School Finance - Actual instructional expenses in Pennsylvania

School Finance - Actual instructional expenses

Downloading image...

Why This Indicator Matters

Analyzing data related to Actual Instruction Expense (AIE) is essential for understanding how resources are allocated towards educating students. AIE reflects all expenses reported by a school district not related to health services, transportation, financing, and other programs. [1] In other words, AIE consists of expenses directly associated with classroom instruction, including teacher salaries, classroom supplies, and educational materials. By examining AIE data, policymakers and school administrators can identify disparities in educational spending across districts, revealing whether students in low-income areas have access to the same quality of instruction as those in wealthier districts.[2]

This is particularly important in Pennsylvania, which has one of the most inequitable public school systems in the country.[3] The implications for these disparities are significant, as students from lower-income districts tend to perform worse on standardized tests, are more likely to be chronically absent from school, and are less likely to graduate on-time.[4] In addition to poor academic outcomes, these students are also more likely to experience long term adverse effects, such as low educational attainment, limited career opportunities, and the perpetuation of poverty.

[1] Commonwealth of Pennsylvania. (2024). Expenditures Glossary of Terms. Department of Education. https://www.education.pa.gov/Teachers%20-%20Administrators/School%20Finances/Finances/AFR%20Data%20Summary/Pages/Expenditures.aspx

[2] Morgan, I., & Amerikaner, A. (2018). Funding Gaps 2018: An Analysis of School Funding Equity across the U.S. and within Each State. Education Trust. https://files.eric.ed.gov/fulltext/ED587198.pdf

[3] Lapp, G. & Shaw-Amoah, A. (2023). Pennsylvania School Funding and School Staffing Disparities. Research for Action. https://www.researchforaction.org/research-resources/k-12/pennsylvania-school-funding-and-school-staffing-disparities/

[4] The Commonwealth Institute. (2017). Unequal Opportunities: Fewer Resources, Worse Outcomes for Students in Schools with Concentrated Poverty. https://thecommonwealthinstitute.org/tci_research/unequal-opportunities-fewer-resources-worse-outcomes-for-students-in-schools-with-concentrated-poverty/#:~:text=Similarly%2C%20almost%20all%20high%20schools,likely%20to%20graduate%20on%2Dtime

Definition and Source

PROVIDER

Definition

Actual Instruction Expense - Includes all general fund expenditures as reported on the annual financial report by the school districts except those expenditures for health services, transportation, debt service, capital outlay, homebound instruction, early intervention, community/junior college education programs and payments to area vocational-technical schools. Deductions are also made for selected local, state and federal revenues and for refunds of prior year expenditures and receipts from other local education agencies. It is calculated in accord with Section 2501 of the “Pennsylvania Public School Code of 1949.”

Actual Instruction Expense per Weighted Average Daily Membership (AIE/WADM) - Actual instruction expense divided by the weighted average daily membership.

Weighted Average Daily Membership (WADM) - The assignment of weight by grade level to the average daily membership. The current weighting is half-time kindergarten at 0.5, full-time kindergarten at 1.0, elementary (grades 1-6) at 1.0, and secondary (grades 7-12) at 1.36.

Data Source

Pennsylvania Department of Education, Bureau of Budget and Fiscal Management.

Notes

The state instructional expense per weighted ADM represents the median figure.

ND = No Data Available.

Last Updated

January 2024

Location

School Finance - Actual instructional expenses in Pennsylvania