Education Spending: Where Does the Money Go?

Education |
By James V. Shuls | Read Time 2 minutes minutes

As the 2024 legislative session gets underway, we will undoubtedly hear more about teacher pay in Missouri. A key question we should be asking is this—where does all the money go?

Using data from the National Center for Education Statistics (Table 211.50 and Table 236.55), I calculated how many students it took to pay for the average teacher’s salary. I calculated this by dividing the average salary by per–pupil operating expenditures. In 1960, it took 13.3 students to generate the equivalent amount of money as a teacher’s salary. That number dropped steadily over time. By 2000, it was 5.7, and in 2020 it was just 4.4 students.

You read that right: fewer than five students in a class is enough to cover a teacher’s salary today.

So where does all that money go? Ben Scafidi, an economist at Kennesaw State University, has some ideas. He noted that from 1950 to 2015, the number of administrators and other staff has increased by 709% nationally. In that same time period, the number of students went up 100% and the number of teachers went up 243%.

In more recent years, the number of students in Missouri has been declining. Yet the number of teachers is going up.

There is a very simple way to increase teacher pay, and it does not require any legislation. School districts can make different staffing decisions—hire fewer administrators and free up dollars to pay teachers more.

About the Author

James V. Shuls is an associate professor of educational leadership and policy studies at the University of Missouri St. Louis. His work has been featured in numerous media outlets, including Phi Delta Kappan, Social Science Quarterly, Education Week, The Rural Educator, Educational Policy, the Arkansas Democrat-Gazette, and the St. Louis Post-Dispatch. He earned his Ph.D. in education policy from the University of Arkansas. He holds a bachelors degree from Missouri Southern State University and a masters degree from Missouri State University, both in elementary education. Prior to pursuing his doctorate, James taught first grade and fifth grade in southwest Missouri.

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