ED465203 - Resource Allocation: Targeting Funding for Maximum Impact. Policy Brief - ERIC-ED465203 | Content Details

ED465203 - Resource Allocation: Targeting Funding for Maximum Impact. Policy Brief

Source Institution: Mid-Continent Research for Education and Learning, Aurora, co

Sponsoring Agency: Office of Educational Research and Improvement (ED), Washington, DC

Subject: Academic Achievement, Educational Finance, Elementary Secondary Education, Money Management, Resource Allocation

Abstract: Researchers have questioned whether additional resources impact student achievement--essentially,whether money matters. This policy brief examines the connections between student achievement and resource allocation with the aim of providing policymakers with guidance in this area. Key points are that targeted resource allocation especially benefits disadvantaged children, that improving the classroom environment for current teachers may be more cost-effective and yield greater gains than just raising teacher salaries, and that family variables are among the strongest indicators of student achievement. Differences in NAEP scores between states with students who have similar family characteristics suggest that resource allocation does matter and that states and policymakers may benefit from a closer examination of where their resources are being spent. Early intervention, whether in small- or large-scale programs, appears to reduce placement in special-education classes, increase graduation rates, and decrease the likelihood that students will engage in criminal activity. Policy issues and objectives include class-size reduction, offering prekindergarten programs, and exploring methods of improving teacher quality. By considering the costs and returns on this country's investment in education, policymakers can ensure that education dollars are spent most effectively and help the children who need it most. (Contains 17 references.) (RT) 1.