My article (Ryu, 2025) investigates the consequences of repealing adequacy-based education funding, a less-explored area compared to the effects of implementing such reforms. Historically, the "adequacy of education era," exemplified by initiatives like Kentucky Education Reform Act (KERA) of 1990, saw states striving to equalize fiscal resources and student outcomes through state aid, with prior research generally confirming these programs' positive impact on student performance, especially in poorer districts.

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This study focuses on Ohio's PAthway to Student Success (PASS) program, enacted in 2010 as a response to court rulings on unconstitutional school funding. PASS was an evidence-based model designed to both improve student learning and promote fiscal equity, directing more state aid to districts with greater socio-economic challenges. The program's repeal at the end of one fiscal year, with transitional funding phased out subsequently, created a unique research opportunity.

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The research analyzed extensive data from Ohio school districts, using the Performance Index Score as the key outcome for student achievement. "Poorer school districts" were identified by their lower per-pupil property valuation. Employing a Difference-in-Differences estimation, the study aimed to isolate the impact of the PASS repeal.

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Counter to expectations, the repeal of Ohio's PASS program was associated with a positive effect on student performance in these poorer districts. Performance Index Scores for the affected districts showed improvement in the years immediately following the policy change. While a subsequent decline was observed in a later year, robustness checks indicated this negative effect was not statistically significant. These unexpected results held consistent even after accounting for other potential influencing factors.

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The article attributes this surprising positive outcome to shifts in local spending patterns and the crucial role of local discretion. Despite its evidence-based design, PASS was state legislation with "strict categorizations of spending." Prior research suggests that rigidly earmarked funds may not always significantly improve student performance due to a lack of local flexibility.

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The repeal of PASS, by removing these state-imposed spending constraints, appears to have granted local districts greater autonomy. Despite facing funding reductions, these poorer school districts strategically reallocated resources. Instead of capital projects, a detailed analysis revealed an increased investment in direct student support services, such as counseling, psychological, and health services. This shift came at the expense of decreased spending in other areas like staff support and equipment.

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This re-prioritization towards student well-being is highlighted as a key explanatory factor. The study emphasizes the "more than money" concept, suggesting that the manner of fund allocation can be as impactful as the amount, particularly under financial pressure. It draws parallels to high-performing, high-poverty schools that prioritize students' social-emotional needs and targeted support, reinforcing the idea that tailored spending can significantly enhance educational outcomes.

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In conclusion, the study provides compelling evidence that the repeal of Ohio’s adequacy-based funding, PASS, unexpectedly benefited poorer school districts. This counter-intuitive outcome is primarily attributed to the increased local discretion, which allowed these districts to reallocate resources to crucial student support services, demonstrating the profound impact of prioritizing student well-being and flexible resource management on educational outcomes, despite the repeal of adequacy-based state funding.

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Bibliography

 

Ryu, J. E. (2025). More Than Money: Local Fiscal Choice and Student Achievement After Funding Reform. Public Finance and Management, 24(1–2), 20–37. https://doi.org/10.1177/15239721251330461