How do districts evaluate program effectiveness for budgeting decisions?

• A. Evaluate programs based on popularity.
• B. Use program evaluations, outcome data, cost-benefit analyses, and ROI to determine funding allocation and discontinuation decisions.
• C. Only use standardized test scores.
• D. Only consider the number of programs funded.

Answer: (B)

District budgeting relies on measuring whether programs meet intended outcomes and deliver value for money. This means conducting formal program evaluations to assess effectiveness, gathering outcome data on student results, and performing cost-benefit analyses or return-on-investment calculations to compare the benefits a program provides with its costs. When the evidence shows strong positive outcomes relative to costs, funding can be continued or expanded; when the evidence is weak or costs outweigh benefits, funding may be reduced or stopped. Relying on popularity, standardized test scores alone, or simply the number of programs funded doesn’t give a complete picture of value or efficiency, because popularity is subjective, test scores reflect only one dimension of learning, and counting programs ignores size, cost, and impact.