As Education's Funding Cliff Nears, Anxieties Rise

States, Districts Already Mapping Strategies to Keep Momentum When Stimulus Aid Stops

It’s a warning that’s etched in the mind of every state and local education policymaker: Beware the funding cliff.

States and school districts are already bracing for the budget crunch that is almost certain to hit when the up to $100 billion in education aid made available under the American Recovery and Reinvestment Act runs out starting later this year.

Aware that the fiscal picture in most states will likely remain bleak for the next few years, state and local leaders are trying to pinpoint new revenue sources for education, and are seeking ways to trim spending to blunt the impact of the stimulus aid’s...