School District Expenditures: What is – and isn’t - Included in the Category “Dollars Spent in the Classroom”?

Nationally Accepted Definition: The National Center for Education Statistics (NCES) defines those expenditures that should be classified as spent “in the classroom” as those incurred for day-to-day operation of schools. They include all expenditures except those associated with repaying debt, capital outlays (for example, purchases of land, buildings, and equipment), and programs outside the scope of preschool to grade 12 (for example, adult education and community services.)
Source: Auditor General staff analysis of the National Center for Education Statistics’ National Public Education Financial Survey Instruction Booklet.

Dollars defined as “spent in the classroom” provide for:

Classroom Personnel
Teachers, teachers’ aides, substitute teachers, etc.
General Instructional Supplies
Paper, pencils, crayons and like items
Tuition
Paid to out-of-state districts and private institutions
Instructional Aids
Textbooks, workbooks, films, software and kits
Activities
Field trips (excluding transportation, hotel and food costs), athletics and co-curricular activities (choir, band, etc.)

It’s not “all administration” There’s more to the story.

Dollars not included in the definition of “in the classroom” provide for:

Administration
Superintendents, principals, business managers and staff working in accounting, payroll, purchasing, warehousing and printing
Student Support Services
Counselors, audiologists, psychologists, speech pathologists and nurses
Instructional Support Services
Librarians, teacher training and curriculum development — (All direct support to schools and students, although not “in the classroom”)

PLUS

Plant Operation and Maintenance
Salaries, benefits, other costs for heating/cooling, equipment repair, grounds keeping and security
Food Service
Salaries, benefits and other costs for preparing and serving meals and snacks
Transportation
Salaries, benefits and other costs for transporting students to and from school and school activities

Comparison of Arizona to National Averages

By Functional Areas

Functional Area	Arizona 2002	NCES Data 1999
Classroom Dollars	58.2%	61.6%
Plant Operation and Maint.	11.8	9.7
Administration	10.2	10.9
Student Support Services	6.5	5.0
Instructional Staff Support	4.3	4.4
Food Service	4.9	4.1
Transportation	3.9	4.0
Other Non-instruc. Services	0.2	0.3

Total	100.0%	100.0%

Source: Auditor General Staff analysis of 2002 School District Annual Financial Reports provided by the Arizona Department of Education, summary accounting data provided by individual school districts and NCES data from the Digest of Education Statistics 2001.

*Information on this document is drawn from an overview provided by Chuck Essigs, AASBO, at the March Executive Committee meeting.

Policy Briefs

School District Expenditures: What is – and isn’t - Included in the Category “Dollars Spent in the Classroom”?

It’s not “all administration” There’s more to the story.

PLUS

Comparison of Arizona to National Averages