New national and state data show public school spending at historic highs while enrollment and test performance continue to fall, intensifying scrutiny over how education dollars are being used.
By yourNEWS Media Newsroom
Public school spending across the United States has reached record levels, yet student enrollment continues to decline and academic performance remains in retreat, raising renewed questions about the effectiveness of taxpayer-funded education systems.
Since 2002, inflation-adjusted K-12 public school spending has increased by more than 35 percent, even as enrollment has dropped 2.1 percent over the past five years—representing more than one million fewer students nationwide. During that same period, student achievement has fallen, with only about one-third of students scoring at or above the proficient level in reading on the National Assessment of Educational Progress, according to data released by the National Assessment Governing Board.
Current NAEP results show that 40 percent of fourth graders are now performing below the basic level in reading, the highest share recorded since 2002.
These trends persist despite unprecedented per-pupil spending. In 2024, New York ranked as the nation’s highest-spending state at $32,284 per student, followed closely by California at $25,941. States with the lowest per-pupil spending include Utah, Idaho, and Mississippi.
According to the National Center for Education Statistics, average reading scores fell three points nationwide, while eighth-grade math scores declined by eight points. Federal data show these academic declines occurred as nationwide school district debt rose more than 2.1 percent, from $532.5 billion in 2021 to $543.9 billion in 2022, based on figures from the U.S. Census Bureau.
Rising expenditures have largely been driven by increased teacher and administrator salaries, along with expanded benefits. California now reports the highest average starting teacher salary in the nation at $58,409, while average teacher pay statewide stands at $101,084, according to figures cited by World Population Review.
Concerns over academic outcomes have intensified as spending climbs.
“The continued declines in reading scores are particularly troubling. Reading is foundational to all subjects, and failure to read well keeps students from accessing information and building knowledge across content areas,” National Assessment Governing Board member Patrick Kelly said in a news release.
Nationally, public school spending is approaching $1 trillion annually, reflecting a 35 percent increase between 2002 and 2023, according to a Reason Foundation report. Over that span, average per-student spending rose from $14,969 to $20,322.
Despite increased funding since the pandemic, states have seen limited broad improvement in outcomes as enrollment continues to fall and test scores remain below pre-pandemic levels.
California illustrates the disconnect between spending growth and performance. The state now spends $25,941 per pupil annually, totaling more than $100 billion each year. Yet California ranks 37th nationally in Pre-K-12 education, according to U.S. News & World Report, largely due to graduation rates and test performance.
State NAEP results show California’s fourth- and eighth-grade math scores below the national average. In 2024, only 35 percent of fourth graders and 25 percent of eighth graders scored at or above proficiency.
The Los Angeles Unified School District, the nation’s second-largest system, has seen enrollment decline sharply over two decades, falling from 747,009 students in 2003-04 to 387,152 this year. In June, LAUSD approved a $18.8 billion budget for 2025-26, projecting a $2.9 billion deficit against expected revenue of $15.9 billion.
“Los Angeles Unified has not experienced a decline in test scores since 2020,” an LAUSD spokesperson told The Center Square. “The district continues to deliver historic academic gains, outpacing both the state and other large districts.”
However, NAEP data show that in 2024, the average eighth-grade math score in Los Angeles was 260 out of 500, down from 262 in 2022, with only 18 percent of students reaching proficiency.
New York, the nation’s highest-spending state, has also seen enrollment decline as funding rises. New York City public schools spent about $25,810 per student in 2019, increasing to $32,284 in 2025, with projections nearing $34,717 in 2026. Enrollment dropped from 955,490 students in 2020-21 to 906,248 in 2024-25, with further declines projected.
“For the 2025-2026 school year, we are keeping all of our schools’ budgets stable, investing in all of our students, and ensuring our educators have the resources they need,” former New York Mayor Eric Adams said in a statement sent to The Center Square.
City officials report recent score gains, with English language arts and math proficiency improving during the 2024-25 school year. Yet statewide performance still trails national averages, according to the National Report Card.
Lower-spending states show mixed results. Mississippi increased per-pupil spending from about $9,189 in 2019-20 to nearly $12,998 in 2025, even as enrollment fell by more than 40,000 students. Idaho spent $10,246 per pupil in 2024 and continues to post test results near or above national averages.
NAEP data show Idaho’s eighth-grade reading proficiency declined from roughly 74 percent in 2018-19 to about 66.7 percent in 2023-24, still outperforming the 2024 national average of 56 percent proficiency.
“In spite of current challenges, public education in Idaho remains strong,” Idaho Department of Education public information officer Maggie Reynolds told The Center Square. “Over the last three years, we have seen marked achievement gains and the state continues to show measurable returns on its investments in student success.”
U.S. Department of Education Secretary Linda McMahon has repeatedly raised alarms over declining national performance despite rising spending.
“American students are testing at historic lows across all of K-12 … nearly half of America’s high school seniors are testing at below basic levels in math and reading,” McMahon said in a statement following the release of the 2024 NAEP results. “Despite spending billions annually on numerous K-12 programs, the achievement gap is widening, and more high school seniors are performing below the basic benchmark in math and reading than ever before.”
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