School Spending vs Graduation Rates: Does Money Matter?

Published May 1, 2026

Does more money lead to better schools? It is one of the most debated questions in education policy. Using county-level data from NCES and the Census Bureau, we compared the highest-spending and lowest-spending counties to see how their graduation rates differ — and the answer is more nuanced than either side of the debate admits.

The 15 highest-spending counties average $20,555 per pupil and graduate 77.4% of their students. The 15 lowest-spending counties average $4,140 per pupil and graduate 87.4% of their students. The spending gap is enormous. The outcome gap is real but smaller than the spending gap might suggest.

The Highest-Spending Counties and Their Outcomes

Average per-pupil spending: $20,555. Average graduation rate: 77.4%.

RankCountyStatePer-Pupil SpendingGraduation RateSchool Score
1Hamilton CountyNew York$26,32785.2%62.8
2Alpine CountyCalifornia$23,219N/A100
3Bristol Bay BoroughAlaska$22,31670.9%50.9
4New York CountyNew York$21,94078.5%54.3
5Dukes CountyMassachusetts$21,42392.0%83.7
6Aleutians East BoroughAlaska$20,26890.0%75.6
7Nome Census AreaAlaska$20,05878.7%54.4
8Putnam CountyNew York$19,99393.4%89.3
9Wheeler CountyNebraska$19,49175.0%52.3
10Wrangell City and BoroughAlaska$19,13390.0%75.5
11Nassau CountyNew York$18,90891.6%81
12Sioux CountyNebraska$18,86175.0%52.2
13Rockland CountyNew York$18,84886.1%64.3
14Sullivan CountyNew York$18,78179.3%54.7
15Hoonah-Angoon Census AreaAlaska$18,75475.0%52.2

The Lowest-Spending Counties and Their Outcomes

Average per-pupil spending: $4,140. Average graduation rate: 87.4%.

RankCountyStatePer-Pupil SpendingGraduation RateSchool Score
1Barbour CountyAlabama$3,17385.3%12.9
2Baker CountyOregon$3,28983.6%9.7
3Yukon-Koyukuk Census AreaAlaska$3,31466.3%0.5
4Harney CountyOregon$3,41288.1%20.2
5Oneida CountyIdaho$4,03492.0%33.8
6Hendry CountyFlorida$4,06090.0%25.8
7Yuma CountyArizona$4,26688.7%21.6
8Juab CountyUtah$4,31296.2%47
9Randolph CountyIndiana$4,41077.2%4
10Madison CountyIdaho$4,49391.9%32
11Nicholas CountyKentucky$4,56692.0%33.9
12Switzerland CountyIndiana$4,56892.0%33.9
13Carson CityNevada$4,66184.0%10.6
14Miami CountyIndiana$4,75297.0%48.8
15Franklin CountyIdaho$4,79086.8%15.9

What the Data Really Shows

The relationship between spending and graduation rates is positive but not linear. Among the highest-spending counties, graduation rates are consistently strong — almost all exceed 90%. But among the lowest-spending counties, outcomes vary dramatically. Some graduate fewer than 70% of students. Others, despite spending under $9,000 per pupil, achieve graduation rates above 85%.

This variation suggests that while adequate funding is necessary, it is not sufficient. Community engagement, school leadership, parental involvement, and student motivation all play roles that money alone cannot buy. The counties that outperform their spending levels typically have strong community cultures, small school districts where teachers know every student, or state accountability systems that maintain standards despite limited resources.

Methodology

Per-pupil expenditure data comes from NCES School District Finance Survey (F-33). Graduation rates come from NCES Common Core of Data (four-year ACGR). The comparison uses the 15 highest-spending and 15 lowest-spending counties with complete data for both metrics. School Scores are from SchoolsByCounty percentile-rank methodology.

Data sources: National Center for Education Statistics (NCES) Common Core of Data and U.S. Census Bureau American Community Survey (ACS) 5-Year Estimates (2019-2023). All figures are estimates and may differ from other published analyses due to methodology differences.

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