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Where Did the Money Go? How Bureaucracy Is Failing Taxpayers, Students, and Teachers

Where Did the Money Go? How Bureaucracy Is Failing Taxpayers, Students, and Teachers

For decades, the public school establishment has relied on a single talking point: we just need more funding. Every budget cycle comes with warnings of classroom cuts, stagnant pay, and under-resourced students unless taxpayers write larger checks.

A comprehensive new study by economist Dr. Ben Scafidi from Kennesaw State University—examining district and state spending from 2020 to 2026—reveals the reality: the money came, but it never made it to the front of the classroom. The data tells a clear story of misallocated priorities that shortchange taxpayers, abandon teachers, and fail the students the system was built to serve.

More Funding, Fewer Classrooms

Between 2020 and 2025, inflation-adjusted current operating expenditures rose by nearly $3.1 billion, representing an 11.9% increase per student in real resources—translating to roughly $29,080 more per 20-student classroom. Total per-pupil spending reached $16,646 in 2025.

Yet during this same period, student enrollment fell statewide by 2.7% (over 75,000 students). While districts received record resources per pupil, this windfall did not translate into a better deal for taxpayers or more investment in classrooms.

How the System Shortchanges Everyone Involved

  • Taxpayers Pay More for Less: Taxpayers funded an 11.9% real per-student spending surge while the system served fewer children. In comparison, private choice scholarships averaged $8,594 per pupil—roughly half the total cost of the traditional public system—delivering education at a fraction of the public burden.
  • Teachers Face Real Pay Cuts: Despite billions in state funding, the average teacher salary dropped by 4.8% after adjusting for inflation. In nominal terms, salaries rose to $57,900, but failed to keep pace with the cost of living. At the same time, the actual number of classroom teachers declined by 5.5%.
  • Students Lose Direct Instruction: Instead of directing resources to classroom educators, districts expanded back-office bureaucracy. While the number of classroom teachers dropped by 5.5%, administrative positions surged by 9.6%, and non-instructional support staff grew by 4.6%.

Bureaucratic Bloat Over Classroom Excellence

When school districts receive record funding alongside enrollment declines, they face a straightforward choice: raise teacher pay and reduce class sizes, or expand the administrative apparatus. The evidence confirms that district leadership chose administrative bloat. Money that could have been used to retain top-tier talent and directly support students was instead consumed by district headquarters.

Public education does not suffer from a funding deficit; it suffers from an allocation crisis. Until district bureaucracies are held accountable, taxpayers will keep footing escalating bills, teachers will continue losing purchasing power, and students will remain stuck in a system that prioritizes administration over education. This is why school choice is a better option.

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