Funding the Complexity Index in Indiana: Does money matter?

This study examined the association between instructional expenditures per pupil and student achievement while controlling for each variable in the Complexity Index in Indiana's school funding formula. The dependent variable, student achievement, was measured by the percent of students passing the ISTEP+ exam in grades three through ten for each school corporation. The independent variable, instructional expenditures per pupil, was measured by the instructional expenditures per average daily membership for each school corporation. Additional independent variables were included in the equation to control for student and school demographics. The Complexity Index in the Indiana funding formula defined those additional independent variables. Multiple regression analysis was used to determine the association between the variables. This study found no significant association between instructional expenditures per pupil and student achievement. However, there was an association between student achievement and two Complexity Index variables and the school corporation demographic classification.