Reading & Literacy What the Research Says

There’s a Cost to Holding Back Struggling Readers. See How Much

By Sarah D. Sparks — March 18, 2024 3 min read
Children reading books, bookcase behind them
  • Save to favorites
  • Print

Districts can end up footing most of the bill for implementing state “read by grade 3” mandates, new research suggests, but in the long run, struggling students may pay even more for being held back.

Michigan is among 25 states and the District of Columbia with statewide reading initiatives that require schools to retain students who do not read on grade level by the end of 3rd grade, though several states, like Michigan, have relaxed or suspended the retention provisions of their laws.

A forthcoming study presented at the annual Association for Education Finance and Policy conference in Baltimore last week looks at the short and long-term costs of Michigan’s Read by Grade Three law. The law calls for districts to support struggling readers in early grades through literacy coaches, “evidence based” curricular materials and assessments, and developing Individual Reading Improvement Plans for students. From 2018 to 2023, students who did not meet reading proficiency benchmarks on the state test by the end of grade 3 must (with some exceptions) be held back and given additional interventions the following year.

“These sorts of large-scale literacy reforms are becoming more and more common nationally,” said David Knight, an associate professor at the University of Washington, in a discussion of the working paper at the conference last week.

While Michigan’s and other state reading initiatives include some new grants, “it’s more like an unfunded mandate,” Knight said.

The study found Michigan districts spent about $2,600 per student, per year, to implement the reading initiative, including interventions like tutoring and summer school for students at risk of being held back, and for those who did repeat a grade.

The reading interventions accounted for about 17 percent of the average per-student spending in districts from 2019-20 to 2022-23 school years (when the law was fully implemented), and local districts ate more than 90 percent of that cost, the study found. New funding accounted for only about 8 percent of spending on the reading supports.

“When we have these big statewide literacy reforms, they’re primarily leveraging existing resources,” Knight said. “It’s not clear if that really is doing what will ultimately drive success” for readers.

Only about a third of the cost of the reading law came from expenditures on new teachers or support staff; more than 60 percent came from rearranging existing teachers’ instructional time. Special education teachers and paraeducators spent the most time implementing the reading interventions under the law.

Knight and his colleagues also used education and workforce data to estimate that students retained under Michigan’s law would have to complete an average of another .63 of a school year to graduate, and would be about 4.8 percentage points more likely to drop out. Prior labor data studies show students lose an average of $40,000 in lifetime earnings for every year they are held back, both because they enter the workforce later and because students who must repeat a year are less likely to graduate high school and go on to college. For students retained in Michigan, this meant they could lose more than $36,000 in lifetime income.

These costs fell far more often on already disadvantaged students.

The study is part of a larger evaluation of the law by Michigan State University, the University of Washington, and Pennsylvania State University. A prior Michigan State study found that as of the 2022-23 school year, about 5,680 3rd graders were eligible to be held back based on their scores on the Michigan Student Test of Educational Progress, or M-STEP, in English/language arts, but only 545 students actually were retained. Low-income students were twice as likely as wealthier students to be retained, and Black students were more than twice as likely to be held back as white students under the law.

“A huge portion of the cost of grade retention is the income that students have to forgo by spending an extra year in school,” Knight said. “The cost of grade retention for students is much higher than any of the costs of the actual program.”

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
There But Not Present: Rethinking Student Engagement
Learn how to recognize the early signs of disengagement and what the behavioral science reveals about which interventions actually work.
Content provided by Frontline Education
Teacher Preparation Webinar What Teacher Education Should Look Like in the Age of AI
Explore the current trends around the use of AI in teacher preparation and continuing education with data from the EdWeek Research Center.
English Learners Webinar How Can School Districts Better Support English Learners With Disabilities?
Join this webinar to hear recent findings from the EdWeek Research Center and discover practical strategies for improvement.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Reading & Literacy Don't Overlook the Power of Oral Language, Reading Experts Say
It's core to reading and writing, said researchers at the annual conference of the Reading League.
4 min read
Left: Diana Oviedo-Holguin teaches a first grade English learner class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025. Right: English and Spanish materials are seen on her walls.
Diana Oviedo-Holguin, left, teaches a first grade English-learner class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025. Oral-language development is a critical part of reading that helps with vocabulary and comprehension, and is particularly important for EL students.
Noah Devereaux for Education Week
Reading & Literacy Spotlight Building Responsive Literacy Systems for Every Learner
Build a responsive literacy system with strategies for stronger instruction, targeted support, and success for every reader.
Reading & Literacy Opinion How a Marketplace Full of Reading Tools Only Adds to the Literacy Problem
This is a symptom of a larger issue: the lack of coherence in K-12 education.
Michelle Brown
•
5 min read
Tapestry of reading curriculums used- coherence
Vanessa Solis/Education Week + Getty
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Reading & Literacy Whitepaper
Doing Less to Achieve More: Eastern U.S. Leaders on Literacy
As districts work to sustain evidence-based literay practices, see what Eastern U.S. literacy leaders are choosing to stop, strengthen, a...
Content provided by Lexia Learning