Throw Me the Money

So when we talk about economists quarreling over the effects of money, what we really mean is a quarrel over the effects of money used to reduce class size. In fact, recent analyses of a large-scale class size experiment in the 1980s (the "Tennessee STAR" project) seem to have connected the dots between class size and achievement to most researchers' satisfaction. Few now doubt that there are modest benefits to smaller classes in the lower grades, especially for at-risk students. The open question is whether the costs are worth the gains. There also seems to be agreement that bigger returns to achievement may come from improving teacher quality. Unfortunately, there is massive disagreement on how to do that. Conservatives want to motivate better outcomes with performance incentives like merit pay. Skeptics worry that incentives will just make teachers and administrators prefer schools where performance gains are easier and more predictable—the "better" schools. How likely is it that the toughest schools most in need of improvement will be able to attract first-rate talent?

So, the bottom line: most seem to admit that money well spent on the right things is beneficial, but there's little consensus on what those right things are. Money matters more than research can reliably demonstrate, especially for essentials, as any kid using outdated textbooks in a crumbling building can attest. Nashville's is a school system where teachers commonly go begging for supplies, spending out of their own pocket to provide classroom basics. As Metro middle school history teacher Brett Kmiec told me: "Before we say you're throwing too much at it, you have to say there's enough in the first place."

But unless used wisely, money probably matters less than the tax-and-spend crowd would like to believe, if citywide test scores are to be the measure of "matters." Expecting a bump in funding to vastly improve aggregated outcomes in a system with 70,000 kids borders on fantasy. On the other hand, hoping for big gains in systemwide outcomes given unmet basic needs without additional funding is also a dream world.

I said you wouldn't be happy.