Report Reveals Decline in Urban Public School Enrollment Despite Increased Spending

Public school enrollment in the country’s largest cities is declining despite an increase in school spending during the same period, according to a report by the Manhattan Institute.
The report, published on Thursday, indicated that between 2013 and 2022, nationwide public school enrollment fell from 49.9 million to 48.8 million students, a 2% decrease, reaching one of the lowest points in decades. Senior Fellow Daniel DiSalvo and Economic Policy Analyst Reade Ben noted that despite this decline, school districts have not adjusted their budgets accordingly.
“Declining enrollment does not speak well to the level of confidence in large, urban-area public school systems,” Ben said in a statement to Fox News.
Several factors contribute to this enrollment decline, including the exacerbating effects of the COVID-19 pandemic. However, the report identifies a significant shift of students from public schools to private schools, charter schools, and homeschooling as the primary driver of this trend.
“Many parents have opted to send their children to private or charter schools,” Ben explained. “As spending decreases and confidence declines, an important question must be asked: will throwing more money at a problem make it go away?”
The report highlights that states such as New York, Illinois, and California are experiencing the largest declines in enrollment. Conversely, Texas and Arizona have seen the largest increases, with Texas projected to surpass California soon as the state with the most public school students.
In 2020, public schools spent an average of $16,280 per student, a figure 13% higher than in 2010. Over the past 60 years, the student-teacher ratio in public school classrooms has also decreased, from an average of 26-to-1 in 1961 to 16-to-1 in 2020. DiSalvo and Ben question whether the benefits of lower student-teacher ratios justify the increased costs, urging schools to align funding decisions with enrollment trends.
“Politically, it is typically easier to defend the status quo than to enact changes that cost money—and easier to fight cuts than to increase spending,” the report said. “This will put policymakers in a bind, insofar as they will have to make the case that cuts are required—unless they opt to increase taxes or find other ways to pay for schools with more teachers and staff but fewer students.”