Federal

How Much Federal Money Do Schools Need to Survive the Coming Financial Blow?

By Daarel Burnette II — April 21, 2020 2 min read
BRIC ARCHIVE
  • Save to favorites
  • Print

America’s public schools will need $70 billion for three consecutive years in the next round of federal stimulus spending to avoid painful cuts such as teacher layoffs, according to a new analysis.

That level of spending—from fiscal analyst Michael Griffith—would help blunt the dramatic budget cuts that districts will likely be forced to make because of the economic fallout brought on by the coronavirus pandemic.

The $13.5 billion CARES Act, as the first round of stimulus spending is known, will not spare most school districts from needing to make budget cuts this fall, he said.

See Also: Coronavirus Stimulus for Schools: Calculating What Your State Gets and What It May Need

Griffith said any new dollars should be targeted toward states with high rates of coronavirus infections and where school districts are more dependent on state aid. The existing CARES Act funds are being distributed based on the Title I, part A formula, which considers several factors including the size of districts, poverty rates, and levels of local and state aid.

The CARES Act for most states can only stave off budget cuts up to 8 percent, Griffith said. But most states now are projecting cuts next year anywhere from 8 percent in Kansas to 20 percent in Alaska. And those cuts will be felt most acutely in the K-12 sector, which is heavily reliant on state aid.

“There will be very few districts that will be pulling out of this quickly,” said Griffith, who will soon join the Learning Policy Institute as a senior school finance researcher and policy analyst.  “If there is another round of federal money going out, we can’t spend it all in the first year.”  

Congress is expected to reconvene in May to debate another stimulus package, but there seems to be little appetite, especially in the Senate, for a bailout of school districts considering the high unemployment rate.

As Education Week reported recently, Griffith has done a data analysis to show how much money the CARES Act provides states and allows users to determine how much money they think states should receive in the next round of stimulus funds.

As they fight the spread of the coronavirus, many states, have almost drained their rainy day funds to prop up local health departments, buy masks and ventilators, and send out unemployment checks. That means less money for schools in those states especially hard hit by the virus, Griffith said.

Ary Amerikaner, the vice president for P-12 policy, practice, and research for EdTrust, an advocacy organization that pushes for greater accountability and more equitable spending, said the next stimulus package should be used to extend the school year for struggling students and be in the range of $100 to $200 billion.

She thinks Congress should continue to use the Title I formula for sending out the aid because, she said, it’s familiar and pushes for equity between states and districts. Some advocates believe it to be a deeply flawed way to divvy up money for schools.

“Congress should be ensuring those dollars are spent on things that we know will accelerate learning for those students who are most impacted by the shutdown such as summer school, additional school, or tutoring,” she said.  

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
The Road to Opportunity: Making CTE Accessible for All
The most valuable CTE happens off campus. For too many students, transportation is the barrier that keeps opportunity out of reach.
Content provided by HopSkipDrive
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
New Hire, No Laptop, No Login: Preventing Day-One Disruption
What happens before day one matters. Discover how districts are improving the new hire experience.
Content provided by Frontline Education
Teaching Profession K-12 Essentials Forum Supporting the New K-12 Workforce: What Teachers Need to Stay at School
 Join this free virtual event to discover what teachers say they need to feel supported to stay in classrooms for the long haul.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Federal Trump's Justice Dept. Investigates Dozens of Districts Over LGBTQ+ Curricula
The investigations target how schools discuss sexuality and gender identity and whether parents can opt their children out of lessons.
8 min read
The U.S. Department of Justice is investigating how 43 school districts in three states teach about sexuality and gender identity and whether they give parents the opportunity to opt their children out of lessons that conflict with their religious beliefs on June 16, 2026.PICTURED, Protesters gather outside the Glendale Unified School District headquarters in Glendale, California, on June 20, 2023. Over 300 people gathered outside the Glendale Unified School District headquarters, as protests continued over the issue of teaching children about same-sex parents and queer issues.
Protesters gather outside the Glendale school district in Glendale, California, on June 20, 2023 over the issue of teaching children about same-sex parents and queer issues. The U.S. Department of Justice is now investigating three other school districts over LGBTQ+ themes in sex ed. and beyond. (The Glendale district is not one of them.)
DAVID SWANSON / AFP via Getty Images
Federal Education Department Moves Special Ed. and Civil Rights to Other Agencies
Special education programs help schools serve more than seven million K-12 students with disabilities nationwide.
9 min read
A banner featuring a photo of President Donald Trump hangs outside the Department of Justice in Washington on Monday, June 15, 2026.
A banner featuring a photo of President Donald Trump hangs outside the Department of Justice in Washington on Monday, June 15, 2026. The U.S. Department of Education is moving its office for civil rights to the Justice Department as part of a fresh wave of outsourcing.
Bill Clark/CQ Roll Call via AP
Federal Trump's Ed. Dept. Backs Away From Addressing Civil Rights for Black Students
Civil rights attorneys describe the administration’s actions as an inversion of legal history.
6 min read
Thomas Chalmers Public School sign is seen outside of school in Chicago, Wednesday, July 13, 2022. America's big cities are seeing their schools shrink, with more and more of their schools serving small numbers of students. Those small schools are expensive to run and often still can't offer everything students need (now more than ever), like nurses and music programs. Chicago and New York City are among the places that have spent COVID relief money to keep schools open, prioritizing stability for students and families. But that has come with tradeoffs. And as federal funds dry up and enrollment falls, it may not be enough to prevent districts from closing schools.
Children are seen outside the Thomas Chalmers Public School in Chicago on July 13, 2022. Under the Trump administration, efforts to address deep-rooted inequities for students of color are being cast as discriminatory against white students. The administration withheld more than $20 million from Chicago schools when the district refused to end its Black Student Success Program.
Nam Y. Huh/AP
Federal Interactive Feds Issue a Slimmed-Down Data Release on U.S. Schools
The Condition of Education highlights school enrollment, finance, and graduation data.
Image of blurry data and a school building.
Laura Baker/Education Week + Canva