Example 1: Educational Funding and School Performance

The System

A school district allocates resources based on standardized test performance, with higher-performing schools receiving additional funding, technology, and experienced teachers.

How It Works

• Schools with early success (often in affluent neighborhoods) receive:
• Additional funding for programs
• Technology upgrades
• Recruitment of top teachers
• Advanced placement courses

• Reduced class sizes

• Schools with initial struggles (often in disadvantaged areas) face:

• Budget cuts and resource reductions
• Loss of experienced teachers to higher-performing schools
• Larger class sizes
• Fewer advanced programs
• Aging technology and facilities

The Reinforcing Cycle

1. High-performing schools get more resources
2. Better resources attract better teachers and students
3. Better teachers and students improve performance
4. Better performance justifies even more resources
5. The cycle accelerates, creating growing inequality

Long-term Consequences

• Successful schools become elite institutions with excellent outcomes
• Struggling schools spiral downward, unable to compete for resources
• Community segregation increases as families move to access better schools
• Overall system inequality grows despite good intentions to reward performance

Breaking the Pattern

• Resource equity policies that ensure baseline funding regardless of performance
• Targeted investment in struggling schools to level the playing field
• Collaborative networks where successful schools share resources with struggling ones
• Multiple success metrics beyond standardized test scores

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