Education Finance

Ensuring every student has the opportunity to succeed starts with how we fund education. But for many policymakers and education leaders, deciding how to allocate limited resources can be challenging.

At AIR, we help turn data into action. With clear, evidence-based guidance, we support policymakers and education leaders in making financial decisions that lead to stronger policies, better programs, and improved outcomes for students.

As a nationally recognized leader in school finance, cost modeling, and economic evaluation, our team works closely with states, districts, and schools to translate research into effective policy and practice. We provide the tools and insights leaders need to:

Design and improve K–12 funding formulas that promote efficient use of resources and fair distribution among districts and schools;
Understand and plan for the true costs of special education;
Shape early childhood policies, including child care subsidies, using cost-based information;
Estimate the costs of achieving postsecondary education goals to inform state funding formulas and support institutions’ strategic planning and budgeting; and
Support districts and schools in making strategic, cost-effective investments to achieve their educational goals.

Together, we help education systems invest wisely—so all students have what they need to thrive.

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Our Areas of Expertise

AIR’s school finance work is grounded in rigorous, evidence-based methods that span the full spectrum of education funding challenges. We bring deep expertise and practical insights to help leaders make informed, strategic decisions about how to invest in students and systems.

K–12 Education Funding
Our experts analyze what it takes to ensure equal educational opportunities for all students and assess whether state school funding policies are fair, effective, and aligned with legal obligations. We also help states and districts navigate federal funding streams to maximize impact and ensure compliance with federal requirements.
Special Education
We help states understand how much is being spent on special education, analyze the key drivers of those costs, and assess whether resources are being used efficiently and distributed fairly. We also evaluate whether state funding formulas support students with disabilities effectively.
Early Childhood Education
We help states understand the true cost of delivering high-quality early care and education—especially for child care subsidies, preschool models, and services for young children with special needs. We calculate the costs of the entire system and develop models that allow states to explore varying scenarios.
Postsecondary Education
We help state policymakers and institutional leaders understand the cost of student success and provide strategic insights to align funding with educational priorities. Our cost analyses support the design and refinement of funding systems for public colleges and universities, and help institutional leaders make informed, strategic decisions about how to allocate resources.
Strategic Finance for Districts and Schools
We help district and school leaders allocate resources efficiently and effectively, providing guidance on how to align spending with programmatic priorities and strategic goals to maximize impact.
Educator Workforce
We help state and local education leaders address pressing staffing challenges by combining insights on educator workforce trends with financial analysis. Our work supports efforts to recruit and retain staff, plan for resource needs, and strengthen the educator pipeline.

Our school finance work encompasses investigations conducted on behalf of local school districts, state and federal agencies, and philanthropic organizations with an interest in improving policy and practice at all schooling levels from early childhood to postsecondary education.

Turning Data Into Smart Investments

AIR’s Center for Economic Evaluation helps decision-makers in education, health, and workforce development understand the cost of policies and programs—and what they deliver.

We partner with policymakers, organizations, and communities across the U.S. and around the world to provide clear, actionable insights grounded in rigorous analysis. Our experts estimate the true costs of programs and policies, identify opportunities for greater efficiency, and model how costs shift under different scenarios.

By raising the bar for economic evaluations, we equip leaders with the information they need to improve efficiency and make, evidence-based investment decisions.

Learn how the center helps shape stronger, more cost-effective systems.