Education Funding Report Roundup

Stimulus Saved Jobs, Report Concludes

By Alyson Klein — August 07, 2012 1 min read
  • Save to favorites
  • Print

The federal economic-stimulus program’s $100 billion in education aid largely met its goals of preserving or creating K-12 jobs and jump-starting education redesign efforts at the state level, according to a study from the Center on Education Policy.

Surveys of state and local officials by the Washington-based research organization looked at the impact of the 2009 American Recovery and Reinvestment Act, which poured emergency aid into the states to ease the effects of the Great Recession. The arra was followed in 2010 by the $10 billion Education Jobs Fund.

The surveys showed that 52 percent of districts with funding cuts offset them through the $48.5 billion State Fiscal Stabilization Fund, the part of the stimulus most closely focused on saving jobs and preventing budget cuts. In another 45 percent of those districts, the federal money plugged at least some budget holes.

Most districts—69 percent—used State Fiscal Stabilization Fund money to save or create jobs. The stimulus also provided new, one-time money for the two main federal formula programs—Title I grants for disadvantaged students and special education state grants. Districts used some of that money to save jobs, too, the CEP found.

But that didn’t mean there were no layoffs. During the 2010-11 school year, about 85 percent of districts with budget decreases cut staff positions, including teaching jobs, the study says.

Related Tags:

A version of this article appeared in the August 08, 2012 edition of Education Week as Study: K-12 Stimulus Saved and Created Jobs

Events

School Climate & Safety Webinar Strategies for Improving School Climate and Safety
Discover strategies that K-12 districts have utilized inside and outside the classroom to establish a positive school climate.
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
Artificial Intelligence Webinar
Decision Time: The Future of Teaching and Learning in the AI Era
The AI revolution is already here. Will it strengthen instruction or set it back? Join us to explore the future of teaching and learning.
Content provided by HMH
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
School & District Management Webinar
Stop the Drop: Turn Communication Into an Enrollment Booster
Turn everyday communication with families into powerful PR that builds trust, boosts reputation, and drives enrollment.
Content provided by TalkingPoints

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

Education Funding Rebuking Trump, Congress Moves to Maintain Most Federal Education Funding
Funding for key programs like Title I and IDEA are on track to remain level year over year.
8 min read
Photo collage of U.S. Capitol building and currency.
iStock
Education Funding In Trump's First Year, At Least $12 Billion in School Funding Disruptions
The administration's cuts to schools came through the Education Department and other agencies.
9 min read
Education Funding Schools Brace for Mid-Year Cuts as 'Big, Beautiful Bill' Changes Begin
State decisions on incorporating federal tax cuts into their own tax codes could strain school budgets.
7 min read
President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House on July 4, 2025, in Washington.
President Donald Trump signs his signature bill of tax breaks and spending cuts, the One Big Beautiful Bill Act, at the White House on July 4, 2025, in Washington. States are considering whether to incorporate the tax changes into their own tax codes, which will results in lower state revenue collections that could strain school budgets.
Evan Vucci/AP
Education Funding Educator Layoffs Loom as Canceled Community Schools Grants Remain in Limbo
Three legal challenges and bipartisan backlash have followed the Trump administration's funding cuts.
5 min read
Stephon Thompson, an administrator at Stevenson Elementary School, directs students through the doors at the beginning of the school day in Southfield, Mich., on Feb. 28, 2024.
Stephon Thompson directs students through the doors at the beginning of the school day at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024. The school has added on-site social services in recent years as a community school. The Trump administration has recently discontinued 19 federal grants that help schools become local service hubs for students and their families.
Samuel Trotter for Education Week