Does No Child Left Behind Place a Fiscal Burden on States? Evidence from Texas

Abstract

The federal No Child Left Behind Act of 2001 requires states to establish goals for all students and for groups of students characterized by race, ethnicity, poverty, disability and limited English proficiency. The law requires schools to make annual progress in meeting these goals. In a number of states, officials have argued that increased federal education funding is not sufficient to cover these imposed costs. This paper uses data from Texas to estimate the additional costs of meeting the new student performance standards and finds that these costs substantially exceed federal funding.