differences autonomy included “efficiency” outcomes better generate

I. Introduction
Although the public may not be aware of it, there are extensive variations in per-pupil funding among
public schools in the Milwaukee school system. For example, students in traditional MPS schools
receive significantly more funding than students in charter schools. There are even differences in
funding among charter schools. So-called “instrumentality charters” receive the same funding as
MPS schools, while independent and non-instrumentality (Ind) charters receive less. This raises the
question that is the focus of this research: which public schools produce the best outcomes per taxpayer
dollars spent?
This is not an idle question. Wisconsin ranks in the top half of states in terms of education spending
and MPS ranks 11th among all big cities in the country for per pupil funding. 4 However evidence in
prior WILL research suggests that traditional public schools in Wisconsin are receiving “diminishing
returns,” where additional dollars spent are not producing proportional benefits.
Because our goal is to educate children and not simply spend public dollars, spending smart is more
important than, or at least a precondition to, spending more. Are there more effective spending models
out there?
In addressing this question, it is important to highlight that the question of return-on-investment is
somewhat different than the question of school performance. Schools that score lower on standardized
tests may actually have a higher return-on-investment if they do so with less funding. 5
A. Existing Evidence on Charter School Efficiency
This paper is part of a larger narrative on the efficiency of public school spending around the world.
Several studies have endeavored to measure the outcomes achieved by students per resource expended.
Most of these studies show the United States to be in the bottom half of countries in terms
of efficiency. For instance, Dalton, Marcenaro-Gutierrez and Still find that the United States ranks
21st out of 30 industrialized countries in efficiency. According to these scholars, the United States
spends too much on it’s teachers for the results achieved. In other words, other countries spend less
and have larger class sizes, yet achieve similar or better outcomes.
Similarly, Leuken, Esenberg and Szafir (2015) in a report for WILL compared expenditures on education
in Wisconsin to OECD countries, and found that the state’s achievement is lower than would be
predicted for the amount of money spent.
While there are a number of studies comparing public schools in the aggregate, much less research
has focused on whether efficiency differences exist between types of public schools. We are aware
of only three existing studies that examine charter school efficiency. Grosskopf, Hayes, and Taylor
(2009) 6 examined school efficiency in Texas. They found that 74 percent of Texas charter schools are
operating at a high level of efficiency compared to only 9 percent of regular public schools. Similarly,
Gronberg, Jansen, and Taylor (2012) 7 found that Texas charter schools are able to produce better
outcomes on state-standardized tests at a lower cost, and that they are more efficient than traditional
public schools of comparable size. 8 Most relevant to our work is research by University of Arkansas
professor Patrick Wolf and colleagues, who conducted a comprehensive investigation of charter
school efficiency nationwide in 2014. 9 In this report, Wolf et. al. determined the ratio of taxpayer expenditure
to points scored on the National Assessment of Education Progress (NAEP). After adjusting
Bang for the Buck
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