Sources and Levels of Education Revenues and Changes Over Time
Table 1 identifies the sources of education revenues since 1960. Most education dollars are provided by local and state governments, but there have been changes in the shares provided by the different levels of government. There are four periods of trends reflected by the numbers in Table 1 , the first from 1960 to 1980, the second from 1980 to 1990, the third from 1990 to the late 1990s, and finally the last period from 1997 to the present. In the 1960 to 1980 period, the trend was a rising federal and state share and a declining local share. The federal share peaked at 9.8 percent in 1980; the state share peaked just below 50 percent in the mid-1980s.
From 1980, however, the trends in sources of education revenues have become more complex. First, the federal role dropped in the 1980s to 6.1 percent. After 1990 the federal grew modestly to 7.0 percent where it has remained. From 1980 through the mid 1990s, the state role slipped from its nearly 50 percent level to the mid-40 percent range. Meanwhile, local shares of revenue rose. During the final period, which began around 1997, the state role began to rise again to roughly 50 percent in the 1999-00 school year. The local role slipped during this time from a high of almost 46 percent to just above 42 percent in 1999-00.
Table 1 . Sources of Public School Revenues, 1959-2000. (Percent)
| Year | Federal Sources | State Sources | Local Sources |
| 1959-60 | 4.4% | 39.1% | 56.5% |
| 1969-70 | 8.0 | 39.9 | 52.1 |
| 1979-80 | 9.8 | 46.8 | 43.4 |
| 1989-90 | 6.1 | 47.1 | 46.8 |
| 1990-91 | 6.2 | 47.2 | 46.7 |
| 1994-95 | 6.8 | 46.8 | 46.4 |
| 1995-96 | 6.6 | 47.5 | 45.9 |
| 1996-97 | 6.6 | 48.0 | 45.9 |
| 1997-98 | 7.1 | 48.7 | 44.2 |
| 1999-00 | 6.9 | 50.7 | 42.4 |
Sources: National Center for Education Statistics, Digest of Educaiton Statiscs 2001; National Education Association Rankings and Estimates 2000-01
Table 2 shows the levels of and changes in educational expenditures per pupil since 1960 (using inflation-adjusted dollars). The numbers show that education has been a fiscal growth industry over this four-decade period. In the 40-year period from 1960 to 2000, real educational expenditures per pupil increased by almost 200 percent, which is certainly not representative of an industry in fiscal decline. These increases occurred in times of enrollment growth (the 1960s), enrollment decline (the 1970s) and enrollment stability (the 1980s).
Moreover, rising educational expenditures occurred through periods of both economic decline and growth. Such consistent growth in per pupil dollars is characteristic of education from 1900 to 1990.
These numbers show that the country has provided a substantial investment in the country's public schools over the past 40 years. Despite the flat trends of the past few years, this consistent growth in revenues provided to public education does show a commitment to the country's youth and gives reason to be optimistic.
Table 2 . Educational Expenditures Per Pupil, 1959-2001
(Constant 1995-96 Dollars).
| Year | Expenditures per Pupil in Average Daily Attendance ($) |
Change (percent) |
| 1959-60 | $2,807 | - |
| 1969-70 | 4,427 | 57.7% |
| 1979-80 | 5,617 | 26.9 |
| 1989-90 | 7,653 | 36.2 |
| 1994-95 | 7,892 | 3.1 |
| 1995-96 | 7,829 | 0.7 |
| 1996-97 | 8,043 | 1.9 |
| 1997-98 | 8,339 | 3.7 |
| 1998-99 | 8,639 | 3.6 |
| 1999-00 (est.) | 8,7873 | 1.7 |
| 2000-01 (est.) | 8,830 | 0.4 |
Sources: National Center for Education Statistics, Digest of Educational Statistics 2001