Public school per pupil costs and demands for better performance have increased over the past several decades. While the overall per pupil expenditures have increased, the percent of the educational dollar directed toward instructional activities has remained at approximately 60%. A grass-roots movement known as the "65% Solution" caught national attention by claiming that schools are not efficiently allocating resources into areas that have the greatest link to student achievement, such as instruction. Proponents of the 65% Solution claim that per pupil expenditures can be increased by shifting funds from areas considered non-instructional to areas that directly impact student instruction, such as teachers and instructional materials. The purpose of this study was to determine the relationship between district Panel Recommended and Commended Performance TAKS Reading/ELA and Math results and three measurements of instructional expenditures, Instructional Staff Percent; TEA Instructional Expenditure Ratio; and the NCES Instructional Expenditure Ratio (65% Solution), in Texas public schools. Data was collected from the 2003-2004 AEIS report. Multiple regression was used to conduct the analyses. In most instances, there was little, if any, relationship between TAKS Reading/ELA and TAKS Math, and the Instructional Staff Percent (ISP), TEA Instructional Expenditure Ratio (TIER), and NCES Instructional Expenditure Ratio (NIER). However, a low to moderate relationship was discovered in the comparison of TAKS Reading/ELA, and the ISP and TIER. This result was the same for both the Panel Recommended and Commended Performance. In every instance, the ISP and TIER showed positive, statistically significant, relationships to TAKS results. The NIER, or 65% Solution, had the lowest correlation and was statistically insignificant in three out of four analyses.

With limited state and local funds as well as a growing student population, how elected decision makers allocate money to impact college readiness needs to be explored. The purpose of this research study was to explore the impact of instructional expenditures on educational outcomes. This multivariate multiple regression study specifically explored the impact of instructional expenditure ratios and per pupil instructional expenditures of every public school district in Texas on student performance college readiness indicators measured by state assessments (State of Texas Assessment of Academic Readiness [STAAR] Mathematics and English Language Arts [ELA] test scores) and national assessments (American College Test [ACT] and Scholastic Assessment Test [SAT] scores) over a 5-year period. Fifteen different regression models were established with various significant predictors of expenditures and revenue funds. These models explained up to 46% of the variance for college readiness scores over the 5-year period.