The impending expiration of the federal Elementary and Secondary School Emergency Relief (ESSER) funds by September 2024 poses one of the largest recent financial challenges states and school districts face. ESSER funds, which were a crucial source of education financing during the pandemic, must be committed by this deadline or risk being lost. Although these funds can be used until December 2024, or potentially until March 2026, depending on extensions, the lapse of these funds could lead to financial shortfalls for many school districts – particularly affecting those that have not yet utilized their allocated resources. The risk of losing unused funds underscores the urgent need for school districts to allocate and spend these resources effectively.
The financial strain from the expiration of ESSER funds is compounded by several factors. These include state tax cuts, diversion of resources to school vouchers, inadequate school funding formulas, increased costs, and an uncertain revenue outlook. These factors could lead to disastrous consequences for students and schools. Teacher layoffs, school closures, and loss of essential programs are possible. The most significant impact will be felt by low-income districts, which received larger allocations under the Title I funding formula.
State lawmakers are encouraged to prioritize education funding in their legislative sessions to mitigate the potential damage caused by the loss of ESSER funds. This may involve resisting further tax cuts and exploring opportunities to raise additional revenue. ESSER funds provided a historic infusion of nearly $200 billion into K-12 education. The fund addressed pandemic-related challenges like school reopening, mental health needs, and learning loss. The sudden expiration of these funds can create a “fiscal cliff” for many school districts, with the potential for severe negative impacts on student achievement and equity. This scenario schools are facing underscores educators’ push for sustained investment in public education over tax cuts or school vouchers.
Some educational technology companies are helping schools mitigate this lack of funding by offering discounted pricing models. One such company, Link-Systems International Inc. The creator of the on-demand live tutoring platform NetTutor, has revamped its pricing structure to better work with schools that are realigning their priorities amidst diminishing resources.
“To support continued access to online tutoring, companies like ours are working with our partners to meet the needs of their students, district goals, and their budget,” said Vincent Forese, president of Link-Systems International.
Photo of Vincent Forese, President of Link Systems International
As the expiration of the ESSER funds looms, schools across the nation are grappling with how to sustain the critical programs and staffing levels that these federal relief dollars have supported. Many districts had used ESSER funds to address pandemic-induced academic setbacks, often hiring new staff and implementing various educational programs. However, with the largest round of ESSER funds set to expire after the current school year, districts face significant financial challenges.
According to a survey by the EdWeek Research Center, nearly half of the districts interviewed plan to rely on state funds. Over a third anticipate turning to local tax revenue and federal Title I funds. A rare few districts are fortunate enough to have access to private donations to fill the financial void left by ESSER. Despite these efforts, the survey indicates that 25 percent of districts have no alternative funding lined up, foreshadowing potential staff layoffs and program cuts. Some districts now face the daunting reality of having no replacement funds, highlighting the urgent need for sustainable funding solutions beyond ESSER.
