Expenditure per Student in High Schools in Israel

A new study by the Taub Center examines the expenditure per student in high school in Israel’s State school system, comparing between budgets in the Hebrew State education system, State-religious, and Arab State system. The study relates to the budget provided by the Ministry of Education only, which excludes budgets provided to schools by local authorities, parents, and non-profits. Taub Center researchers Nachum Blass and Haim Bleikh looked at data for 2014 to 2022 and found that there are substantial differences in the expenditure per student in high school depending on the sector of the school. Nevertheless, the main source of the differences lies in the budget allocation formula used by the Ministry of Education. After controlling for the main factors that influence the level of per student expenditure, it was found that the gaps between sectors narrowed considerably.

This paper is the third in a series published by the Taub Center examining the budgets allocated to classes and students and describing developments in the field relating to budgetary inequalities.

A substantial improvement in the socioeconomic composition of students in the Hebrew sector, primarily in State-religious education

The research shows that as of 2022 there was a large gap between the Hebrew and the Arab education systems in the socioeconomic composition of their students: 69% of students in the Hebrew State system and 65% in the State-religious system were in the highest socioeconomic quintiles, versus only 8% of students in the Arab state education system. In contrast, in Arab State schools, 81% of students are in the two lowest socioeconomic quintiles versus 18% of students in Hebrew State and 20% of those in State-religious education schools.

In the period studied, there was an improvement in the socioeconomic composition of students in the Hebrew education system, although very little change was seen in the Arab sector. The study shows a substantial improvement specifically in the State-religious education system, which went from 52% to 65% of its students belonging to the two highest socioeconomic quintiles.

A greater increase in teacher seniority in the Arab education system and a rise in the number of teachers with a master’s degree in all sectors, particularly in the Arab education system

The study shows that there was a slight dip in the seniority level of teachers in the Hebrew system and a substantial rise of seniority levels in the Arab system. In addition, there is an increase in the share of teachers with a master’s degree in all sectors and supervisory authorities, especially in the Arab sector. These changes have an impact on the budget: in the Arab sector, a rise in seniority and education level of teachers contributed to higher budgets, while in the Hebrew education system, and particularly in the Hebrew State system, the decline in seniority levels was somewhat balanced by increases in budget for rising teacher education levels.

The budget per student in State-religious education and in the Hebrew State system are greater than in the Arab State education system

Between 2014 and 2022, the budget per student in State-religious education was the highest, and the budget in Arab State education was the lowest. Alongside this, the greatest increase in per student budgeting was in the Arab State system, 73%, versus 51% in the State-religious and 41% in the Hebrew State systems. A look at changes in budget per student by Nurture Index shows that in all of the quintiles there was an increase of 50% between 2014 and 2022.

Nevertheless, the gap in budget per student between the weakest quintile and the strongest grew by 15% in 2014 to the benefit of those in the weakest quintile, 21% in 2019, and in 2022, declined to 17%, reflecting affirmative action in the high school system.

Disparities in budget per student between population groups narrowed substantially

According to the research findings, although there continue to be disparities in expenditure per student between the sectors, they are narrowing consistently. Between 2014 and 2022, the gap between the Arab State education and the Hebrew State education in average expenditure per student was halved, from 32% to 16%, and the gap between Arab State education and State-religious narrowed from 39% to 29%. Within Hebrew education, the data indicate a mixed trend. The gap in average expenditure per student between State-religious and Hebrew State grew from 11% in 2014 to 26% in 2019, and since then it declined, reaching 19% in 2022.

In 2022, the per student budget in the State-religious system was NIS 44,000 per year versus NIS 37,000 in Hebrew State and NIS 31,000 in Arab State education.

Factors that influence the differences in expenditure per student

Taub Center researchers found that the characteristics that express the difference in class type (regular or special small classes as part of affirmative action) and study majors (academic or technological) provide the greatest contribution to explaining the difference in per student budget and their contribution is actually trending upwards over time.

As a result, the contribution of sector and supervisory authority is much lower and actually trending downward over time. This is also the case for the Nurture Index and the periphery index with an aggregate influence that is quite small.

In light of these findings, the researchers contend that perhaps it is time to question the proper budget criteria in national terms as well as in terms of issues of social justice and ethical values. It may be time to reevaluate and increase the differential and periphery components in the high school budgets so that they better reflect student socioeconomic differences.