In response to the COVID-19 pandemic, the US government allocated funds to schools through the Elementary and Secondary School Emergency Relief (ESSER) fund. These funds were life rafts, designed to help schools weather the rough waters of the pandemic and its impacts on students including learning loss, mental health, and school safety.
With only 18 months left to spend these funds, districts must make budgetary decisions now that will have lasting effects on schools, students, and staff. Marguerite Roza highlights issues crucial to district financial planning in the months to come. To address immediate financial challenges and ensure a sunnier financial future, Roza recommends:
1. Assessing how ESSER investments have impacted students.
2. Evaluating how to soften the blow of the “fiscal cliff” and determine where cuts can be made with the least negative impact
3. Considering if enrollment supports current staffing and if increases driven by ESSER will remain financially viable.
4. Acting now to calculate if staffing reductions will be necessary to lessen the budget gap. Search for other options to reduce costs such as furloughs, adjusting benefits, or suspending salary increases.
5. Determining if any school closures are warranted.
6. Understanding when state intervention may be triggered by potential, pending insolvency.
While this planning may be painful, districts must take a proactive approach to their finances and make tough decisions now to avoid more significant financial suffering in the future.
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