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How much money is spent on standardized tests annually?

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The 2008 Pew Center States report said that more than $1.1 billion was spent on standardized tests that year. That's just on the tests themselves. Not on implementing the tests. Any teacher can tell you that the cost of implementation is going to be even more than that because they have to hire retired teachers and subs to help with individualized education plans for special ed and small group administration. It's increasingly expensive. The Race to the Top grant program--which will likely be a blueprint for the re-authorization of the Elementary and Secondary Schools act (that's the law that NCLB came from)--requires that high-school kids take "exit" tests across all subjects.
All of this money goes to a few big testing companies: Harcourt Educational Measurement, CTB McGraw-Hill, Riverside Publishing (a Houghton Mifflin company), and NCS Pearson (A UK Company).

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It is estimated that $423 million is spend on standardized tests between all of the states combined annually. There are about 600 million standardized tests administered each year.

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This is no longer true. The Pew Research Center reported in 2008 that $1.1 billion was spent on standardized tests. This was up 160% in just 2002 when that $423 million number was put out. Of course, the big difference is that NCLB was introduced in 2002, so spending went up almost immediately as each state was required to develop and implement a state-wide testing system for grades 3-8.
The newest policies (Race to the Top being one) rely on even more tests--adding the high-school level to national testing mandates.
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