The Effect of Funding on Student Achievement: Evidence from District of Columbia, Virginia, and Maryland

Abstract

The question of how to best serve the student populations of our country is a complex topic. Since public funding is limited, we must explore the best ways to direct the money to improve student outcomes. Previous research has suggested that socio-economic status is the best predictor of student achievement, while other studies suggest that the amount of money spent on the student is a more significant factor. In this paper, we explore this question and its impacts on Maryland, Virginia, and the District of Columbia schools. We conclude that the graduation rate has a direct relationship with unemployment, suggesting that funding towards improving out-of-school opportunities and quality of life will significantly improve students chances of success. We do not find a significant relationship between per-pupil spending and student achievement.