I think that the amount of money spent per pupil is not a critical factor. It does help I’m sure to a certain point, but the issue with the educational system is not about money. For example, Many inner city schools spend far more money per pupil than suburban schools and yet these inner city school systems have terrible results.
The real issue is what you addressed with the introduction of phonics, which addresses the instruction and the material and how it’s taught. These are improvements that would be felt across all socioeconomic levels and schools across geographic areas. Another critical factor is parents and how they support their children and the time that parents have to support their children. Lower socioeconomic level families do not have time and do not have money to support children academically as they are working multiple low income jobs while trying to survive and pay rent and eat.