Dive Brief:
-
Thirteen states had 50% or more of their K-12 district-level American Rescue Plan funds left to spend as of January, according to a report from the Center on Budget and Policy Priorities.
-
With the pending Sept. 30 deadline to obligate ARP funds, underspending is a concern in some areas, education economists said. However, much attention is centered on the financial stability of high-poverty school districts once the federal COVID-19 emergency funds expire.
-
According to the CBPP report, there are 15 states where total Elementary and Secondary School Emergency Relief funds equaled more than 8% of education funding, and where at least 30% of students attend schools in high-poverty districts.
Dive Insight:
The expiration of ESSER monies is expected to be more acute for high-poverty districts, because those districts typically received larger allocations of the federal aid.
Those high-poverty districts are more likely to have higher populations of students of color and marginalized students. They will also likely have a harder time transitioning to more typical budget years, since it is more difficult to generate local property tax revenue, according to CBPP.
"Pulling back on these investments could lead to deeply negative impacts on student achievement and equity, particularly in low-income communities where there are fewer alternatives to school-based supports," the report said.
A recent analysis from ERS, an education research and strategy nonprofit, found that three states — Florida, Texas and Ohio — entered fiscal year 2024 with an expected deficit of 10% to 30% of their FY 2019 spending levels for their high-poverty districts.
ERS recommended six practices districts and states can take to lessen the risks for underresourced school systems, such as redesigning school schedules and staffing models to meet students' needs.
Several education-focused organizations have advocated for budgeting practices that address inequities. The Education Trust, a nonprofit seeking to end racial and economic barriers in education, has a guide for district and state education leaders to help sustain ESSER-era investments and accountability practices to ensure populations most impacted by the pandemic aren't further harmed by the expiration of the federal aid.
The Council of Chief State School Officers has compiled examples from states that are planning sustained investments, including equity-focused practices.
U.S. Department of Education guidance from January said states interested in requesting an extension for ARP spending on behalf of themselves or for their districts will need to explain how doing so would contribute to accelerated learning, including for students with the greatest needs. States and districts granted extensions would have until March 2026 to deplete their ARP funds.
