(WSJ) The Pandemic Cash That Bolstered School Budgets Is About to Run Out

Schools across the country are preparing to see their budgets shift from flush to strained as billions of pandemic aid runs out in less than a year, putting at risk staffing and programs added with Covid-relief funds.

The 2023-24 school year represents the last full year in which districts can spend down what remains of the $180 billion in federal Covid-19 aid. High-poverty districts typically received more emergency relief, so now face steeper cuts as the money runs out.

In New York City, which received $7 billion in education aid, the state comptroller projects that the schools will run short of money to continue to fund prekindergarten expansion and a widely attended summer program. In Los Angeles, the district is funding more than 2,000 staff positions this year with the federal aid, while its budget office is warning of a “structural deficit.”

At the moment, schools largely remain flush. But they are barreling toward a fiscal cliff at the same time students remain behind academically. That means officials are attempting a high-stakes balancing act: spending the remaining Covid-relief funds effectively, while trying to limit disruptive budget cuts in later years.

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Posted in * Culture-Watch, * Economics, Politics, Budget, Children, Economy, Education, The U.S. Government