Report: More money for schools doesn’t always lead to better outcomes

(The Center Square) – Georgia schools spent twice the amount allocated to them from the Quality Basic Education fund, but tracking individual programs is not possible, according to a report from the state auditor’s office.

The state’s 180 school systems spent $15 billion on instruction during the 2023 academic year but the funding amount based on the formula, commonly known as QBE, was only $7.8 billion.

The auditor’s office found some difficulty in getting exact data, according to the report. School systems don’t have to tie the funding to specific programs included in the formula, and the state does not monitor or require reporting. That makes the spending hard to track.

“While permitting system autonomy, prior audits have noted system flexibility can pose a risk to the state’s and systems’ assurance that certain populations are being effectively served when methods diverge from QBE programs’ original intent,” the report said. “When program requirements tied to additional QBE funding can be waived, there is less certainty that the additional funding for special populations is achieving its purpose.”

Giving schools more money has not always led to better student outcomes. Demographics provide a clearer picture, according to the report.

“For example, the lowest performing systems on average had a significantly higher percentage of students in poverty – 54% compared to 21% among the highest performing systems (systems interviewed agreed that poverty often impacts student outcomes),” the report said.

The Georgia Department of Education listed changes to the QBE formula, including the addition of a new weight for poverty, as one of its legislative priorities.

The Senate Appropriations Committee requested the report ahead of the 2025 legislative session, where the QBE formula is expected to be discussed again.

The committee asked to what extent do expenditures for QBE programs differ from the funding earned; how school systems’ administrative expenses changed over time; and if there is a relationship between school system spending and student outcomes.

Auditors also found that school administrative expenses grew 30% since fiscal year 2019, which is higher than the 19% inflation rate. Administrative positions increased by 10%, mainly due to COVID-19 relief funding.

“It is unclear whether the increases in these positions will be maintained once federal funding has expired,” the report said. “However, it should be noted that according to GaDOE staff, the increase in instructional specialists was due to the effect of the COVID-19 pandemic.”

GaDOE is an acronym for the Georgia Department of Education.

More positions were created in central offices than in individual schools. School-level spending grew by 19% compared to 43% in central offices from 2019 to 2023.

The main reasons behind the central office staffing were staffing, technology needs and COVID-19 costs, according to the report.

Georgia’s schools receive about 43% of their funding from the state and 17% from the federal government. Local funds, usually in the form of property taxes, make up 37%, while 2% of the money comes from other sources.