US public expenditure on education has declined significantly in numerous states since the great recession. As of 2015, overall state funding of education is less than the pre-recession funding level in 29 states. This study analyzes the effect of education spending on economic growth. We construct a panel of state-level data from 2003 to 2015, to compare the economic performance of states relative to their education spending, as well as the effects education spending on their speed of recovery from the great recession. This analysis sheds further light on the connection between education investment and economic growth.
