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PUBLIC SCHOOL ' iL <br /> FORUM of north carolina <br /> INTRODUCTION <br /> For more than 30 years,the Public School instructional expenses,exacerbating face substantially greater financial <br /> Forum of North Carolina's Local School inequities in educational opportunities burden to support public education while <br /> Finance Study has highlighted variations between those with the least and the still finding that their schools are more <br /> and trends in local spending for public greatest need. poorly resourced than those in wealthier <br /> education across our state's 100 counties. counties. <br /> The purpose of this annual study is to In recent years,our annual studies have <br /> isolate local spending from state and consistently identified two key trends that These funding disparities have tangible <br /> federal spending to examine the capacity have led to deepened educational inequity impacts in North Carolina classrooms. <br /> and actual effort of counties to support across districts over time. For instance, local salary supplements <br /> public schools.The Local School Finance for educators are generally substantially <br /> Study focuses not only on the amount First,there is a widening gap between larger in high-wealth and larger districts, <br /> that counties spend on schools, but also wealthier counties and those with lower which better positions them to attract <br /> on each county's investment in relation to levels of wealth.As a result,there is and retain top talent. Many rural districts, <br /> their taxable resources. a growing disparity in the ability of which already face challenges in recruiting <br /> counties to provide their schools with the and retaining highly skilled teachers,are <br /> Under North Carolina's school finance resources they need, particularly given at an even greater disadvantage if they <br /> system,established nearly nine decades the increasing role of local spending are not able to offer competitive pay. In <br /> ago,it is the state's responsibility to over time. low-wealth districts,schools are often <br /> fund instructional expenses(including unable to offer the diversity of course <br /> personnel)while county governments Second,we demonstrate that wealthier offerings found in wealthier counties, <br /> pay for capital expenses(buildings and counties are able to allocate more meaning that many students in these <br /> maintenance). However,cuts to the state local dollars to public schools while districts are unable to access advanced <br /> budget during the most recent Great simultaneously making less taxing courses or electives that are important in <br /> Recession have yet to be restored to effort. Because wealthier counties have developing college and career readiness. <br /> pre-recession spending levels,and more taxable resources,they are able to And while higher wealth districts are <br /> districts across the state are struggling to keep tax rates low while still generating able to tap deeper wallets as they cope <br /> meet their students' needs.This,coupled significant revenue.Conversely, lower with inadequate state-level investments, <br /> with increasing costs for education wealth counties with fewer taxable low-wealth districts must scramble to pull <br /> stemming from population growth and resources have to make greater taxing together scarce local resources to provide <br /> a changing economy, has forced local effort to support their schools.Thus, even the most basic classroom supplies <br /> districts to take on a larger share of residents living in lower wealth districts such as paper, pencils and textbooks. <br /> TABLE <br /> INTRODUCTION 16 APPENDICES <br /> 3 2017-2018 TOTAL LOCAL SPENDING PER STUDENT 16 TABLE 1:RANKING OF ADJUSTED PROPERTY <br /> VALUATIONS PER STUDENT <br /> 4 HIGHLIGHTS OF THE 2020 LOCAL SCHOOL <br /> FINANCE • EFFORT• •• • OF CAPITAL • <br /> UTLAY <br /> AND DEBT <br /> -• V.STATE OF NORTH -• <br /> AN INTRODUCTION FUNDING FOR • • SMALL COUNTIES <br /> •• • • PAYS FOR WHAT? 20 TABLE 4:ABILITY TO PAY <br /> 10 LOCAL SCHOOL FINANCE STUDY 2020:GAPS AND TRENDS 21 TABLE 5:RELATIVE EFFORT <br /> 13 LOOKING AHEAD 22 <br /> GLOSSARY <br /> 14 NOTES ON METHODOLOGY <br />