Schools Continue to Struggle with Budget Cuts

Today the American Association of School Administrators (AASA) released its seventh report based on surveys of school administrators and the effect the economic downturn has had on school operations, employment, and other aspects. This report, titled “A Cliff Hanger: How America’s Public Schools Continue to Feel the Impact of the Economic Downturn,” focuses on the difficult choices schools will have to make in the 2010-11 school year given the on-going funding cuts occurring at the state and local level. Federal stimulus funds are slated to expire in 2011, presumably because legislators expected state and local revenues to bounce back enough by then to provide ample funding for education. But reports from school administrators suggest that 2010-11 is going to be the toughest financial year yet, forcing them to make some difficult sacrifices.

First and foremost, school administrators report that state and local budget cuts are expected to be larger in 2010-2011 than they were in 2009-10. Budget cuts of 10 percent or more from the prior year levels are likely in nearly half of responding districts. Additionally, only 9 percent of administrators reported that American Recovery and Reinvestment Act (ARRA) funds would be substantial enough to prevent cuts from 2009-10 to 2010-11.

These looming cuts and insufficient stimulus funds are forcing administrators to cut corners in a wide variety of ways. More than one-third of administrators may institute personnel furloughs and more than half are considering laying off personnel in 2010-11. In both cases, significantly more administrators reported resorting to these methods in 2010-11 than 2009-10. This finding suggests that ARRA education funds, once considered essential to maintaining education jobs, are losing their potency.

The types of jobs that are slated to be cut have also changed since 2009-10. Almost twice as many administrators reported that they will cut core subject classroom teachers in 2010-11 than 2009-10 (61 percent versus 37 percent). The number reporting layoffs for special education teachers and teacher aides or assistants also nearly doubled over the same time frame. While some education stakeholders believe that streamlining school employment roles and cutting out wasteful positions can make public schools more efficient and effective, there appears to be a point of diminishing returns to that strategy. Once budget cuts begin to affect highly qualified classroom instructors, who are responsible for students’ academic outcomes, this streamlining could undermine student achievement.

But the budget crunch isn’t just affecting teachers and other school employees; it is dramatically changing the services schools provide. Twenty-six percent of administrators reported that they will increase class sizes and 50 percent reported that they will reduce extra-curricular activity offerings in 2010-11. More than half of responding administrators also reported that they will cut elective courses in the coming school year and 13 percent are considering moving to a four-day school week. Drastic measures like four-day weeks and eliminating extra-curricular activities have wide ranging effects. They create challenges for working parents who will need to find child-care and force students to go elsewhere for after-school activities. While it’s impossible to estimate the repercussions of these changes now, they are sure to be significant for students and their families.

In all, the AASA report paints a dismal picture of school district finances across the country. While none of these budgeting decisions are set in stone, the fact that administrators are considering them at all suggests that more difficult decisions are likely to lie ahead for schools if the budget situation does not begin to improve. Until then, school administrators will likely look to the federal government for support, particularly as the ARRA funds run out completely.

A few months ago, the U.S. House of Representatives passed a $23 billion fund that would help support public education jobs that was ultimately rejected by the Senate. Will that Education Jobs Funds reappear as school finances continue to flounder? School administrators across the country certainly hope so.