That ALEC report is so dumb. They need to go back to school themselves. They claim that because SAT scores are not increasing, that suggests that schools are failing. You do know SAT scores are essentially designed to stay the same over time, right? And it is a voluntary test, only taken by a small sample of students, right? And you do know that parents who send their kids to private schools tend to be more wealthy, right? (Once you control for individual level factors, any "advantage" of private schools disappears - I've done these analyses myself using millions of students and thousands of schools.)
In terms of spending on schools, your suggestion that rich people don't send their children to schools that spend more per pupil is laughable. Ridiculous. Take any large city in the United States. Let's say Chicago. The Chicago Public Schools spend, on average, around $20,000 per pupil per year (https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fwww.illinoisreportcard.com%2FSchool.aspx%3Fschoolid%3D150162990252086). New Trier Public Schools, in the Chicago suburbs, spends $33,000 per pupil per year (https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fwww.illinoisreportcard.com%2FSchool.aspx%3Fsource2%3DPerStudentSpending%26amp;Schoolid=050162030170001). The average family income in Winnetka is $155,000 (https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fcensusreporter.org%2Fprofiles%2F16000US1782530-winnetka-il%2F) while the average family income in Chicago is $48,000 (https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fcensusreporter.org%2Fprofiles%2F16000US1714000-chicago-il%2F).
You can't tell me $13,000 PER PUPIL PER YEAR makes no difference whatsoever in school quality. It's smaller classes. It's being able to recruit the best teachers. It's newer books, updated computers. It's warm, welcoming, comfortable buildings. It's music equipment that works and theater spaces and athletic facilities.
And this repeats over, and over, and over, and over again all over the U.S.
You do not have to define "rich / average / poor" to see how obvious it is that people with more money work hard to attend schools that spend more per pupil.