Allocation of educational resources in Indiana school districts and the effect on 10th grade ISTEP+

The state of Indiana is currently requiring school systems to set financial goals to increase the amount of expenditures toward the classroom. On a national level, there is a push to reach the concept of the 65% solution and now specifically local representatives are discussing this concept. This concept expects school districts to spend 65% of their total general fund revenue on instruction. Currently the Indiana Office of Management and Budget must analyze and report to the State Board, the Governor, and the General Assembly concerning the progress each school corporation has made to improve the ratio of Student Instructional Expenditure to all other expenditures for the previous school year.Is there a relationship between the free and reduced lunch percentage per district and the achievement of students on the ISTEP+ in Indiana? Is there a relationship between the percentage of student instructional expenditures to all other expenditures and achievement of students on the ISTEP+ in Indiana? Is there a relationship between General Fund expenditures per student and the achievement of students on the ISTEP+ in Indiana? Is there a relationship between the average teacher salary and the achievement of students on the ISTEP+ in Indiana?The first set of data compared free and reduced lunch participation for 2006-2007 to the percent of students passing 10th grade 2007-2008 ISTEP+. The second set of data compared percentage of student instructional expenditures to all other expenditures in 2006 compared to the percent of students passing 10th grade 2007-2008 ISTEP+. The third set of data compared the per pupil expenses for 2006-2007 to the percent of students passing 10th grade 2007-2008 ISTEP+. The fourth and final set of data compared the average teacher salary in each school district to the percent of students passing 10th grade 2007-2008 ISTEP+. These comparisons were made with a correlation process to see where the data clusters are and to measure the relationships. There were eight comparisons made to evaluate whether there is a relationship between the academic achievement of Indiana students and the independent variables through a multiple regression model.Based on the findings of the data that was studied by the research, the following conclusions were drawn. The independent variables in this study did demonstrate a significant difference in language arts and math scores in the multiple regression model. Free and reduced lunch percent does make a significant difference in ISTEP+ language arts and math scores on the 10 th grade assessment. Teacher salary also made a significant difference in ISTEP+ math scores on the 10th grade assessment. Instructional expenses to the classroom did not demonstrate a significant difference in ISTEP+ language arts and math scores on the 10th grade assessment. Per pupil expenses did not demonstrate a significant difference in ISTEP+ language arts and math scores on the 10th grade assessment. Teacher salary did not demonstrate a significant difference in ISTEP+ language arts.