Pennies for Pupils: Shortfalls in Funding for Pennsylvania Public Education

Photo from Pennsylvania Capital-Star.

Pennsylvania is supposed to be the state of opportunity. Yet for thousands of students, opportunity is determined less by talent or effort and more by zip code. Funding for public education in Pennsylvania reveals stark disparities that disproportionately impact students in low-income communities. 

Despite being one of the wealthiest states, Pennsylvania ranks 45th in the nation for state contributions to public school funding. Pennsylvania relies heavily on local property taxes for school funding, creating vast disparities between wealthy and low-income communities. This system results in wealthier districts receiving up to $4,800 more per student annually than poorer districts. This structure does not simply create gaps; it systematically reproduces inequality across districts. 

In 2024, just 36% of school district revenues came from the state, compared to the national average of 47%. Pennsylvania’s wealthiest districts spend approximately 33% more per student than the poorest ones. As poorer school districts face significant constraints, wealthier districts enjoy better facilities, advanced courses, and more experienced teachers. A growing reliance on local revenue has deepened disparities, perpetuating cycles of inequality. Low-income and minority communities bear the brunt, with their schools often lacking critical resources, such as STEM programs, arts education, and adequate mental health support. These disparities are not abstract; they directly shape the opportunities available to students in the classroom and, in turn, their prospects for college and entry into the workforce. 

In February of 2023, the Pennsylvania Commonwealth Court ruled that Pennsylvania’s school funding system was unconstitutional, citing its failure to provide all students with an equitable education. The decision emphasized what the data showed: students in 77% of school districts face an “adequacy gap,” with spending levels far below what is needed to meet the state-defined educational standards. This ruling fundamentally shifted the conversation from one of policy preference to constitutional obligation. Yet, the question remained how Pennsylvania would move forward. The 2022 election made reform even trickier. With a newly elected governor –Democrat Josh Shapiro–– and a divided legislature, the debate between fair funding and school choice vouchers intensified. 

Efforts to reform the funding formula, such as the Fair Funding Formula adopted in 2016, have only partially addressed the problem. While it allocates state funding more equitably based on student needs, it applies only to new funding, not to existing allocations, which comprise the vast majority. As a result, disparities are entrenched and harm vulnerable students. Moreover, under Governor Shapiro, the state has made historic investments in education and continued to direct additional funding through adequacy-based formulas that prioritize the districts most in need. The governor’s approach reflects a clear and important shift toward equality, signaling a recognition at the highest levels of state government that the existing system is both inadequate and unjust.

Addressing this crisis, however, requires more than incremental reform; it requires an overall structural correction. Without applying equitable funding principles to all education dollars and significantly reducing reliance on local property taxes, disparities will continue to persist. A comprehensive reform plan must prioritize equitable resource distribution to address systemic funding inequities in our state’s public education. 

Proposed Solutions

1. Transition all state education funds through the Fair Funding Formula established in 2016, which considers student poverty, English language learners, and district needs. This would ensure equitable distribution of resources across all districts, rather than perpetuating historical funding inequalities that benefit wealthier areas. This shift would move Pennsylvania from a reactive system to a needs-based one. 

2. Allocate an additional $2 billion in the upcoming fiscal year as a down payment toward addressing the $6.2 billion estimated funding gap needed to meet constitutional obligations for “thorough and efficient” education. This phased approach allows districts to begin addressing immediate needs such as infrastructure repairs, teacher salaries, and student support services. Following this phasing will create the necessary step toward meeting constitutional standards. 

3. Develop state-level revenue mechanisms, such as progressive taxation, to supplement local property taxes and alleviate the disproportionate burden on low-income communities. This would reduce dependency on local taxes while ensuring steady funding for schools. Without this change, disparities rooted in local wealth will continue to persist. 

4. Invest in modernizing school facilities and expanding mental health services. Many schools operate with outdated facilities that hinder learning. Targeted mental health funding is essential for addressing students’ holistic needs and improving academic outcomes. Equity in education must extend beyond funding levels to the conditions in which students learn. 

Pennsylvania now stands at a critical inflection point. The Commonwealth Court ruling has created both urgency and opportunity to address these long-standing inequalities. For the first time in decades, the commonwealth is being forced to confront whether its education system truly serves all students. Our legislators must commit to supporting additional funding and professional development opportunities to underfunded districts to attract and retain qualified educators. State interest groups, community involvement, and crucially, parents should advocate for bipartisan coalitions to build support for equitable funding reforms. By addressing these challenges, Pennsylvania can create a more just education system that benefits all students, regardless of their zip code.

• • •

Elijah Dourado is a senior, studying International Relations and Political Science. He is also involved with Carnegie Mellon’s Alexander Hamilton Society, College Democrats, Elections Board Committee, and other organizations.

One response to “Pennies for Pupils: Shortfalls in Funding for Pennsylvania Public Education”

  1. This really hit home. What stood out most is how clearly it shows that school funding gaps aren’t random; they’re built into the system and hit low-income communities the hardest.

    It also pushes the conversation forward: if we know the system is inequitable, what does real accountability actually look like? Not small fixes but meaningful change at scale.

    At the end of the day, this isn’t just about budgets; it’s about fairness, opportunity, and what we’re willing to invest in the next generation. Curious how others think Pennsylvania should move forward from here.

Leave a Reply

See More

Discover more from Carnegie Mellon Policy and Law Review

Subscribe now to keep reading and get access to the full archive.

Continue reading