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, as well as responsible adoption.
Content provided by Lightspeed Systems
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
Reading & Literacy Webinar
Unlocking Success for Struggling Adolescent Readers
The Science of Reading transformed K-3 literacy. Now it's time to extend that focus to students in grades 6 through 12.
Content provided by STARI
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.

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 Trump Bypasses Congress and Slashes Hundreds of Education Grants
More than 200 ongoing projects have seen their remaining grant funding canceled in recent weeks.
10 min read
Rolled American One Hundred Dollar bills and handsaw cutting the bottom out from under on orange background.
iStock/Getty
Education Funding Trump Admin. Cancels Dozens More Grants, Hitting Civics, Arts, and Higher Ed.
The multi-year initiatives are abruptly losing funding midway through their grant periods.
10 min read
Students in a seventh grade civics class listen to teacher Ella Pillitteri at A.D. Henderson School in Boca Raton, Fla. on April 16, 2024.
Students in a 7th grade civics class listen to teacher Ella Pillitteri at A.D. Henderson School in Boca Raton, Fla. on April 16, 2024. The Trump administration's grant cancellations have hit ongoing programs that promote civics, arts, and literacy education, and more.
Rebecca Blackwell/AP
Education Funding How Efforts to Fund Schools More Equitably Actually Worsened Racial Inequality
Researchers examined three decades of school finance reforms in 40 states.
2 min read
Vector illustration of two hands pulling apart money and it tears in unequal parts.
iStock/Getty
Education Funding Your Guide to the Evolving Federal Budget and What It Means for Schools
Lawmakers have a few weeks to agree on a new budget and an approach to Trump's funding uncertainty.
9 min read
The Capitol Building in Washington on Sept. 1, 2025. Congress returned from August recess this week to tackle several high profile hearings and face a September 30 deadline to fund the federal government.
The Capitol Building in Washington on Sept. 1, 2025. Congress faces a deadline within weeks to fund the federal government for the fiscal year that starts Oct. 1. President Donald Trump has proposed big changes for school funding that lawmakers must decide whether to accept, reject, or modify.
Aaron Schwartz/SIPA USA via AP