Abstract
This study examines the impact of repealing adequacy-based funding on student test scores in poorer school districts. Contrary to expectations, scores improved for 2 years post-repeal. The article explored local spending as a possible reason. Despite funding changes, poorer districts increased spending on student support services like counseling, psychological, or health services. This shift toward student well-being may have mitigated the negative effects of losing adequacy-based funding, resulting in unexpected test score gains. These findings highlight the importance of local discretion in resource allocation, showing that tailored spending can enhance educational outcomes even amid financial challenges.
JEL Codes: I22, I24, I28, H52, H75
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