Does Progressive Finance Alter School Organizations and Raise Achievement? The Case of Los Angeles

Abstract

State finance reforms have raised per-pupil spending and elevated the achievement of disadvantaged students over the past half-century. But we know little about how fresh funding may alter teacher staffing or the social and curricular organization of schools, mediating gains in learning. We find that US$1.1 billion in new yearly funding—arriving to Los Angeles high schools after California enacted a progressive weighted-pupil formula in 2013—led schools to rely more on novice and probationary teachers. Schools that enjoyed greater funding modestly reduced average class size and the count of teaching periods assigned to staff in five subsequent years. Yet, high-poverty schools receiving higher budget augmentations more often assigned novice teachers to English learners (ELs) and hosted declining shares of courses that qualified graduates for college admission. Mean achievement climbed overall, but EL and poor students fell further behind in schools receiving greater funding.