By Andrea Brady

Seth Godin, a marketer, author and one of my favorite bloggers, recently wrote an article about marginal cost. In it, he asks, “How much does it cost Wikipedia to have one more person read an article? How much does it cost Chanel to produce one more bottle of perfume? How about one more digital copy of a Grateful Dead concert?”
Marginal, or incremental, cost is of great concern to school districts, too. The standard measure of “how much it takes to educate a student” is the state’s calculation of expenditure per pupil. However, this is not an accurate number for several reasons.
The way expenditure per pupil is calculated is to take total expenditures (in categories as defined by the state) and divide this by the total number of students served that past year. If you understand what is in this number, it is a good way to compare districts and get a feel for a district’s efficiency. And, I’m happy to say, Milford’s expenditure per pupil has been lower than not only other excellent districts, but also the state average, for quite a few years. In addition, when you adjust the number to account for costs that shouldn’t be included because they aren’t truly expenses (see my article here), we look even better. Continue reading →
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