Financial Turmoil: The new federal aid package - Edunomics ...
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Financial Turmoil:
The new federal aid package
Jan. 5, 2021; Revised Jan. 6, 2021
Marguerite Roza
Edunomics Lab, Georgetown University
MR1170@georgetown.edu
@MargueriteRoza
Hannah Jarmolowski
HJ254@georgetown.edu
Slides available at edunomicslab.org
©2021 Edunomics Lab, Georgetown University
New law (Consolidated Appropriations Act, 2021)
COVID Relief
2021 Omnibus Annual Fed.
Spending Bill $1.4T + $900 B
Relevant portions for K-12
K-12 got slightly more than prior yr $ ESSER = $54B GEER = $4B
Governors’ Emerg.
Title I = $16.5B = up 1.4%
K-12 stabilization fund Ed Relief
$10B for Child
IDEA = $14.1B = up 1.3% Care
Slight increases to:
Title II, IV Child care = $85B
After school programs = up 7.5%
$3.2B for
Career and tech broadband
Head Start
$250M Head Start $818M BIE and outlying areas
©2021 Edunomics Lab, Georgetown University
K-12 portions of 2021 Federal COVID Relief Package
ESSER = $54B ~ $1000pp GEER = $4B
$1.25B for $2.75B for
SEA Governor’s
• 90% allocated to LEAs via Title I formula. non-public schools
discretion discretion for (no scholarships)
over 9.5% K-12 & HE
• LEAs can multiply CARES/ESSER allocation by 4 to get new sum.*
• It’s equivalent to 3X typical Title I part A.
• LEAs not eligible for Title I get none of this portion.
$10B for Child Care and
Development Block Grant
• Broad flexibility in use of funds (NOT subject to Title I rules). Program
• Emphasis on “addressing learning loss.”
• Must be spent by 9/2022, so funds can be stretched across $3.2B for emergency
three school years. Update: Must be spent by 9/2023**, so 0.5% = SEA broadband for families
funds can be stretched across four school years. admin
$250M Head Start $818M BIE and outlying areas
*ESSER estimates available via Whiteboard Advisors: https://public.tableau.com/views/HR133ESSERStimulusAllocations/54BESSERLEAEstimates?:showVizHome=n&:embed=y#2
**The Tydings Amendment allows for this one-year extension of what is written in the law.
Federal ESSER fact sheet: https://oese.ed.gov/files/2021/01/Final_ESSERII_Factsheet_1.5.21.pdf
©2021 Edunomics Lab, Georgetown UniversityK-12 portions of 2021 Federal COVID Relief Package
ESSER = $54B ~ $1000pp GEER = $4B
$1.25B for $2.75B for
With CARES, several SEAs SEA Governor’s non-public schools
• 90% allocated to LEAs via Title I formula
allocated some discretion discretion for (no scholarships)
discretionary $ to LEAs over 9.5% K-12 & HE
• LEAs can multiply CARES/ESSER allocation
that don’tby
get4 Title
to getI new sum
• It’s equivalent to 3X typical Title I part A. Allocations to private
• LEAs not eligible for Title I get none of this portion.
$10Bschools
for Childmust be made
Care and
or funding
No dedicated Development Blockreturned.
Grant
• Significant
Broad flexibility in use of funds (NOT subject to TitleSEA admin
I rules). Program
E-rate $, but
• Emphasis on “addressing learning loss.” funding = 4-10% increase.
flex $ available
SEAs: beware of an
• Must be spent by 9/2022, so funds can beagency funding
stretched cliff.
across
$3.2B for emergency
three school years. Update: Must be spent by 9/2023*, so
0.5% = SEA broadband for families
funds can be stretched across four school years. admin
$250M Headstart $818M BIA and outlying areas
*The Tydings Amendment allows for this one-year extension of what is written in the law.
Federal ESSER fact sheet: https://oese.ed.gov/files/2021/01/Final_ESSERII_Factsheet_1.5.21.pdf
©2021 Edunomics Lab, Georgetown UniversityWill we have a funding cliff?
Leaders will
want to pace
Federal $ enables districts to maintain
cost structure, but eventually runs out themselves
and plan
Funding cliffs ahead for
e t rend are typical
tate Rev
en u when federal
2 S when federal
l K-1 aid ends.
Typica $ fi l l s gaps relief aid stops
F ed nues (Update: Districts
R ev e
COVID-impacted K-12 State can stretch funds to
2023.)
2020 2021 2022 2023 2024
Teacher salaries stay flat
Furloughs Few new investments
COVID HITS! / layoffs
Districts rebuild reserves
©2021 Edunomics Lab, Georgetown UniversityBecause the funds New ESSER
New ESSER
$1,695pp
=$439pp
flow via the Title I
Of two NY
formula, higher- districts,
poverty districts will $6,585
Poughkeepsie
has higher $14,969
generally receive poverty levels
so will get
more ESSER $ per much more
$20,340
ESSER $ Per
Pupil
federal aid per $20,896
pupil. pp
pupil pp
State $ Per
Pupil
That said, higher- 4046 Local $ Per
poverty districts are $13,755
students
73% FRL
Pupil
5210 students
more vulnerable to 37% FRL
$5,927
cuts in state funding. S. Colonie Poughkeepsie
5,210 students 4,046 students
37% FRL 73% FRL
ESSER estimates from Whiteboard Advisors: https://public.tableau.com/views/HR133ESSERStimulusAllocations/54BESSERLEAEstimates?:showVizHome=n&:embed=y#2
©2021 Edunomics Lab, Georgetown UniversityNew ESSER Despite both
But the Title I $2,832 pp being high-
New ESSER
formula has its poverty CA
$1,437 pp
districts,
quirks. Fresno will get
nearly double
the federal aid
Larger districts Total Per-Pupil per pupil
$ (FY19) Before
receive more ESSER
Title I $ per ESSER $ Per $13,641
$13,641 pp $13,325 pp
Pupil
student, even
among districts
with similar Fresno Unified Dos Palos Oro
81,781 students Unified
poverty levels. 2,527 students
87% FRL
90% FRL
ESSER estimates from Whiteboard Advisors: https://public.tableau.com/views/HR133ESSERStimulusAllocations/54BESSERLEAEstimates?:showVizHome=n&:embed=y#2
©2021 Edunomics Lab, Georgetown UniversityIs the federal aid enough to cover the gaps in state funds?
ME
It generally depends on the state.
WA
MT ND
VT
NH Delaware = 1%
MA
Aid = ~ 8% boost for typical district. gap in 2021
MN NY
OR
RI
ID
SD
WI
MI CT revenues
WY PA NJ
DE
IA MD
OH
In most states, revenue
NE Washington D.C.
IL IN
NV WV VA
UT
trends are still unfolding.
CA CO KY
KS MO
NC
TN
SC
Some states are more/ less
OK AR
AZ NM
GA
AL
MS
dependent on state $ (vs
AK
Hawai’i = 23% TX LA
FL
gap in 2021
revenues HI
local) than others.
Update: State-by-state SEA ESSER allocation table available: https://oese.ed.gov/files/2021/01/Final_ESSERII_Methodology_Table_1.5.21.pdf
©2021 Edunomics Lab, Georgetown UniversityQuestions?
How should SEAs
allocate the 9.5%?
Since states didn’t get funds
to backfill their budgets, can
COULD START WITH
DATA: Comparing
Does the
they cut K-12 and backfill state/local $ in districts district
vs poverty, etc. and use
with federal K-12 aid? the 9.5% to address have to be
problematic gaps. in-person
To a point. ”Maintenance of to use the
Effort” prohibits cutting K-12
more than other areas of state money?
budget.
No
©2021 Edunomics Lab, Georgetown UniversityQuestions?
Can districts use it Yes, but it won’t go very far.
Is it enough for COVID testing? At ~$125 per test*, and 2
tests pp/week, testing costs =
to cover PPE? $1000pp per month.
Yes. PPE costs are
typically projected What if my district can’t spend it
at ~ $250 pp.*
all by Sept. 2022?
Update: Sept, 2023 is the deadline.
It goes back to the feds, though $ is highly flexible Note too that districts now have ‘til
(instruction, summer services, contracts, tutoring, 12/2021 9/2022** to spend CARES,
ventilation, etc.), and can be stretched across 3 school years. so may integrate those spending
plans.
* See CDC: https://www.cdc.gov/mmwr/volumes/69/wr/mm6950e1.htm?s_cid=mm6950e1_w
** Federal ESSER fact sheet: https://oese.ed.gov/files/2021/01/Final_ESSERII_Factsheet_1.5.21.pdf
©2021 Edunomics Lab, Georgetown UniversityQuestions? Avoid recurring obligations
How do districts (raises, new hires).
How should my avert fiscal cliff? Seek one-time investments.
If labor is needed, use contract
labor or stipends for current
district spend it? staff.
!!!
Will districts be
What will help students?
Which students suffering learning judged in rear
You betcha! There are robust
loss and by how much?
What options avert a fiscal cliff?
view mirror for reporting requirements and
how they one-time sums of this size
draw lots of attention.
spend it? Reporting emphasis will be on
how money addressed
learning loss.
*https://www.healthsystemtracker.org/brief/covid-19-test-prices-and-payment-policy/
©2021 Edunomics Lab, Georgetown UniversityThis K-12 financial story is far from over! Join our next 30-minute webinar:
Impacts of enrollment shifts and learning loss
Q&A on district finances
Tuesday, January 19, 10am PT / 1pm ET
http://bit.ly/EdLabJan19
Note: Q&A is off the record unless otherwise stated
Marguerite Roza
Edunomics Lab, Georgetown University
MR1170@georgetown.edu
@MargueriteRoza
Hannah Jarmolowski
HJ254@georgetown.edu
Visit EdunomicsLab.org for resources on
how financial turmoil is impacting K-12
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