Learning to Count: School Finance Formula Count Methods and Attendance-Related Student Outcomes

School systems are under increasing pressure to improve student performance. Several states have recently explored adopting student count methods for school funding purposes that incentivize school attendance and continuous enrollment by adjusting funding for changes in enrollment or attendance over the course of the school year. However, no empirical evidence existed to support these policy changes. This exploratory article empirically tests the relationship between state student count methods and three measures of attendance-related student outcomes from different federal data sources. Our analysis finds that states with high incentive student count methods have statistically and practically higher graduation rates and lower dropout and repeated absences rates. States considering a transition away from existing student count method policies should proceed with caution and consider potential equity and administrative implications.