Public Schools Increased Spending to $23,000 Per Student, Ballooned Reserves While Enrollment Declined

Harrisburg, Pa., May 15, 2025 — Pennsylvania school districts increased overall revenue collected in 2023–24 to $23,000 per student, while expanding general fund reserves to $7.4 billion, according to new data released by the Pennsylvania Department of Education (PDE) last week.

Analysis from the Commonwealth Foundation, published today, shows that while public schools have continually seen enrollment decline, they continue to enjoy increased funding, leading almost every district to pad its reserves.

This new data comes on the heels of the latest published student achievement scores from the National Assessment of Educational Progress, which exposed the depth of Pennsylvania’s education crisis—69 percent of the state’s eighth graders cannot read or do math at grade level.

Key Findings

Public School Spending

Pennsylvania public school revenue has risen almost 5 percent in the last year, totaling $23,061 per student.
Overall revenue from all sources—federal, state, and local—reached $38.6 billion in 2023–24.
The data predates another massive increase in the 2024–25 state budget. State support of public schools reached an all-time high of $16.8 billion, an increase of 66 percent over the last decade.
Based on the latest national data, Pennsylvania ranks seventh in the nation in spending per student.

Public School Reserve Funds

School districts collectively hold $7.4 billion in reserve funds (as of 2023–24), up $557 million from the previous year.
Fifty-seven percent of districts have reserves exceeding 20 percent of their operating budget, which surpasses the “excessive” quota established by the previous auditor general.
View the breakdown of each school district’s reserve funds here.

Elizabeth Stelle, the vice president of policy for the Commonwealth Foundation, issued the following statement:

“The education crisis at hand is not a result of underfunding but a consequence of funding schools instead of students. Throwing more money at the problem has not and will not save our students from failing schools. Students are stuck in the school district assigned to their zip code, regardless of whether that district performs well.

“Today, thousands remain on waiting lists for tax-credit scholarships, hoping for a chance at a better education.

“Students do not need another inflated, status-quo budget. They need educational options that empower parents to choose the best school for their kids. Such options include Lifeline Scholarships, or the Pennsylvania Award for Student Success, which the Senate Education Committee recently approved with a bipartisan 8–3 vote.

“Governor Shapiro needs to step up and lead on his promise to provide educational opportunity for every child. Our students’ futures hang in the balance.”

Rachel Langan, the senior education policy analyst for the Commonwealth Foundation, added:

“Unsurprisingly, school districts continue to hold exorbitant reserve funds—despite simultaneously pushing for property tax increases.

“Taxpayers deserve better. Sitting on large, often excessive reserves while clamoring for more state funding is not good stewardship by public schools.

“This data also confirms that attacks against cyber charters for holding reserve funds remain unjustified, as public-school districts continue to egregiously stockpile reserve funds. Over the last decade, school district reserves grew by more than 80 percent while enrollment dropped by 9 percent.

“Unlike public schools, cyber charters maintain sizable reserves because they cannot raise taxes and must rely on reserves to adjust to enrollment demands. Reserve funds offer cyber charters the security and stability their revenue structure cannot.

“Lawmakers should not penalize cyber charters for their fiscal prudence, while district schools continue to stockpile funds, raise local taxes, and lobby for more state funding.”

Read Commonwealth Foundation’s latest analysis here.

Commonwealth Foundation experts are available for comment. Please contact Giana DePaul at gmd@commonwealthfoundation.org or (215) 859-0384 to schedule.

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