$89 Billion Vanishes — Kids Still Can’t Read

A collection of colorful school supplies including notebooks, pens, and scissors on a desk

New York taxpayers now shell out over $36,000 per student annually while their children rank near the bottom nationally in math and reading, exposing a staggering disconnect between spending and educational achievement.

Story Snapshot

  • New York’s per-pupil spending hit $36,293 in 2024-25, nearly double the national average, yet fourth graders rank 32nd in reading and 46th in math nationally
  • Washington D.C. spent $37,835 per student in 2020-21, approaching $40,000 in some districts while academic performance remains mediocre
  • Total spending rose 21% in New York over four years while teacher salaries and benefits consume 79% of education budgets
  • Low-spending states like Idaho manage with $11,686 per pupil, raising questions about where the money actually goes in high-cost states

Record Spending Produces Middling Results

New York State’s public school system consumed $89 billion in 2024-25, translating to $36,293 per student, according to the Citizens Budget Commission. This represents a 21% increase since 2020-21 and positions New York 91% above the national average. Despite this extraordinary investment, New York fourth graders rank 32nd nationally in reading and a dismal 46th in math on NAEP assessments. Washington D.C. mirrors this pattern, spending $37,835 per pupil in 2020-21 with similarly underwhelming academic outcomes. These figures starkly contrast with the national average of approximately $16,280 in current expenditures per student.

Where the Money Goes

The National Center for Education Statistics reveals that salaries and benefits devour 79% of public education budgets, with support services accounting for 35-36% of total expenditures. Since 2012-13, when per-pupil spending hit a low of $13,952 nationally, support service costs have surged 17% while instructional spending increased at a slower pace. New York’s state aid jumped 29% since 2020-21, funded through property taxes averaging 4.73% of household income. Local and state governments contribute 45.6% and 46.7% of funding respectively, with federal sources providing just 7.7%. This funding structure creates massive disparities between high-tax states and low-spending jurisdictions like Idaho and Utah.

The Efficiency Question

Research from the Public Policy Institute of California demonstrates that increased spending does correlate with improved test scores, graduation rates, and future earnings. However, critics point to the glaring inefficiency in states approaching $40,000 per pupil. New York spends 9-170% more than neighboring states yet produces middling NAEP rankings, raising fundamental questions about administrative bloat and misplaced priorities. The United States dedicates 4.96% of GDP to education, below the developed nation average of 5.59%, yet achieves higher per-student spending than OECD averages of $10,700 for primary and $11,900 for secondary education. This suggests the issue isn’t total national commitment but rather how individual states allocate resources.

Taxpayer Frustration Mounts

Parents and taxpayers increasingly question why exponential spending increases fail to deliver proportional academic gains. While some districts genuinely approach the $40,000 threshold, the national reality shows most states operate between $15,000-$18,000 per pupil with comparable or superior results to high-spending outliers. The Citizens Budget Commission characterizes New York’s situation as “highest costs, middling marks,” a verdict that resonates with families struggling under heavy tax burdens while their children receive educations that don’t justify the expense. This represents a failure of accountability that transcends partisan politics, uniting frustrated citizens who demand their tax dollars produce measurable educational value rather than feeding an ever-expanding administrative apparatus.

Sources:

Public School Expenditures – National Center for Education Statistics

Highest Costs, Middling Marks – Citizens Budget Commission

Per Pupil Spending by State – World Population Review

Understanding the Effects of School Funding – Public Policy Institute of California