More teachers means more money for educational procurement

When looking at the number of teachers per state, states that employ the most teachers are not surprising. Texas, California, and New York lead the rankings, with Florida, Illinois and Pennsylvania close behind. This makes logistical sense because, in that order, these states also have the highest populations. Does this mean that the more teachers per state, the more they will spend on education? An in-depth analysis of teachers to educational spending proves for the most part, yes.

The states with the highest number of teachers spent the most on educational procurement in 2011. There is also a strong 93 percent correlation when comparing the number of teachers to total education expenditures, which include teacher salaries as well as educational procurement. In 2011, states spent between 23 percent and 42 percent of their educational budget on teacher salaries, with the average state spending around 32 percent -- leaving 68 percent of the remaining budget for educational procurement. Interestingly, states that spent the most on teacher salaries – North Dakota, Arizona, and Nebraska – were not the highest grossing states.

So, what does this mean for vendors? Despite the old saying, in this case, it is okay to judge a book by its cover, or a state by its size. The states with the highest population are spending the most on educational procurement. California, New York, and Texas spent nearly double than what other states spent on educational procurement in 2011, and it’s looking like the pattern will continue in 2013. With opportunities such as a statewide education IT solution coming out of Texas, and e-discovery services and PBX systems coming out of New York, it would be wise for vendors to keep a close eye on these states.

Nevertheless, in no way should vendors avoid states with less educational funding. States still have the same needs as states with heftier budgets; it just might take a bit longer to launch procurement activities. Still, these states are and will continue procuring big projects, such as Rhode Island’s K-2 summative assessment system and North Dakota’s statewide longitudinal data system.

Vendors should use this information to target either teacher-related systems or classroom-related systems based on size. GovWin IQ subscribers can read further about these projects by clicking on the associated links.

Non-subscribers can gain access with a GovWin IQ free trial.