Public schools headed for financial turbulence as COVID funding disappears and voters object to higher local taxes.
By Eileen Griffin
A Moody’s Ratings report indicates rough financial waters ahead for many public-school districts around the country.
Moody’s issued a warning to let school districts know they may be in dire financial trouble due to a number of issues affecting their financial security, The Lion reports.
One of the reasons schools are in this financial predicament is that they were given large amounts of taxpayer dollars during the COVID-19 pandemic. The federal government issued funds to address the crisis, but many schools used them for ongoing budget items.
The federal government sent $190 billion of taxpayer money to schools under a program called Elementary and Secondary School Emergency Relief (ESSER).
The U.S. Department of Education stated in its 2022 report on ESSER that these funds were authorized by Congress and deemed critical for re-opening public schools.
“Three years later, we are seeing the results of the Biden-Harris Administration’s successful implementation of ESSER, including more adults working in elementary and secondary schools than before the pandemic in support of students’ academic, mental health, and other needs; record expansions of tutoring, summer learning, and afterschool programs; and the greatest one-year gains in achievement nationwide since 2009,” states the report.
In 2022, half of the funds were used to help students recover from the learning loss. More than 6,000 educational agencies used the funds toward mental health programs. Funds were used for outreach to parents, tutoring assistance, and other support services.
While some of the funds were used for temporary services, many schools used the ESSER funds for permanent budget items, such as increased teacher salaries and new staff hires. Without any additional government assistance, those budget items are now unfunded.
In addition to the loss of COVID funds, many schools are losing regular funding as student enrollment declines.
Demand for educational freedom has been on the rise in the last few years, as Heartland Daily News has reported. Several states have implemented vouchers or education savings account (ESAs) plans to provide financial resources so parents can choose a school that fits their child’s needs.
While private schools have long been an option for some families, until the states began allowing tax dollars to move from government schools to private schools, it was difficult for some families to afford private school tuition. Now many more parents have the option to choose a private school.
Homeschooling has also become a growing trend as more families are looking for options to escape public schools, Reason magazine reports.
Across the nation, parents are choosing homeschooling. Before the pandemic, 2.8 percent of students between the ages of 5-17 were homeschooled. During the 2022-23 school year, 5.82 students were homeschooled.
“With COVID-19 and intrusive public health policies largely a bad memory, homeschooling continues as an increasingly popular practice as a matter of choice,” writes J.D. Tuccille for Reason.
Parents are now aware of the Leftist leanings of the taxpayer-funded education system and are objecting to the teaching of critical race theory (CRT) and radical sexual ideologies. Parents are concerned about their rights and the loss of authority in their children’s lives in states like California and Washington.
In Washington state, the legislature recently passed a bill declaring that all decisions about curricula will be the responsibility of the state Superintendent of Public Instruction. Local control, school board members, and parental rights will all be quashed as Olympia centralizes decision-making authority.
While public-school enrollment declines, staffing levels are increasing, The Lion reports. Teachers have also received pay increases, with some as high as 9 percent.
The increased expenses combined with the decreasing enrollment means that many schools will be looking for more funding either in the form of a bond or a tax increase.
Taxpayers are already frustrated with recent increases in property taxes, and they are more aware of the questionable use of funds and the dismal outcomes for public school education.
“That could mean a tax revolt that further weakens the financial condition and trust of the underperforming K-12 public school system nationwide,” John Ransom writes for The Lion.
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