The Numbers Behind
Back To School Spending
Presented by Allovue
With all the hype around back-to-school spending,
Allovue investigated how schools in our partner districts
allocated and spent their resources in the weeks leading
up to the first day of school.
The majority of school budgets
(90%) are spent on...
Staff Compensation
(salaries and benefits)
Buildings
Other Fixed Costs
Source: NCES, 2016
Principals and program managers also receive money to address their
school’s unique needs throughout the year. This discretionary money
is typically spent on supplies, additional staff support, and classroom
materials. It is the focus of our research below.
How is money allocated to schools?
Option 1:
Allocate dollars that only have a direct
impact on students to a school. All other
administrative and shared expenses are
managed by the district’s central office.
Option 2:
Allocate as many dollars as possible
directly to the school.
Allocation levels are influenced by a variety of factors:
The size of
the district
The resources
shared across schools
The complexity of
the financial system
The vision of
district leadership
What do we know about school
spending patterns?
The typical Allovue district partner
starts its fiscal year on July 1st, and
starts school in early August.
Beginning of Year
Mid Year
End of Year
On average, Allovue district
partners spent or committed 14%
of their discretionary dollars by
Labor Day.
What do districts spend money on?
On average, the largest expense in a school's discretionary budget can be
human capital. Through our research with our district partners, additional
classroom support, in the form of staff compensation, makes up about
one-third of discretionary school spending.
People 32%
Tech 24%
Instructional Materials 24%
Events 8%
Facilities & Utilities 5%
Professional Services 4%
Special Programs & Fees 3%
What are the trends behind back
to school spending?
1/2
Nearly
of discretionary
funds are spent on classroom
supplies and technology.
1/3 of discretionary spending
is spent or committed for staff
compensation before Labor Day.
86% of discretionary funds
must be spent from September
until June.
We plan to keep a close eye on spending
patterns throughout the school year to
find answers to these lingering questions.
Source: District Balance sites
Data through August 31, 2016
Expense categories based on tagging of each district’s transactions