Relative Cost-Effectiveness of School Resources in Improving Achievement.

This study demonstrates a method for extending debates on the effectiveness of school inputs into the cost-effectiveness realm. This study uses the example of Florida's statewide initiative to reduce class sizes to determine which of many state inputs buys the most effect for the same expenditure. The method includes a three-stage process: multiple regression to determine the effects of various inputs, cost analysis to attribute costs to each of these effects, and a simulation to compare relative costs. The benefits of extending effectiveness models into the costeffectiveness realm are borne out by the results. Using data from 1,734 elementary schools in Florida, we found that class size and per-pupil expenditures in these schools are the least cost-effective means of raising test scores. The benefits of using cost-effectiveness to guide expenditure decisions are demonstrated in this article. Whereas much of the literature on the effects of class size centers on its effectiveness, it is difficult to sort through the results, not just because they are not completely in alignment but because relative effectiveness is difficult to discern using typical methods such as multiple regression. The impact of using this method can be seen best by examining the policy framework in which it will be applied. Florida's educational system is state funded. By adopting a statewide policy that restricts class sizes, the voters of Florida have implicitly agreed that they want better schools and believe that by reducing class sizes, they are making an effective investment toward that end. The research on class size reduction (CSR) tends to Lynn lion is an associate professor of international and intercultural education at Florida International University. Anthony H. Normore is an assistant professor of educational administration at Florida International University. 238 JOURNAL OF EDUCATION FINANCE | 31:3 WINTER 2OO6 238-254 This content downloaded from 207.46. 13.111 on Tue, 09 Aug 2016 04:30:12 UTC All use subject to http://about.jstor. org/terms School Resources and Achievement 239 substantiate this view, yet the consequences of such a policy probably were not fully understood. The entire state budget had to be reworked to accommodate the multiyear plan to integrate the substantial costs of adding more teachers. Furthermore, money that might have been earmarked for other areas of educational spending (e.g., early childhood or higher education) have been redirected. Teacher salaries probably will also suffer because funds will be directed to adding new teachers rather than raising teacher salaries. The overwhelming need to find funds and certify teachers has also led to an emphasis on charter schools and changes in certification requirements. Debates on this issue take place as much in public forums as they do in scholarly forums. This study was prompted by recent debates in a public forum in the context of a new law, Amendment 9 (Senate Bill 30A), in Florida. The study was designed to inform that very public debate in two scholarly ways: to analyze data for the State of Florida that include classroom size, providing analysis from actual state data rather than extending analyses from other locations; and to extend the analysis to include a measure of cost-effectiveness. For the various types of school resources that appear to affect student achievement, is a reduction in class size the best use of Florida's public money?