When a community considers whether to build a new school or improve existing buildings, it’s natural to wonder whether the investment improves student achievement. Economists have disagreed for years about the impact capital spending has on student achievement, with some studies showing positive impacts while others don’t.
Yale economist Barbara Biasi sand colleagues Julien LaFortune of the Public Policy Institute of California and David Schönholzer of Stockholm University recently examined bond votes for capital projects involving billions of dollars in 17,000 communities across the United States to quantify the effects of school bond issues on student test scores and home prices. Here’s what they found:
“On average, authorizing new school bonds raises both student test scores and local home prices,” the researchers found. “But the effects depend on how the money is spent. Projects that raise student test scores—like improving HVAC systems or replacing roofs—are not likely to raise home prices. New athletic facilities, however, do raise home prices, but don’t increase test scores.” The researchers also determined that bond authorization” is most beneficial in districts with more disadvantaged student populations, in part because these districts prioritize bonds that improve learning.”
Holyoke’s City Council and the Massachusetts School Building Authority (MSBA) recently authorized millions of dollars of investments in HPS buildings, including HVAC, roofing, windows, flooring, and many other important improvements. In addition, the City of Holyoke and the MSBA in June 2023 approved $85.5 million funding to build a new middle school for approximately 550 students. The new school is an important component of Holyoke’s efforts to strengthen educational learning opportunities and reimagine the middle school experience. The new middle school will replace the poorly designed, energy-inefficient William R. Peck Middle School that no longer meets the needs of a modern education.