School Funding a Major Issue in the USA

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School finance is a major issue throughout the United States. The distribution of school funds is completed using different methods throughout, and the correct process must be selected to accommodate wealthy and poor districts. Local school districts are affected by the distribution of funds based on the value of the property in the district. Concerned citizens can be prepared for school district changes in revenue by staying informed of what is occurring in their community.

State Distributions Distribution of educational funds to school districts in the state of Texas is a major job.

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The Texas Education Agency has the responsibility of providing and distributing funds for all 8061 public and charter schools in Texas. Currently, the distribution of funds is based on the WADA (Weighted Average Daily Attendance) system. ‘WADA’ refers to the number of students in weighted average daily attendance, which is calculated by dividing the sum of the school district’s allotments under Subchapters B and C, subtracting any transportation allotment and any allotment under Section 42.158, and deducting 50 percent of the adjustment under Section 42.02, by the basic allotment for the relevant year. (Texas Education Agency) If tasked with distributing state funds to all Texas schools, it is necessary to consider property taxes and abide by the “Robin Hood” regulations, in addition to using the WADA approach.

Chapter 41 of the Texas Education Code establishes provisions for certain school districts to share their local tax revenue with other districts, based on their wealth or poverty in relation to property. This system, known as “Robin Hood,” requires wealthier districts to redistribute their resources to support poorer districts. The redistributed funds, also known as “recaptured” funds, aid in the financing of public education in property poor districts. However, this method of allocation is not favored by wealthy districts, partly because some of the recaptured funds are also directed towards local charter schools.

Despite the controversial nature of the “Robin Hood” method, Texas has chosen to employ this approach in allocating funds to underprivileged property school districts. To offset some of the recaptured funds, these districts have the opportunity to apply for various state grants. Notably, certain districts have secured grants as high as $40,000 for half of their schools. It is worth mentioning that not all states utilize the WADA method in distributing school funds, as some opt for the Average Daily Membership approach.

The ADM allows states to provide funding based on the school data from the previous school year, which could pose a problem if the projected number was too high, as the excess amount received must be repaid by the school district. However, using the ADA method for distributing school funds has multiple advantages. One such advantage is that it serves as an incentive for school districts to enhance attendance, as students tend to exhibit regular attendance when there is a reward or some extrinsic motivation involved.

The transition from ADM to ADA would certainly increase the financial incentives for school districts to maintain a high level of attendance throughout the year. However, providing more money to disadvantaged school districts does not guarantee a strong relationship between cost and quality among districts. Research conducted by Cole and Jencks suggests that factors such as salaries and facilities only have a minor impact on student achievement compared to the much larger influence of their intelligence and family background (Brimley 2008). Nevertheless, grants and incentives can be effective for equalizing funds and maximizing the relationship between cost and quality. It is crucial for school districts to find ways to attract knowledgeable and committed teachers, which can be achieved by offering stipends for teacher shortage areas and sign-on bonuses. It is important for districts to continually provide incentives to retain exceptional teachers, although teacher tenure can occasionally result in complacency among good teachers.

Having tenure provides educators with a secure and consistent job for a set period of time. Local schools often undergo changes in the education system, influenced by various factors at the local, state, and federal levels. To be prepared for fluctuations in funding and expenses, it is vital to stay updated. Attending meetings like school board sessions, PTA gatherings, and city council assemblies is an effective way to remain informed about local developments.

In the past, funding education was mainly the responsibility of certain stakeholders such as boards of education, school administrators, state departments of education, and state legislatures. However, it has now become a crucial concern for all citizens (Brimley 2008). All citizens have the chance to attend monthly school board meetings and can also contribute to their local school’s Parent-Teacher Association (PTA) to stay informed about their district. By actively participating in these meetings, citizens can directly observe the events occurring within their own school district.

This would eliminate citizens from hearing secondhand information from the media. The local news and newspaper provide informative updates on changes in educational funds, such as increases in property and school taxes, reduction in force due to economic factors, student-teacher ratios, and school transfers within a school district. A reduction in force refers to the lay off or demotion of employees resulting from work or funding shortages, organizational changes, or other factors. Some districts may also hold community votes on school bonds that could lead to higher property, school, and county taxes for taxpayers. In conclusion, education is highly valued by citizens in the United States, and most states aim to equally distribute educational funds using methods like ADA or ADM.

When distributing funds, states must consider other factors in addition to taxpayers’ opposition to property tax increases for education. To stay informed about educational changes in their community, taxpayers can attend school board and city council meetings.


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School Funding a Major Issue in the USA. (2017, Feb 22). Retrieved from

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