All analyses presented in this report and the accompanying tables are calculated using an inflation adjuster, with the exception of the data presented in Appendix C. Unadjusted figures represent the revenues and expenditures reported in each state's audited financial records and reports, with some adjustments made by NCES for item nonresponse. They are the actual dollars acquired for and spent on education in a given school year. Inflation-adjusted figures are designed to take into account inflation occurring over the 13-year period by adjusting the data to FY 02 dollars. The inflation adjuster used in these analyses is the Consumer Price Index (CPI). The CPI is published by the U.S. Labor Department, Bureau of Labor Statistics. This price index measures the average change in inflation of a fixed market basket of goods and services purchased by consumers. The CPI used in this report is for a July 1 through June 30 fiscal year. This was calculated by summing up the monthly CPIs for each 12 month period. The CPI multiplier is calculated by dividing the CPI of the base year (FY 02), by the CPI for the year to be adjusted. The CPI multipliers were rounded to the fourth decimal. Table 1-1 shows the CPI for FY 90 to FY02, adjusted for a July to June fiscal year.
| Table 1-1 Consumer Price Index and Consumer Price Index Multiplier |
||
|---|---|---|
| Year | CPI | CPI Multiplier |
| 1990 | 133.9 | 1.4034 |
| 1991 | 138.2 | 1.3306 |
| 1992 | 142.5 | 1.2893 |
| 1993 | 146.2 | 1.2502 |
| 1994 | 150.4 | 1.2187 |
| 1995 | 154.5 | 1.1847 |
| 1996 | 158.9 | 1.1533 |
| 1997 | 161.7 | 1.1213 |
| 1998 | 164.5 | 1.1017 |
| 1999 | 169.3 | 1.0830 |
| 2000 | 175.1 | 1.0526 |
| 2001 | 178.2 | 1.0177 |
| 2002 | 182.1 | 1.0000 |
| Source: U.S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index; and the Digest of Education Statistics 2005 (NCES 2006-030) | ||
Inflation-adjusted figures allow for greater comparability of revenues and expenditures across time. As a result, this report largely relies upon inflation-adjusted figures in the analyses presented in chapters 2 through 4. The unadjusted figures in Appendix C are important to include because these are the numbers included in official reports and in communications to policymakers, education administrators and teachers, and the general public. It should be noted that the CPI is just one inflation adjuster that is available to take into account cost-of-education differences. No adjustments have been made to reflect variation in costs in different parts of the country.
