Do School Funds Boost Achievement by Hiring Staff or Raising Salaries?

September 6, 2024

In recent years, ongoing debates have emerged regarding the most effective use of additional school funding. Should districts prioritize hiring more staff, or is increasing teachers’ salaries a better investment for improving student achievement? The decision is crucial, especially when schools encounter financial windfalls or experience fiscal expansions. This dilemma pivots on how schools can best allocate extra revenue to enhance educational outcomes. Each approach carries distinct implications for school budgets, teacher retention, and student performance. The complexity of this decision is underscored by fiscal data, labor policies, and the unique dynamics within different states.

The Rise in School Expenditures: An Overview

From 2002 to 2020, school expenditures in the U.S. saw a significant increase of 20% after adjusting for inflation. Despite this financial surge, the number of teachers only grew by 7%, which was in line with the student population growth, and their salaries barely kept pace with inflation rates. This discrepancy raises the question: what is driving the soaring costs in the education sector? Astonishingly, the primary culprits are a massive 75% increase in employee benefit costs and a substantial 20% uptick in non-teaching staff numbers. These figures suggest that schools are investing considerably more in areas outside of direct classroom teaching.

Analyzing these investments, a central question arises—are they translating into better academic outcomes for students? While support mechanisms such as better benefits and increased non-teaching staff might seem beneficial, their direct impact on student achievement remains contentious. The allure of bolstering support roles in schools is evident; they potentially address diverse student needs, from emotional well-being to logistical support. However, the return on investment concerning educational outcomes continues to be debated, raising the stakes for district decision-makers who must balance immediate needs with long-term academic priorities.

The Role of Non-Teaching Staff in Student Achievement

To address this, we need to understand the impact of non-teaching staff on student performance. Research by Paul E. Peterson and Carlos Lastra-Anadón, leveraging data from the National Assessment of Educational Progress (NAEP), found that in states without duty-to-bargain laws, increasing non-teaching staff, such as those providing nutritional, medical, social, and psychological services, positively impacted math achievement. These findings highlight the potential benefits that come from a holistic approach to education, where staff members address various student needs beyond traditional academic support.

However, not all non-teaching roles were beneficial. For instance, an increase in teacher aides showed no significant improvement in student outcomes, complementing previous studies. On the contrary, a higher number of staff in district offices often correlated negatively with math scores in states without duty-to-bargain laws. This implies that while certain support roles can enhance educational results, excessive administrative regulation might hinder learning. These nuanced findings suggest that merely expanding staff numbers should not be viewed as a panacea for educational challenges; careful consideration must be given to the specific roles and their direct impact on student learning.

The Impact of Duty-to-Bargain Laws

A striking aspect of the study is the role of state duty-to-bargain laws, which require school districts to negotiate with teachers’ unions. In states where such laws are enforced, additional staff appeared to have minimal impact on student achievement. Instead, these districts were more likely to allocate unexpected state revenues towards raising teacher salaries rather than hiring more employees. This trend underscores a significant divergence in resource allocation strategies influenced by regional labor policies, emphasizing that the presence of duty-to-bargain laws shapes whether schools invest in additional staffing or higher salaries.

This difference in priorities suggests that labor policies not only influence financial decision-making but directly impact educational effectiveness. In states with duty-to-bargain laws, the emphasis on teacher salaries might enhance teacher satisfaction and retention, indirectly benefiting student learning. However, the minimal impact on direct academic outcomes prompts further examination. It indicates that while teacher well-being is crucial, its effects on student achievement might be more complex, potentially necessitating additional supports or resources beyond salary increments alone.

School Finance Reforms and Hiring Practices

School finance reforms also play a crucial role in determining how districts utilize additional funds. In non-duty-to-bargain states, unexpected financial boosts often lead to the hiring of more teachers, which has been shown to positively impact math achievement. Conversely, in duty-to-bargain states, these funds are commonly used to increase teacher salaries rather than expanding the workforce. This difference highlights how regional policies and labor laws can steer the strategic allocation of resources.

It reflects the intricate balance districts must strike between expanding their employee base and addressing teacher compensation to enhance student achievement. The contrasting approaches underscore the complexity of educational finance, where district leaders must navigate various pressures, from labor negotiations to fiscal accountability, ensuring that their decisions align with overarching goals of student success. These finance reforms further exemplify how nuanced policy environments can shape the practical execution of educational funding, necessitating a context-sensitive approach to financial planning in schools.

Strategic Allocation of Resources: Teacher Salaries vs. Hiring More Staff

In recent years, there’s been an ongoing debate about how best to use additional school funding. Should districts hire more staff, or would increasing teachers’ salaries be a better way to boost student achievement? This decision is especially crucial in times of financial windfalls or fiscal expansions. The central issue is how to allocate the extra revenue to improve educational outcomes effectively. Each option has unique impacts on school budgets, teacher retention, and student performance. Hiring more staff could reduce class sizes, potentially leading to more individualized attention for students. However, raising teachers’ salaries might improve morale and reduce turnover, leading to a more experienced and stable teaching workforce. This complex dilemma is influenced by various factors, including fiscal data, labor policies, and the unique educational dynamics in different states. Ultimately, the challenge lies in balancing these elements to achieve the best results for students and schools.

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