Approximately 37 percent of the North Carolina state budget is devoted to K-12 public education. This year North Carolina will spend approximately $7.1 billion on public elementary and secondary schools, the single biggest expenditure in the state budget. While North Carolina taxpayers have certainly demonstrated strong support for education, citizens also have a right to expect our children are learning the skills they need to earn a living and to contribute to society. One fundamental question that emerges out of this discussion is; how much does it cost to educate one high school graduate?
This report answers that question. It found the costs to educate a high school graduate vary depending on where you live. Costs range from a high of $265,395 (Tyrrell County Schools) to a low of $100,736 (Randolph County). On average, it cost North Carolinians $142,027 to educate one student through high school.
Methodology
To find the cost to produce one high school graduate, this study gathered data on annual average per student local, state and federal expenditures for the years 1996-97 through 2008-09.1 The per student cost figures used in this study reflect normal operating expenses only. Figures do not include the costs of federal school lunch programs, capital expenses, debt service, equipment purchases, transportation costs or the costs of community service programs. Adding in these costs can typically increase per pupil spending by nearly 25 percent2 Thirteen years of data were chosen to reflect K-12 education costs3. Totals for each LEA were compiled and then adjusted for inflation.4 Annual expenditure totals were then divided by the 2008-09 graduation rate to reflect the costs associated with students who are in school but fail to graduate. According to Department of Public Instruction data, 71.8 percent of ninth grade students who enrolled as freshman in 2005-06, graduated four years later in 2008-09.5
Results
Table I lists LEAs by range of spending on high school graduates for 115 LEAs in North Carolina. According to the data, 48 out of 115 LEAs or 42 percent of all LEAs spend between $125,000 – $150,000 to educate a high school graduate. Two other categories ($100K-$125K and $150K-$175K) each garnered about 25 percent of LEAs. Two LEAs spent over $200,000 per high school diploma.
Table II provides a list of high school diploma costs by local education agency. Costs are in 2008 dollars. Analysis shows the five LEAs that spent the most per high school graduate include: Tyrell County Schools, ($265,395); Hyde County Schools ($220,442); Halifax County ($197,297); Jones County Schools ($192,664) and Asheville City Schools ($185,356).
Conversely, the five districts that spent the least to educate a high school graduate include: Randolph County Schools ($100,736), Catawba County Schools ($104,343), Union County Public Schools, ($106,091), Iredell-Statesville Schools ($107,899) and Alexander County Schools ($108,661). According to the data, the state average for educating a high school graduate is $144,550.
| Cost Per High School Graduate: Five Most Expensive and Five Least Expensive LEAs in North Carolina |
|
| LEA | Cost Per H.S. Graduate |
| Tyrell County Schools | $265,395 |
| Hyde County Schools | $220,442 |
| Halifax County Schools | $197,297 |
| Jones County Schools | $192,664 |
| Asheville City Schools | $185,356 |
| State Average | $142,027 |
| Alexander County Schools | $108,661 |
| Iredell-Statesville Schools | $107.899 |
| Union County Public Schools | $106,091 |
| Catawba County Schools | $104,343 |
| Randolph County Schools | $100,736 |
Conclusion:
Three main points emerge from an analysis of the costs associated with educating one high school graduate. First, communities vary widely in the amount they spend. Even though state government provides about 65 percent of LEA revenue (local and federal support comprise about 25 percent and 10 percent respectively), some communities can educate two graduates for the same amount it takes some communities to educate one.
While this study did not analyze academic data, it is worth noting, a review of basic academic achievement data show that increased spending by LEAs does not significantly boost student achievement. Why that is the case is outside the bounds of this study, but it is certainly worth mentioning.
Second, the data also show dropouts are a significant cost to local public schools. Statewide, three in ten North Carolina freshmen failed to graduate four years later. Of the 30 highest spending LEAs, only 5 have a 4-year co-hort graduation rate above the state average (71.8 percent).
On average, North Carolina taxpayers spend $142,027 to educate one high school graduate. Over thirteen years, that means taxpayers spend about $10,925 (2008 dollars) annually, on each student’s public school education. Such costs are comparable to the costs of attending private schools. According to the Fiscal Research Division of the General Assembly, the average private school tuition for 2008-09 was estimated to be $9,698.6
Providing quality public schools is one of government’s most important and costly responsibilities. The efficient and effective use of those resources should be the goal of taxpayers and government alike.
If communities and schools can provide a quality education at less cost, don’t society and students stand to gain if parents are given the right to choose which education options are best for their children?
Research has shown that many charter schools have test scores and graduation rates that exceed those of traditional public schools. On average, the cost to educate a child in a charter school is less than educating a child in a traditional public school. Yet, legislative leaders have refused to lift the state-imposed cap on charter schools. Educational tax credits for low income parents or for businesses that choose to contribute to scholarship programs can also be an effective vehicle for addressing the current problems.
The disparity in the costs to educate one high school graduate raises legitimate concerns about the use of public dollars. Expanding educational opportunities for students offers a way to not only enhance a student’s chances to graduate but also to provide significant savings to the taxpayer. Those that refuse to consider expanding these options are no friend of education reform or the taxpayer.
| Table I: Cost of High School Diploma in North Carolina | ||||
| $100K-$125K | $125-$150K | $150K-$175K | $175K-$200K | $200K-$225K |
| 48/115 (42 Percent) | ||||
| Edenton/Chowan Schools. | ||||
| Rutherford Cty Schools | ||||
| Avery County Schools | ||||
| Lenoir Cty. Public Schools | ||||
| Pamilio County Schools. | ||||
| Chapel-Hill Carboro Schools | ||||
| Martin County Schools | ||||
| Robeson Cty Schools. | ||||
| Mitchell Cty. Schools. | ||||
| Forsyth County Schools | ||||
| Nash-Rocky Mount Schools | ||||
| Rockingham Cty. Schools. | ||||
| Pasquotank Cty. Schools | ||||
| Haywood Cty. Schools | ||||
| Columbus Cty. Schools | ||||
| Orange County Schools | ||||
| Brunswick County Schools | ||||
| Watauga Cty. Schools. | 29/115(25 Percent) | |||
| 28/15 (24 Percent) | Sampson Cty.Schools | |||
| Rowan-Salisbury Schools. | Yancey County Schools | |||
| Johnston County Schools | Richmond Cty. Schools. | Bladen County Schools | ||
| Elkin City Schools | Ashe Cty.Schools | Graham County Schools | ||
| Davie County Schools | Newton/Conover Cty Schls. | Greene County Schools | ||
| Gaston Cty. Schools | Cleveland Cty. Schools. | Edgecumbe Cty. Schools | ||
| Stanly City Schools | Cherokee Cty. Schools. | Weldon City Schools | ||
| Wake County Schools | Moore County Schools | Scotland County Schools | ||
| Franklin County Schools | Person County Schools. | Madison County Schools | ||
| Alamance-Burl.Schls. | Whiteville City Schools | Thomasville City. Schools | ||
| Cumberland County Schools | Kannapolis City Schools | Beaufort Cty. Schools | ||
| Craven County Schools | Polk County Schools | Swain Cty Schools | ||
| Caldwell Cty. Schools | Wilkes County Schools | Anson County Schools | ||
| Harnett Cty. Schools | Lee County Schools | Pitt County Schools | ||
| Surry County. Schools. | Pender County Schools | Wilson Cty Schools | ||
| Macon Cty. Schools | Chatham Cty. Schools | Camden County Schools. | ||
| Henderson Cty. Schools | Currituck Cty. Schools. | Warren Cty. Schools | ||
| Burke Cty. Schools. | Clay County Schools. | Vance Cty. Schools | ||
| Yadkin County Schools | Mount Airy City Schools | Allegheny Cty. Schools | ||
| Davidson Cty. Schools | McDowell County Schools | Jackson Cty Schools. | ||
| Cabarrus Cty. Schools | Carteret County Schools | N. Hanover Cty. Schools | 8/115 (7 Percent) | |
| Stokes Cty. Schools | Clinton City Schools | Granville Cty. Schools | ||
| Mooresville Cty. Schools | Guilford Cty. Schools. | Lexington City Schools. | Halifax Cty. Schools | |
| Lincon County Schools | Hickory City Schools | Northampton Cty Schools. | Jones County Schools. | |
| Onslow County Schools | Buncombe Cty. Schools | Gates County. Schools | Asheville City Schools | |
| Alexander County Schools. | Asheboro City Schools | Charltte.-Meck. Schools | Durham Public Schools. | |
| Iredell-Statesville Schools. | Duplin County Schools | Hoke County Schools | Perquimans Cty. Schools | 2/115 (2 Percent) |
| Union County Public Schools | Transylvania County Schools | Caswell Cty. Schools | Bertie Cty.Schools. | |
| Catawba Cty. Schools | Wayne County Schools | Roanoke Rapids City Schools | Washington Cty Schools | Tyrell County Schools |
| Randolph Cty. Schools | Dare County Schools | Montgomery Cty. Schools | Hertford Cty. Schools. | Hyde County Schools |
| LEA | Adj. Spending/Stud. | Graduation Rate | Cost of Diploma |
| Alamance-Burlington Schools | $86,802 | 70.6 | $122,949 |
| Alexander County Schools | $84,213 | 77.5 | $108,661 |
| Alleghany County Schools | $121,888 | 78.1 | $156,066 |
| Anson County Schools | $101,819 | 63.4 | $160,597 |
| Ashe County Schools | $104,638 | 77.3 | $135,366 |
| Avery County Schools | $118,354 | 81 | $146,116 |
| Beaufort County Schools | $100,659 | 62.2 | $161,831 |
| Bertie County Schools | $110,959 | 62.4 | $177,818 |
| Bladen County Schools | $102,451 | 59.2 | $173,059 |
| Brunswick County Schools | $102,789 | 74.8 | $137,418 |
| Buncombe County Schools | $94,198 | 74 | $127,294 |
| Asheville City Schools | $136,793 | 73.8 | $185,356 |
| Burke County Schools | $88,330 | 75.8 | $116,530 |
| Cabarrus County Schools | $85,257 | 74.7 | $114,132 |
| Kannapolis City Schools | $92,758 | 69.6 | $133,272 |
| Caldwell County Schools | $88,198 | 72.5 | $121,652 |
| Camden County Schools | $104,921 | 81.4 | $158,327 |
| Carteret County Public Schools | $106,041 | 82.5 | $128,534 |
| Caswell County Schools | $100,411 | 66.3 | $151,449 |
| Catawba County Schools | $87,440 | 83.8 | $104,343 |
| Hickory City Schools | $94,832 | 74.3 | $127,633 |
| Newton Conover City Schools | $103,173 | 76.3 | $135,220 |
| Chatham County Schools | $103,175 | 78.9 | $130,766 |
| Cherokee County Schools | $103,723 | 77.2 | $134,356 |
| Edenton/Chowan Schools | $104,660 | 70.6 | $148,243 |
| Clay County Schools | $113,465 | 87.6 | $130,219 |
| Cleveland County Schools | $89,059 | 66 | $134,937 |
| Columbus County Schools | $96,064 | 69.7 | $137,824 |
| Whiteville City Schools | $97,289 | 72.9 | $133,455 |
| Craven County Schools | $92,792 | 75.7 | $122,578 |
| Cumberland County Schools | $89,817 | 73.2 | $122,700 |
| Currituck County Schools | $106,944 | 82.1 | $130,260 |
| Dare County Schools | $113,169 | 90.2 | $125,464 |
| Davidson County Schools | $81,599 | 71.2 | $114,605 |
| Lexington City Schools | $108,215 | 70.1 | $154,372 |
| Thomasville City Schools | $107,419 | 65.3 | $164,500 |
| Davie County Schools | $89,191 | 71.6 | $124,568 |
| Duplin County Schools | $90,788 | 71.9 | $126,269 |
| Durham Public Schools | $115,608 | 64 | $180,637 |
| Edgecombe County Public School | $99,156 | 58.2 | $170,371 |
| Forsyth County Schools | $102,411 | 72.7 | $140,867 |
| Franklin County Schools | $91,256 | 74.2 | $122,986 |
| Gaston County Schools | $87,040 | 70 | $124,342 |
| Gates County Schools | $112,487 | 73 | $154,091 |
| Graham County Schools | $121,828 | 70.5 | $172,805 |
| Granville County Schools | $90,288 | 58.4 | $154,602 |
| Greene County Schools | $106,085 | 62.1 | $170,829 |
| Guilford County Schools | $101,701 | 79.9 | $127,853 |
| Halifax County Schools | $108,119 | 54.8 | $197,297 |
| Roanoke Rapids City Schools | $100,885 | 66.8 | $151,025 |
| Weldon City Schools | $128,729 | 75.6 | $170,276 |
| Harnett County Schools | $84,922 | 71.2 | $119,272 |
| Haywood County Schools | $99,379 | 71.9 | $138,218 |
| Henderson County Schools | $93,314 | 79.3 | $117,672 |
| Hertford County Schools | $105,559 | 60.1 | $175,638 |
| Hoke County Schools | $95,101 | 62.2 | $152,895 |
| Hyde County Schools | $178,999 | 81.2 | $220,442 |
| Iredell-Statesville Schools | $87,291 | 80.9 | $107,899 |
| Mooresville City Schools | $88,106 | 79.6 | $110,685 |
| Jackson County Schools | $103,633 | 66.5 | $155,839 |
| Johnston County Schools | $90,885 | 72.9 | $124,670 |
| Jones County Schools | $127,351 | 66.1 | $192,664 |
| Lee County Schools | $93,078 | 70.7 | $131,652 |
| Lenoir County Public Schools | $95,461 | 65.6 | $145,519 |
| Lincoln County Schools | $85,097 | 77.8 | $109,379 |
| Macon County Schools | $90,729 | 77 | $117,829 |
| Madison County Schools | $105,733 | 64 | $165,207 |
| Martin County Schools | $105,784 | 74.3 | $142,374 |
| McDowell County Schools | $93,467 | 72.3 | $129,276 |
| Charlotte-Mecklenburg Schools | $101,598 | 66.1 | $153,703 |
| Mitchell County Schools | $100,177 | 70.7 | $141,693 |
| Montgomery County Schools | $100,890 | 67.1 | $150,357 |
| Moore County Schools | $96,028 | 71.5 | $134,304 |
| Nash-Rocky Mount Schools | $94,573 | 67.2 | $140,733 |
| New Hanover County Schools | $101,816 | 65.5 | $155,444 |
| Northampton County Schools | $110,495 | 71.6 | $154,322 |
| Onslow County Schools | $86,976 | 79.6 | $109,266 |
| Orange County Schools | $112,032 | 81.4 | $137,631 |
| Chapel Hill-Carrboro Schools | $125,801 | 88.3 | $142,469 |
| Pamlico County Schools | $116,771 | 81.4 | $143,453 |
| Pasquotank County Schools | $95,878 | 69.3 | $138,352 |
| Pender County Schools | $90,849 | 69.3 | $131,095 |
| Perquimans County Schools | $114,925 | 64.4 | $178,454 |
| Person County Schools | $90,003 | 67.2 | $133,933 |
| Pitt County Schools | $92,066 | 57.4 | $160,393 |
| Polk County Schools | $108,851 | 82.1 | $132,583 |
| Randolph County Schools | $79,985 | 79.4 | $100,736 |
| Asheboro City Schools | $95,971 | 75.9 | $126,444 |
| Richmond County Schools | $91,515 | 67.5 | $135,577 |
| Robeson County Schools | $89,274 | 63 | $141,704 |
| Rockingham County Schools | $94,179 | 68 | $138,498 |
| Rowan-Salisbury Schools | $90,136 | 66.3 | $135,951 |
| Rutherford County Schools | $93,956 | 64 | $146,806 |
| Sampson County Schools | $89,634 | 65.8 | $136,221 |
| Clinton City Schools | $98,775 | 77.1 | $128,112 |
| Scotland County Schools | $108,538 | 64.9 | $167,238 |
| Stanly County Schools | $89,810 | 72.9 | $123,196 |
| Stokes County Schools | $90,656 | 80.7 | $112,708 |
| Surry County Schools | $92,406 | 77.7 | $118,926 |
| Elkin City Schools | $109,957 | 88.2 | $124,667 |
| Mount Airy City Schools | $106,109 | 81.8 | $129,717 |
| Swain County Schools | $114,992 | 71.1 | $161,732 |
| Transylvania County Schools | $96,522 | 76.7 | $125,843 |
| Tyrrell County Schools | $153,664 | 57.9 | $265,395 |
| Union County Public Schools | $85,616 | 80.7 | $106,091 |
| Vance County Schools | $96,959 | 61.9 | $156,638 |
| Wake County Schools | $96,437 | 78.4 | $123,006 |
| Warren County Schools | $106,780 | 68 | $157,029 |
| Washington County Schools | $120,233 | 68.4 | $175,779 |
| Watauga County Schools | $102,085 | 74.7 | $136,695 |
| Wayne County Public Schools | $90,528 | 72 | $125,733 |
| Wilkes County Schools | $93,834 | 70.9 | $132,346 |
| Wilson County Schools | $93,263 | 58.2 | $160,245 |
| Yadkin County Schools | $89,283 | 77.8 | $114,759 |
| Yancey County Schools | $105,025 | 60.6 | $173,308 |
| North Carolina Average | $100,869 | 71.8 | $142,027 |
1 Data for this study were provided by the Education Statistics Access System housed on the North Carolina Department of Public Instruction web site. Data are accessible at: http://beyond2020.dpi.state.nc.us/wds80_1/ReportFolders/reportFolders.aspx?sCS_referer=&sCS_ChosenLang=en
2 See: They Spend What? The Real Cost of the Public Schools, by Adam Shaeffer, Cato Institute, Policy Analysis Series, No. 662, March 10, 2010.
3 Data collected is per pupil expenditures, exclusive of child nutrition costs. Data does not include charter schools.
4 Inflation-adjusted dollars are derived using the inflation calculator on the Bureau of Labor Statistics web site: http://data.bls.gov/cgi-bin/cpicalc.pl
5 See NC DPI Co-hort graduation data: http://accrpt.ncpublicschools.org/docs/
6 See Legislative Fiscal note for House Bill 335, 2009 General Session. Materials accessible at: http://www.ncga.state.nc.us/Sessions/2009/FiscalNotes/House/PDF/HFN0335v1.pdf
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