School Capital Expenditure Rules and Distribution

In this study, the authors provide descriptive evidence on the level and within-state distribution of school capital expenditures over the past two decades. They relate these to the fiscal institutions governing capital funding across states. Within-state differences in capital expenditures between the highest- and lowest-income school districts fell considerably following the Great Recession. Spending declined in the highest-income districts, while state support for low-income districts remained stable. Suggestive evidence points to the importance of constraints on districts’ ability to raise local funding and the structure of state support in explaining these differences and trends over time.