Education Funding Report Roundup

Study: Districts’ Recession Recovery May Take Years

By Sean Cavanagh — October 12, 2010 1 min read
  • Save to favorites
  • Print

School districts around the country are laying off teachers, cutting instructional programs, and eliminating student activities as they absorb the lingering effects of the economic recession, a new report says.

And while the recession is said to have ended officially in 2009, it could take up to a decade for district budgets to recover to pre-recession funding levels, according to the report. It was released last week by the Center for Public Education, which is a part of the Alexandria, Va.-based National Schools Boards Association.

The report says the reason for the slow return to fiscal health is that district budgets are likely to suffer from lagging home prices, thin state budgets, and reduced federal stimulus funding, which is expected to run out by 2011. States are also likely to have to cover higher costs in employee-retirement programs, which are underfunded, among other financial burdens.

Another problem area for districts: They are complying with the “underfunded mandates” of the Individuals with Disabilities Education Act and the No Child Left Behind Act, as well as with their own states’ academic requirements, the center contends.

The report draws from a number of sources, including a March 2010 survey from the American Association of School Administrators. That survey found that 78 percent of districts said they planned to cut budgets during the 2010-11 school year, up from 64 percent in 2009-10.

That information was collected before Congress approved the Education Jobs Fund, which provided $10 billion in aid to help save school positions. In a conference call with reporters, Jim Hull, a senior policy analyst at the center, said that while the jobs fund will help districts, the long-term outlook remains bleak.

Related Tags:

A version of this article appeared in the October 13, 2010 edition of Education Week as For Districts, Recession Recovery May Be Slow

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
Artificial Intelligence Webinar
Managing AI in Schools: Practical Strategies for Districts
How should districts govern AI in schools? Learn practical strategies for policies, safety, transparency, and responsible adoption.
Content provided by Lightspeed Systems
Jobs Virtual Career Fair for Teachers and K-12 Staff
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
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
Student Absenteeism Webinar
Turning Attendance Data Into Family Action
This California district cut chronic absenteeism in half. Learn how they used insight and early action to reach families and change outcomes.
Content provided by SchoolStatus

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 School Mental Health Projects Canceled by Trump Might Still Survive
The end of funding could still be days away, but a new court order offers some hope for grantees.
6 min read
Reducing, removing or overcoming financial barriers, financial concept : US dollar bag on a maze puzzle.
William Potter/iStock
Education Funding 'A Gut Punch’: What Trump’s New $168 Million Cut Means for Community Schools
School districts in 11 states will imminently lose federal funds that help them cover staff salaries.
10 min read
Genesis Olivio and her daughter Arlette, 2, read a book together in a room within the community hub at John H. Amesse Elementary School on March 13, 2024 in Denver. Denver Public Schools has six community hubs across the district that have serviced 3,000 new students since October 2023. Each community hub has different resources for families and students catering to what the community needs.
Genesis Olivio and daughter Arlette, 2, read a book in one of Denver Public Schools' community hubs in March 2024. The community hubs, which offer food pantries, GED classes, and other services, are similar to what schools across the country have developed with the help of federal Community Schools grants, many of which the U.S. Department of Education has prematurely terminated.
Rebecca Slezak For Education Week
Education Funding Federal Funds for Community Schools Fall Victim to a New Round of Trump Cuts
The latest round of grant cuts hits a program that helps schools provide more social services on site.
6 min read
Parents attend a basic facts bee at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024.
Parents attend a "basic facts" bee at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024. The school has been a recipient of a federal Full-Services Community Schools grant that has allowed it to add an on-site health clinic, a parent-resource room, a therapy dog, and other services parents would otherwise have to seek elsewhere.
Samuel Trotter for Education Week
Education Funding Education Week's 2025 Word of the Year Is ...
Trump's efforts to reshape the federal role in education caused uncertainty for schools.
6 min read
2 silhouetted figures dismantle the Department of Education Seal and carry away the parts.
Vanessa Solis/Education Week + DigitalVision Vectors/Getty