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Rising Education Spending Fails to Improve Student Outcomes

12/28/2025, 7:49:53 PM

Declining Enrollment and Test Scores Amid Increased Spending

Despite a significant increase in national education spending, student enrollment in public schools is declining, and test scores are falling across the United States. Since 2002, K-12 public school spending has risen by over 35%, yet enrollment has decreased by 2.1%, equating to more than one million students lost in the past five years. According to the National Assessment of Educational Progress (NAEP), only one-third of students nationwide are scoring at or above the proficient level in reading, with 40% of fourth graders performing below the basic level, the highest since 2002. In 2024, New York leads in per-pupil spending at $32,284, while California follows at $25,941. Despite these expenditures, average reading scores have dropped by three points, and eighth-grade math scores have fallen by eight points, largely attributed to the COVID-19 pandemic.

State-Specific Spending and Performance Discrepancies

California's education system exemplifies the trend of rising spending without corresponding improvements in performance. The state invests $25,941 per pupil but ranks 37th in Pre-K-12 education according to U.S. News & World Report. In 2024, only 35% of fourth graders and 25% of eighth graders in California were proficient in math. The Los Angeles Unified School District (LAUSD), the second-largest in the nation, has seen a significant enrollment drop from 747,009 in 2003-04 to 387,152 in 2024. Despite this, LAUSD officials claim that the district has not experienced a decline in test scores since 2020, asserting that it continues to achieve historic academic gains.

In New York City, where public schools spent approximately $25,810 per student in 2019, spending has surged to over $32,284 by 2025, with projections nearing $34,717 in 2026. However, enrollment has also declined from 955,490 students in the 2020-21 school year to an estimated 884,400 in 2026. Former New York Mayor Eric Adams emphasized the importance of maintaining stable budgets for schools amid these shifts.

Mixed Results and National Concerns

While New York City has reported improvements in test scores, with 56.3% of students meeting proficiency standards in English language arts in the 2024-25 school year, these results still fall below the national average. Conversely, states with lower per-pupil spending, such as Mississippi and Idaho, have also experienced enrollment declines but have shown better performance relative to their spending levels. For instance, Idaho's eighth-grade reading performance, while declining, remains above the national average.

U.S. Department of Education Secretary Linda McMahon has expressed concerns regarding the overall decline in student performance, noting that nearly half of America's high school seniors are testing below basic levels in math and reading. The widening achievement gap persists despite substantial investments in K-12 education.

Official Statements & Responses

Patrick Kelly, a member of the National Assessment Governing Board, remarked, “The continued declines in reading scores are particularly troubling. Reading is foundational to all subjects.” Meanwhile, Maggie Reynolds, public information officer for the Idaho Department of Education, stated, “In spite of current challenges, public education in Idaho remains strong.”

Conflicting Reports & Gaps

There are discrepancies in reported test scores and performance improvements among states. While LAUSD claims no decline in test scores, NAEP data indicates that only 18% of its students performed at or above the proficient level in 2024. Additionally, while New York City reports gains, comparisons to national averages reveal ongoing challenges.

Verbatim Quotes

“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,” — Linda McMahon, U.S. Secretary of Education

“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,” — Eric Adams, Former Mayor of New York City

“In spite of current challenges, public education in Idaho remains strong.” — Maggie Reynolds, Idaho Department of Education