More funding can enable schools to offer competitive pay and benefits packages, increasing the likelihood of recruiting highly qualified teachers, according to a 2002 report published in Educational Leadership. According to The New York Times, charter schools -- which are often lauded as school success stories -- pay their teachers more. A 2011 international study published by Economic Policy also found that higher teacher pay leads to better pupil performance.
More funding offers schools the opportunity to buy state-of-the art-supplies such as new computers and updated textbooks. According to PBS, some schools struggle with outdated equipment, and when items such as library books aren't up to date, students don't have access to the latest information and the best possible learning tools.
When a school district has residents who make more money, schools tend to perform better, according to a report by the University of Michigan. This doesn't necessarily mean that more money equals better schools, however, and instead indicates a correlation between money and school quality. It could be that wealthier parents spend more time educating their children and are more educated themselves, but the correlation could also be a direct result of these schools having more access to funds.
While money can increase access to quality teachers and school supplies, it's not the only factor that plays a role in school quality. National Review Online reports that school funding has increased dramatically since 1970, without an equal improvement in performance. A 2012 Deloitte study found that British schools didn't necessarily perform better with more funding, and a report by the Center for American Progress emphasizes that school funds are often misused in ways that don't improve school performance.