Special Report
States From Our Research Center

A User’s Guide to the Grading and Methodology

For Quality Counts 2021: School Finance
By EdWeek Research Center — June 01, 2021 4 min read
  • Save to favorites
  • Print

Methodology

Behind the Numbers

Quality Counts grades all 50 states in two key categories of school finance: overall spending on K-12 and equity, or just how fairly and evenly that money is distributed throughout a particular state.

But what’s behind those top-line numbers and letter grades? Here’s how it’s done:

The EdWeek Research Center collects the most recently available federal data from the Census Bureau, the U.S. Department of Commerce, and other sources—2018 data, in this case—to get a more detailed look at how much states spend on their public schools and how they go about spending it.

The states get scored and graded on eight separate indicators. Four of them deal with spending levels alone, and the other four on just how that funding gets spent, with an eye toward equity.

To make sure things are comparable, the researchers adjust some of these indicators for factors like regional cost differences and for students who may be more expensive to educate, such as low-income children and those with disabilities. All of these calculations then are blended for each state’s final A-F grade and numerical score.

Some of these school finance indicators are easy to grasp. Others are more technical. Here’s a quick and easy guide to the grading scale and each of the eight indicators that make up the school finance grade. For more detail, see this report’s full sources and notes.

The Grading Scale

Each state receives a numerical score for each of the indicator categories.

After rounding scores to the closest whole-number values, we assign letter grades based on a conventional A-F grading scale, as follows:

A = 93 to 100

A-minus = 90 to 92

B-plus = 87 to 89

B = 83 to 86

B-minus = 80 to 82

C-plus = 77 to 79

C = 73 to 76

C-minus = 70 to 72

D-plus = 67 to 69

D = 63 to 66

D-minus = 60 to 62

F = Below 60

Glossary

Wealth-Neutrality Score: Do tax-poor districts get left behind when it comes to school spending? This indicator offers some clues. It looks at two points: how much local property wealth a district has, and how much it actually spends on schools from local and state sources. A negative score means that poorer districts actually have more funding than richer ones on a statewide basis. And Alaska, despite having many poor, far-flung districts, comes out on top with a score of minus - 0.137.

McLoone Index: Just how balanced is district-by-district spending within a particular state? Think of the McLoone Index as a yardstick. Named after the late University of Maryland school finance professor Eugene McLoone, it measures how far a state has to go to assure that every district is at least at the spending midpoint compared with other districts. Perfect equity is defined as a score of 100. For example, a state with a score of 95 is closer to this target than a state with a 75.

Coefficient of Variation: Which states have the most uneven terrain when it comes to school funding? This indicator measures variations in spending between districts in each state. Some states are “flatter,” meaning many of their districts are clustered more closely together when it comes to spending. Others have a lot of peaks and valleys in districts’ K-12 funding. In this case, a perfect score is zero, and the higher the score, the more variation.

Restricted Range: How wide is the gap between the best-funded and worst-funded districts in a state? This indicator captures—in actual dollars—the funding difference between the highest- and lowest-spending school districts in each state. Alaska has the biggest gap, a whopping $20,757 between its top-spending districts and the lowest-spending ones. That difference is due, at least in part, to geographical factors in the huge, rural state.

Per-Pupil Expenditures: This tally of per-student spending by state is adjusted for regional cost differences across states. It captures factors like teacher and staff salaries, classroom spending, and day-to-day operations and administration, but not construction and other capital expenditures.

Percent of Students in Districts Spending at or Above the U.S. Average: This indicator shows that all students in only four states and the District of Columbia attend school in districts that spend at least the national average on K-12.

Spending Index: Here’s another way of looking at per-student spending: This index shows just how close a state’s school districts come in meeting the national per-pupil average—or, depending on your perspective, the degree to which lower-spending districts fall short of that national benchmark. In states that scored 100 percent, all districts met or cleared that bar.

Taxable Resources Spent on Education: This indicator shows just how big a bite of a state’s taxable resources K-12 education takes. It’s based on state and local revenues and the gross state product as reported in federal data.

Related Tags:

In March 2024, Education Week announced the end of the Quality Counts report after 25 years of serving as a comprehensive K-12 education scorecard. In response to new challenges and a shifting landscape, we are refocusing our efforts on research and analysis to better serve the K-12 community. For more information, please go here for the full context or learn more about the EdWeek Research Center.

A version of this article appeared in the June 02, 2021 edition of Education Week as Methodology

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Harnessing AI to Address Chronic Absenteeism in Schools
Learn how AI can help your district improve student attendance and boost academic outcomes.
Content provided by Panorama Education
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Science Webinar
Spark Minds, Reignite Students & Teachers: STEM’s Role in Supporting Presence and Engagement
Is your district struggling with chronic absenteeism? Discover how STEM can reignite students' and teachers' passion for learning.
Content provided by Project Lead The Way
Recruitment & Retention Webinar EdRecruiter 2025 Survey Results: The Outlook for Recruitment and Retention
See exclusive findings from EdWeek’s nationwide survey of K-12 job seekers and district HR professionals on recruitment, retention, and job satisfaction. 

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

States Which States Require the Most—and Least—Instructional Time? Find Out
There's no national policy dictating how much time students must attend classes each year. That leads to wide variation by state.
2 min read
Image of someone working on a calendar.
Chainarong Prasertthai/iStock/Getty
States More States Are Testing the Limits Around Religion in Public Schools
A wave of state policies mixing public education and religion are challenging the church-state divide in public schools.
4 min read
An empty classroom is shown at A.G. Hilliard Elementary School on Sept. 2, 2017, in Houston.
An empty classroom is shown at A.G. Hilliard Elementary School on Sept. 2, 2017, in Houston. Texas's state school board has approved a curriculum with Bible-infused lessons, the latest of a wave of state policies challenging the church-state divide in schools.
David J. Phillip/AP
States A State Changed Anti-Bias Guidelines for Teachers After a Lawsuit. Will Others?
The lawsuit filed by a conservative law firm took issue with state guidelines on examining biases and diversifying curriculum.
5 min read
Students arrive for classes at Taylor Allderdice High School in the Squirrel Hill neighborhood of Pittsburgh on Jan. 23, 2024.
Students arrive for classes at Taylor Allderdice High School in the Squirrel Hill neighborhood of Pittsburgh on Jan. 23, 2024. As part of a recent court settlement, Pennsylvania will no longer require school districts to follow its set of guidelines that sought to confront racial and cultural biases in education.
Gene J. Puskar/AP
States Oklahoma Superintendent Prays for Trump in Video He's Requiring for Students
Two of the state's largest districts say they won't show the video, in which Superintendent Ryan Walters prays for the president-elect.
2 min read
Ryan Walters, Republican state superintendent candidate, speaks, June 28, 2022, in Oklahoma City.
Ryan Walters, Republican state superintendent candidate, speaks, June 28, 2022, in Oklahoma City.
Sue Ogrocki/AP