In the business world, companies that fail to perform disappear. Think of Braniff Airlines, Montgomery Ward, and other has-been household names.

But in Pennsylvania (and elsewhere) schools that fail to attract customers ... get more money. Says Jake Hauk, of the Allegheny Institute:

In fact, the state formula for funding, known as the Basic Education Formula (BEF), guarantees that not only will each district receive at least as much as the year before, but will also receive an increase based on factors such as poverty, growth, and an inflation index. Thus, no matter how many students a district loses, its state supplement can and often does continue to grow. This is the situation the Pittsburgh Public School District faces—declining enrollment and increasing state subsidies.

Read more here (PDF) in an institute report.