Between 1989-90 and 2005-06, federal revenue for public elementary and secondary schools increased 139 percent in constant dollars, compared with increases of 57 percent for state revenue and 51 percent for local revenue. In 2005-06, federal revenues made up 9.1 percent of total public school revenues.

From 1989-90 through 2005-06, total elementary and secondary public school revenue increased 59 percent in constant dollars, from $348 billion to $554 billion (see table A-33-1). During this period, the total amount from each revenue source (federal, state, and local) increased, though not at the same rate. Federal and state revenues increased at a faster rate than all local revenues (both property tax revenue and other local revenue). Federal revenue, which is the smallest of the three revenue sources, increased 139 percent, compared with increases of 57 percent for state revenue and 51 percent for local revenue.

The percentage of total revenue for public elementary and secondary education from local sources declined, from 47 percent in 1989-90 to 44 percent in 2005-06, while the percentage of total revenue flowing to public schools from federal sources increased from 6 percent in 1989-90 to 9 percent in 2005-06. The percentage from state sources was the same in 1989-90 as in 2005-06 (47 percent).

There were significant variations across the states in the percentage of public school revenue coming from the federal government. In 2005-06, the percentage of revenue from federal sources was highest in Mississippi (21 percent) and Louisiana (18 percent) and lowest in New Jersey (4 percent) and Connecticut (5 percent). Revenue receipts from federal sources increased 43 percent in constant dollars from 2004-05 to 2005-06 in both Mississippi and Louisiana. Nationally, revenue receipts from federal sources increased 2 percent in constant dollars from 2004-05 to 2005-06. The percentages of revenue from federal sources were higher in 2005-06 than in 2004-05 for both Mississippi (21 vs. 16 percent) and Louisiana (18 vs. 14 percent) (see table A-33-2 and NCES 2009-020, table 172).

There were also significant differences among states in the percentage of revenues received from state and local sources in 2005-06. In 21 states, the majority of education revenues came from state governments. The percentage of revenue from state sources was highest in Hawaii (90 percent), a state that has only one school district. Of the states with more than one school district, the percentage of revenue from state sources was highest in Vermont (86 percent). In 16 states and the District of Columbia, the majority of revenues came from local sources. The percentage coming from local sources was highest in the District of Columbia (88 percent), which has a single school district and no state government. Among the states, the percentage of revenue from local sources was highest in Nevada (67 percent). The percentage of revenues from property taxes also differed by state, ranging from a high of 55 percent in Connecticut to almost 0 in Hawaii and Vermont. In 13 states, no single revenue source made up a majority of all education revenue.

Technical Notes

Revenues have been adjusted for the effects of inflation using the Consumer Price Index (CPI) and are in constant 2007-08 dollars. For more information about the CPI, see supplemental note 10. Other local government revenue includes revenue from such sources as local nonproperty taxes, investments, and revenue from student activities, textbook sales, transportation and tuition fees, and food services. For more information about revenues for public elementary and secondary schools, see supplemental note 10. For more information about the Common Core of Data (CCD), see supplemental note 3.