Empirical studies, both national and international, consistently demonstrate that socioeconomic status and contextual factors at the levels of learning groups, schools, and local communities significantly impact educational opportunities (e.g., OECD, 2019). In Germany, the correlation between students’ socioeconomic status and academic performance is particularly strong (ibid.). Equity funding policies are considered a potential instrument for reducing educational disparities, as they provide additional resources – such as staff, financial support, or other assistance – to schools facing challenging circumstances. As Verelst, Bakelants, Vandevoort, and Nicaise (2020) indicate, more than half of EU countries implement some form of equity funding, targeting student groups from low socioeconomic backgrounds or with a migration history. Furthermore, schools in disadvantaged areas frequently experience higher teacher turnover and face greater challenges in recruiting qualified teachers and school leaders compared to those in more advantaged settings (e.g., Simon & Johnson, 2015; Clotfelder, Ladd, Vigdor, & Wheeler, 2007). Equity funding policies have the potential to address these issues, as a recent meta-analysis underscores the impact of external educational policies on teacher retention (Nguyen, Pham, Crouch, & Springer, 2020).

Despite its potential, empirical evidence on the effectiveness of equity funding remains scarce and inconsistent. The practical implementation of such policies depends on resource availability and the political commitment to reducing educational inequalities. In decentralized education systems, municipalities manage their own financial resources while simultaneously administering state or federal funding. From an educational governance perspective (e.g., Altrichter, Brüsemeister & Wissinger, 2007), decision-making at the municipal level is influenced by institutional, political and multi-level governance dynamics (e.g., Coburn, Honig & Stein 2009).

The concept of evidence-based decision-making has gained increasing relevance in recent years, postulating that educational policies should be informed by empirical data to ensure more effective resource allocation (e.g., Honig & Coburn, 2008). Research suggests that both the amount of allocated resources and the mechanisms of distribution and utilization significantly influence their impact (e.g., Franck & Nicaise, 2022).

Based on international studies, three main allocation methods can be distinguished (Fazekas, 2012; Atkinson et al., 2005; Ross & Levačić, 1999):

(1)  data-driven approaches, which rely on statistical indicators such as socioeconomic status

(2)  of the student body, application-based procedures, where schools proactively present their individual needs or express interest in a specific measure, and

(3)  experience-based approaches, which are based on local expertise.

Municipalities play a central role in shaping educational opportunities through (co-)funding, resource distribution and management. Their degree of autonomy determines their decision-making flexibility (Atkinson et al., 2005). International findings indicate that effective resource utilization is achieved not only through resource allocation but also by ensuring their targeted and coherent application (Atkinson et al., 2005; Franck & Nicaise, 2022; Verelst et al., 2020). In Germany, municipalities manage their own financial resources—e.g., for school construction, renovation, all-day schooling, and child and youth welfare—while also co-administering state and federal funds, such as those for school social work.

This dual role within the multi-level education funding system grants autonomy but also presents governance challenges (van Ackeren et al., 2024). However, little is known about the specific configurations, implementation processes, and impact of equity funding in Germany.

This study aims to fill this gap through an empirical, multi method analysis of equity funding policies in German municipalities, offering insights into equity funding strategies.

This research project, funded by the German Federal Ministry of Education and Research, employs a multimethod approach to analyze the prevalence, design, and intentions behind equity funding in German municipalities. The study adopts a broad perspective on education, including both resources directly allocated to schools and those supporting extracurricular educational processes within the social environment. The research is guided by two key questions: - What equity funding resources are provided? - What configurations of equity funding policies can be identified? - How and according to what intentions are equity funding policies implemented in practice? The study follows an exploratory research design, combining document analysis and qualitative interviews. A systematic document review was conducted to identify municipalities and states with established equity funding policies in the field of primary and secondary education. Content analysis (Mayring, 2007) was used to evaluate the scope, type, and purpose of allocated resources (e.g., staff, financial support, additional programs) and their distribution mechanisms (e.g., data-based, application-based, or experience-based allocation). The code system was developed both deductively and inductively and the software MAXQDA 22 was used. To gain deeper insights, semi-structured interviews were conducted with municipal actors involved in resource allocation. A systematic sampling strategy ensured the inclusion of diverse perspectives. In each case municipality, a maximum of 12 interviews were conducted, featuring narrative-generating segments focusing on the development and practice of equity funding. Interviews were transcribed and analyzed following qualitative content analysis (Kuckartz, 2018). This multilevel approach captures the complexity of municipal decision-making within broader governance structures, integrating policy documents and firsthand perspectives to offer a comprehensive understanding of how equity funding across different municipal contexts.

Findings reveal significant heterogeneity in the design and implementation of equity funding policies across German municipalities. Financial and non-financial resources from federal, state, local, and civil society sources serve different policy objectives. Some municipalities lack formal equity funding policies, while others allocate substantial resources to socioeconomically disadvantaged schools am areas. Municipalities play a multifaceted role in the multi-level governance system, navigating between funding sources, political objectives, and administrative regulations. This complexity requires balancing short-term pragmatic decisions with long-term strategic planning. The integration of data, experienced based assessments, and application processes adds to the complexity, requiring precise coordination. Governance practices aim not only for targeted resource allocation but also for effective implementation. Findings align with international research (Fazekas, 2012; Atkinson et al., 2005; Ross & Levačić, 1999), confirming the relevance of different allocation procedures – data-driven, experience-based, and application-based. A key contribution to international discourse is the study’s focus on non-data-based decision elements, which have received little differentiation in existing research. The analysis highlights how municipalities adjust allocation strategies to local needs, emphasizing the necessity of balancing autonomy and regulation. Overall, the study underscores that equity funding policy place high demands on municipal governance. The combination of overarching policy objectives with flexible resource use is compatible with current international research (Atkinson et al., 2005; Franck & Nicaise, 2022; Verelst et al., 2020), while evaluation and monitoring remain areas for further development.

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