Business of Education
spending on education and training in the United States is estimated
at about $800 billion, making it the second largest sector of
the nationís economy next to healthcare. According to the U.S.
Department of Education, total elementary and secondary education
spending is projected to have constituted about $406 billion of
that total in the 2000-2001 school year, an increase of about
4 percent over the previous year. It is estimated that about $30
million (7 percent) of these resources are for private schools,
while the remaining $375 billion (93 percent) is for public schools.
Education technology spending has been fueled in recent years
by the nationís overall education investment, led by several years
of record-level federal increases but also by state and local
spending made possible by the strong economy. However, the scale
and scope of the state technology funding in the 2001-2002 and
2002-2003 school years will depend largely on the economic and
fiscal climate within each state.
The National Conference of State Legislatures reported in November,
2001 that revenue shortfalls and/or expenditures exceeding budgeted
amounts has caused at least 36 states to implement or consider
mid-year budget cuts or holdbacks to address fiscal problems in
FY2002. On the positive side, many such states have either exempted
or are considering exempting K-12 education either in whole or
from 2002 Education Market Report: K-12
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the publisher. © 2001.