State budgets temporarily crashed amid the COVID-19 pandemic and economic shutdown, placing education funding at risk. To demonstrate implications for school finance, we show that (1) school districts are racially segregated along class lines; (2) higher-poverty districts receive a greater share of funds from state, as opposed to local sources, making them especially vulnerable during economic downturns; and (3) many states made across-the-board K–12 budget reductions following the Great Recession, but those cuts disproportionately impacted high-poverty districts. A decade later, state legislators may face similar fiscal challenges. Instead of enacting across-the-board cuts, states can identify specific funding programs that already benefit lower-poverty districts or wealthier students. We demonstrate how this approach would work under different state finance models and offer recommendations for state policy makers.

Early colleges (ECs) provide high school students access to college coursework with the goal of increasing postsecondary opportunities for traditionally underrepresented students. We examine the impact of ECs on postsecondary attainment, calculate the resulting monetary benefits, and then estimate the per-student costs of ECs compared with traditional high schools to assess costs and benefits. Our findings indicate that students enrolling in ECs in our study are more likely to attend college and graduate with an associate's or bachelor's degree. Increased educational attainment from EC enrollment results in lifetime benefits of almost $58,000 per student. ECs cost approximately $950 more than traditional high schools per student per year, resulting in an overall cost of $3,800 more per student across four years of high school. Comparing benefits to cost, we estimate a net present value (NPV) of $54,000 per student and a benefit–cost ratio of 15.1. Even when using conservative estimates of costs (upper bound) and benefits (lower bound), we calculate an NPV of over $27,000 and a benefit–cost ratio of 4.6. These results indicate that investment in ECs pays off through increased earnings for EC students, increased tax revenue, and decreased government spending.