Elementary & Secondary Education

 

Elementary & Secondary Education

Information relating to K-12 education funding and policy. In fiscal 2011, Elementary and secondary (K-12) education represented the largest category of state general fund spending at 35.0 percent. However due to rising health care costs, K-12 education is now the second largest component of total state spending at 20.1 percent, slightly below Medicaid’s 23.6 percent of state budgets. In the coming years, states will likely face changes in K-12 education funding policies as Congress reauthorizes the Elementary and Secondary Education Act, better known as No Child Left Behind.

Staff Contact: Kathryn Vesey White

NASBO Publications

  • State fiscal conditions are modestly improving in fiscal 2014 with spending and revenues projected to rise above fiscal 2013 levels. Signs of fiscal distress continue to subside, and most states expect revenue and spending growth in fiscal 2014. Tax collections outperformed projections in fiscal 2013, and revenues experienced steady gains in most states. Although revenues are expected to increase in fiscal 2014, states are not projecting a rise in tax collections comparable to the gains in fiscal 2013.
  • The latest edition of NASBO’s State Expenditure Report finds that for the first time in the history of the State Expenditure Report total state spending declined in fiscal 2012, due to the combination of state funds slowly increasing and federal funds rapidly declining. It is estimated that expenditures returned to more typical growth levels in fiscal 2013 as both state and federal funds moderately increased.
  • After several years of slow recovery in the national economy, fiscal distress is finally beginning to subside for most states. However, the unemployment rate continues to remain high and the economic recovery is relatively weak compared to other post-recessionary periods. Thus, state operating budgets likely will be constrained by elevated expenditure pressures and slow revenue growth in the upcoming fiscal year.