Obama’s ‘Race to the Top’ and the Education Money Myth - WSJ.com

Four billion dollars is a lot of money, but it’s a tiny percentage of what the U.S. spends on education. The Department of Education estimates that the U.S. as a whole spent $667 billion on K-12 education in the 2008-09 school year alone, up from $553 billion in 2006-07. The stimulus bill from earlier this year includes some $100 billion more in federal education spending—an unprecedented amount. The tragedy is that nearly all of this $100 billion is being dispensed to the states by formula, which allows school districts to continue resisting reform while risking very little in overall federal funding.

All of this is on top of the education spending boom during the Bush years to pay for the 2001 No Child Left Behind law. Democrats liked to claim that law was “underfunded,” but the reality is that inflation-adjusted Education Department elementary and secondary spending under President Bush grew to $37.9 billion from $28.3 billion, or 34%. NCLB-specific funding rose by more than 40% between 2001 and 2008.