Title I allocation per formula-eligible child in the United States was \$1,227.[1],[2] However, states varied in their total Title I final allocation per formula-eligible child, ranging from \$984 in Idaho to \$2,590 in Vermont, a difference of \$1,606. (NOTE: A child is "formula eligible" if he or she is ages 5–17 and living in a family below the national poverty level or one that is receiving Temporary Assistance for Needy Families [TANF], a neglected and delinquent child located in a locally funded institution, or a foster child.)

Total Title I allocations per formula-eligible child also differed by geographic locale, district poverty level, and district size:

• The locales with the highest total Title I final allocations were the most densely and least densely populated areas: large cities (\$1,466) and remote rural areas (\$1,313);
• The poorest districts (i.e., those in the highest poverty quarter) had the highest total Title I allocations (\$1,381), and the least-poor districts (i.e., those in the lowest poverty quarter) had the lowest total Title I allocations (\$1,023); and
• The smallest districts (those with a 5- to 17-year-old population of less than 300) had the highest total Title I final allocation (\$1,442) compared with districts of all other population sizes. The largest districts (those with a population of 25,000 or more) had the second-highest allocation (\$1,323). The allocation was lowest (\$1,107) for districts with a population of 5,000 to 9,999.

Because each of the federal allocation formulas use a series of provisions, there is not a direct link between the percentage of formula-eligible children in a district or state and the percentage of federal funds allocated to that district or state. It is also important to note that there is no direct link between the formula-eligible children upon whom the distribution of funds is based and the children who receive services from Title I. Today, 95 percent of children served by Title I receive services in schoolwide programs that serve all children in the school, regardless of whether they are formula eligible or not. Altogether, about 11.6 million children are counted as formula eligible in the United States, but more than twice that amount (about 25 million students) receive Title I services.

The 250-page report includes a number of other findings, including

• An overview of the Title I funding formula process;
• Detailed analyses for each of the grant programs (Basic, Concentration, Targeted, and Education Finance Incentive Grants);
• Alternative analyses that isolate components of each grant program;
• American Community Survey-Comparable Wage Index (CWI) adjusted allocations; and
• A table of Title I, Part A total allocations by grant type and school district.

To access the full report, please visit the NCES website at https://nces.ed.gov/pubs2019/titlei/.

By Tom Snyder and Rachel Dinkes

[1] The analytic metric used in the report is the amount of funding allocated for the designated Title I grant divided by the number of formula-eligible children used in the computation for that specific grant.

[2] Detailed information on the Title I formula grant process and the components of the mathematical formulas can be found in the report’s introduction.

In the long-standing conversation of high college costs, ever wonder what public colleges and universities owe? For Fiscal Year (FY) 2017, the National Center for Education Statistics (NCES) using the Integrated Postsecondary Education System (IPEDS) found that 1,624[1] public institutions carried debt and total financial obligations of \$451 billion in current dollars (see figure 1).

New finance data from IPEDS can now provide more insight about these obligations than was previously available.

Several common financial obligations or liabilities[2] can be found across all U.S. postsecondary institutions. A portion of an institution’s liabilities can be attributed to pension benefits and contributions (i.e., pension liabilities). Since fiscal year 2015, IPEDS collected data on these obligations as a specific part of the total debt held by public postsecondary institutions.  For example, the total amount of pension benefits and contributions that public institutions owed their employees in FY 2017 was \$95 billion (see figure 1).

Before FY 2015, institutions did not have to report to NCES their pension liabilities and the total liabilities for public institutions were \$304 billion in FY 2014.  However, after the change in reporting standards, the total liabilities for all public institutions jumped to \$395 billion in FY 2015. This increase is greater than increases in all other fiscal years from 2012 to 2017. This finding suggests that the implementation of the new pension reporting standards may have contributed to the change in the increasing trend of total liabilities data.

Reporting Change in Context

Prior to the revised pension reporting standards, dating back to 1997, public institutions reported the difference between their annual required contribution to the pension plan(s) and the actual annual contribution (e.g., net pension obligation). The revised standards—known as Government Accounting Standards Board (GASB) Statements 67 and 68—require institutions to report the entire unfunded pension amount (e.g., net pension liability), not just the amount of deficiency in annual payments.

Including the full current pension liability of the institution instead of the annual shortfall in pension funding of the institution resulted in large shifts in the balance sheet of many public institutions. For example, if an institution had a total of \$2 million in pension liabilities, prior to 2015 this institution would not report the \$2 million in net pension liabilities, just the amount below the required contribution for that year that was actually paid. Now, this institution must report the full \$2 million in net pension liabilities, even if the annual required contribution had been paid in full. This revision of the financial reporting standards resulted in increased transparency and accuracy of the total amount of liabilities reported by institutions.

NCES encourages educational researchers to use IPEDS data—a primary source on U.S. colleges, universities, and technical and vocational institutions. For more information about the IPEDS data, visit the IPEDS Survey Components page.

While finance data from the IPEDS collection may seem to be targeted for accountants and business officers, researchers interested in a postsecondary institution’s financial health can explore through expense and revenue metrics, resulting in possible data-driven, bellwether information. To learn more about an institution’s finance data, in particular its pension benefits, click here for the current finance survey materials; archived changes to the survey materials in 2015–16 (FY 2015)—such as the implementation of the new pension reporting standards; and links to Video Tutorials, FAQs, glossary definitions and other helpful resources.

By Bao Le, Aida Ali Akreyi, and Gigi Jones

[1] This total includes 735 four-year public institutions, 889 two-year public institutions, and 63 administrative public system offices (41 four-year and 22 two-year offices). Administrative system offices can report on behalf of their campuses. The four non-Title IV-eligible U.S. service academics are not included.

[2] Liabilities include long-term debts (current and noncurrent) as well as other current and noncurrent liabilities such as pensions, compensated absences, claims and judgments, etc.

Spending on elementary and secondary education increased in school year 2015–16 (Fiscal Year 2016). At the national level, education spending has recovered from the economic downturn between 2009 and 2013. This is the third consecutive year spending increased, reversing a decline in spending for the prior four years after adjusting for inflation. These findings come from a recently released report from the National Center for Education Statistics (NCES).

The First Look report, Revenues and Expenditures for Public Elementary and Secondary Education: School Year 2015–16 (Fiscal Year 2016) is based on data from the National Public Education Finance Survey (NPEFS), a component of the Common Core of Data (CCD).

The amount spent per student for the day-to-day operation of public elementary and secondary schools rose to \$11,841 in Fiscal Year (FY) 16.[1] Current expenditures per student increased by 2.9 percent between FY 15 and 16, following on the heels of an increase of 3.2 percent from the prior year, after adjusting for inflation.[2]  Although spending per student was higher in FY 16 than in FY 07, it had decreased each year from FY 09 to FY 13.

NOTE: Spending is reported in constant FY 16 dollars, based on the Consumer Price Index (CPI).
SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal years 2007 through 2016.

Salaries and wages make up the largest proportion of current expenditures, but have increased at a much slower rate than employee benefits or other expenditures.[3]  After peaking at \$7,047 per pupil in FY 09, salaries and wages declined to a low of \$6,452 per pupil in FY 2013, and increased to \$6,748 per pupil in FY 16.

The proportion of salaries and wages in current expenditures per pupil decreased from 60.2 percent in FY 09 to 57.0 in FY 16. In contrast, the proportion of employee benefits in current expenditures per pupil increased from 20.4 percent in FY 09 to 22.9 percent in FY 16.

NOTE: Spending is reported in constant FY 16 dollars, based on the Consumer Price Index (CPI).
SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal years 2007 through 2016.

At the state level, spending on current expenditures per student ranged from a low of \$7,006 in Utah to a high of \$22,231 in New York. Current expenditures per student were at least 40 percent higher than the national average in the following states and jurisdictions:

• New York (\$22,231)
• District of Columbia (\$21,135)
• Connecticut (\$19,615)
• New Jersey (\$19,041)
• Vermont (\$19,023)
• Massachusetts (\$16,986)

### Current expenditures per student for public elementary and secondary education, by state: Fiscal year 2016

SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal year 2016

Between FY 14 and FY 16, current expenditures per student increased by 3 percent or more in 29 states, and by 1 to less than 3 percent in 15 states. Increases in current expenditures per student from FY 14 to FY 16 were highest in California (16.4 percent), Washington (9.9 percent), Hawaii (9.3 percent), New York (8.8 percent), and Pennsylvania (8.2 percent).

NOTE: Spending is reported in constant FY 16 dollars, based on the Consumer Price Index (CPI).
SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal years 2014 and 2016.

The recently released report also presents national and state data on public school funding by source.[4] Total education funding increased by 4.0 percent (from \$652.1 to \$678.4 billion) from FY 15 to FY 16 following an increase of 3.3 percent from FY 14 to FY 15.  Local funding increased by 3.7 percent (from \$291.1 to \$303.8 billion), state funding increased by 4.9 percent (from \$303.6 to \$318.6 billion), and federal funding slightly increased by 1.1 percent (from \$55.4 to \$56.0 billion).

SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal years 2007 through 2016.

The percentage of total funding from federal sources accounted for approximately 9 percent of total funding in both FY 07 and FY 16; however, there were notable fluctuations during this period. The federal percentage increased from 8.2 percent of funding in FY 08 to 12.5 percent of funding in FY 11. In part, this increase reflects the impact of the American Recovery and Reinvestment Act (ARRA). As the funds from the program were spent, the federal percentage decreased from 10.2 percent of total funding in FY 12 to 8.3 percent in FY 16.

Local sources accounted for 44.8 percent of total funding in FY 16, and have been relatively stable over the past 10 years. The percentage of total funding from state sources decreased from a high of 48.3 percent in FY 08 to 43.4 percent in FY 10, and has since increased to 47 percent in FY 16.

[1] Spending refers to current expenditures. Current expenditures are comprised of expenditures for the day-to-day operation of schools and school districts for public elementary and secondary education, including expenditures for staff salaries and benefits, supplies, and purchased services. Current expenditures include instruction, instruction-related, support services (e.g., social work, health, and psychological services), and other elementary/secondary current expenditures, but exclude expenditures on capital outlay, other programs, and interest on long-term debt.

[2] In order to compare spending from one year to the next, expenditures are converted to constant dollars, which adjusts figures for inflation.

[3] Other expenditures include current expenditures other than salaries, wages, and employee benefits, such as purchased services, tuition, supplies, etc.

[4] Funding refers to revenues. Revenues are comprised of all funds received from external sources, net of refunds, and correcting transactions. Noncash transactions, such as receipt of services, commodities, or other receipts in kind are excluded, as are funds received from the issuance of debt, liquidation of investments, and nonroutine sale of property.

Across the country, hallways and classrooms are full of activity as students head back to school for the 2018–19 academic year. Each year, the National Center for Education Statistics (NCES) compiles some back-to-school facts and figures that give a snapshot of our schools and colleges for the coming year. You can see the full report on the NCES website, but here are a few “by-the-numbers” highlights. You can also click on the hyperlinks throughout the blog to see additional data on these topics.

The staff of NCES and the Institute of Education Sciences hopes our nation’s students, teachers, administrators, school staffs, and families have an outstanding school year!

# 50.7 million

The number of students expected to attend public elementary and secondary schools this year—slightly more than in the 2017–18­ school year (50.6 million). The racial and ethnic profile of these students includes 24.1 million White students, 7.8 million Black students, 14.0 million Hispanic students, 2.6 million Asian students, 0.2 million Pacific Islander students, 0.5 million American Indian/Alaska Native students, and 1.6 million students of Two or more races.

About 5.9 million students are expected to attend private schools this year.

# 16.0

The expected number of public school students per teacher in fall 2018. This ratio has remained consistent at around 16.0 since 2010. However, the pupil/teacher ratio is lower in private schools (12.3) and has fallen since 2010, when it was 13.0.

# \$12,910

This is the projected per-student expenditure in public elementary and secondary schools in 2018–19. Total expenditures for public elementary and secondary schools are projected to be \$654 billion for the 2018–19 school year.

# 3.6 million

The number of students expected to graduate from high school this academic year, including about 3.3 million from public schools and nearly 0.4 million from private schools.

# 19.9 million

This is the number of students expected to attend American colleges and universities this fall—higher than the fall 2000 enrollment of 15.3 million but lower than the peak of 21.0 million in 2010. About 13.3 million students will attend four-year institutions and 6.7 million will attend two-year institutions.

# 56.5%

The projected percentage of female postsecondary students in fall 2018, for a total of about 11.2 million female students, compared with 8.7 million male students.

By Lauren Musu, NCES and Molly Fenster, American Institutes for Research

By Stephen Q. Cornman and Lauren Musu-Gillette, NCES; Lei Zhou, Activate Research; and Malia Howell, U.S. Census Bureau

Nationally, spending on elementary and secondary education increased in school year 2014–15 (Fiscal Year 2015). This is the second consecutive year spending has increased, reversing a decline in spending for the prior four years after adjusting for inflation. These findings come from a recently released report from the National Center for Education Statistics (NCES).

The First Look report, Revenues and Expenditures for Public Elementary and Secondary Education: School Year 2014–15 (Fiscal Year 2015) is based on data from the National Public Education Finance Survey (NPEFS), a component of the Common Core of Data (CCD).

The amount spent per student for the day-to-day operation of public elementary and secondary schools rose to \$11,454 in Fiscal Year (FY) 15.[1] Current expenditures per student increased by 2.8 percent between FY 14 and 15, following an increase of 1.2 percent from the prior year, after adjusting for inflation.[2]  Despite these recent increases, spending per student decreased each year from FY 09 to FY 13 and the FY 15 amount spent per student was lower than the amounts spent in FY 08, FY 09, and FY 10.

NOTE: Spending is reported in constant FY 15 dollars, based on the Consumer Price Index (CPI).
SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal years 2006 through 2015.

At the state level, spending on current expenditures per student ranged from a low of \$6,751 in Utah to a high of \$20,744 in New York. In addition to New York, current expenditures per student were at least 40 percent higher than the national average in the following states and jurisdictions:

• District of Columbia (\$20,610);
• Connecticut (\$19,020);
• New Jersey (\$18,838);
• Vermont (\$18,769);
• Massachusetts (\$16,566);
• and Wyoming (\$16,047).

Current expenditures per student for public elementary and secondary education, by state: Fiscal year 2015

SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal year 2015.

Between FY 14 and FY 15, current expenditures per student increased by 3 percent or more in 12 states, and by 1 to less than 3 percent in 23 states. Increases in current expenditures per student from FY 14 to FY 15 were highest in Alaska (8.6 percent), California (7.3 percent), Texas (4.8 percent), Illinois (4.7 percent), and Maine (4.6 percent).

NOTE: Spending is reported in constant FY 15 dollars, based on the Consumer Price Index (CPI).
SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal years 2013 through 2015.

The recently released report also presents national and state data on public school funding by source.[3] Total funding increased by 3.3 percent (from \$628.2 to \$648.6 billion) from FY 14 to FY 15, which primarily reflected funding increases at the local and state levels. Local funding increased by 3.3 percent (from \$282.5 to \$292.0 billion), state funding increased by 3.7 percent (from \$290.7 to \$301.6 billion), and federal funding remained about level with an increase of 0.2 percent (from \$54.9 to \$55.0 billion).

SOURCE: U.S. Department of Education, National Center for Education Statistics, Common Core of Data (CCD), "National Public Education Financial Survey," fiscal years 2006 through 2015.

The percentage of total funding from federal sources accounted for approximately 9 percent of total funding in both FY 06 and FY 15; however, there were notable fluctuations during this period. The federal percentage increased from 8.2 percent of funding in FY 08 to 12.5 percent of funding in FY 11. In part, this increase reflects the impact of the American Recovery and Reinvestment Act (ARRA). As the funds from the program were spent, the federal percentage decreased from 10.2 percent of total funding in FY 12 to 8.5 percent in FY 15.

Local sources accounted for 45.0 percent of total funding in FY 15, and have been relatively stable over the past 10 years. The percentage of total funding from state sources decreased from a high of 48.3 percent in FY 08 to 43.4 percent in FY 10, and has since increased to 46.5 percent in FY 15.

[1] Spending refers to current expenditures. Current expenditures are comprised of expenditures for the day-to-day operation of schools and school districts for public elementary and secondary education, including expenditures for staff salaries and benefits, supplies, and purchased services. Current expenditures include instruction, instruction-related, support services (e.g., social work, health, and psychological services), and other elementary/secondary current expenditures, but exclude expenditures on capital outlay, other programs, and interest on long-term debt.

[2] In order to compare spending from one year to the next, expenditures are converted to constant dollars, which adjusts figures for inflation.

[3] Funding refers to revenues. Revenues are comprised of all funds received from external sources, net of refunds, and correcting transactions. Noncash transactions, such as receipt of services, commodities, or other receipts in kind are excluded, as are funds received from the issuance of debt, liquidation of investments, and nonroutine sale of property.