Even though experts “warned school districts in advance,” public schools across America are bracing for a financial collapse of their own making.
Specifically, $24 billion in education labor costs hang in the balance due to Democrats’ reckless pandemic-era spending and sagging student enrollment.
The looming “fiscal cliff” threatens 250,000 education jobs and highlights how government officials squandered temporary COVID relief funds on permanent expenses.
Education finance expert Marguerite Roza from Georgetown University had raised the alarm to school administrators about this inevitable crisis.
However, many districts ignored fiscal responsibility in favor of expanding their programs and payrolls.
“We actually warned school districts in advance, be careful about this money, because if you take on recurring commitments, financial commitments, you’re going to really find that in 2025, we will be calling it the bloodletting,” Roza declared.
The financial disaster facing America’s public schools stems directly from poor planning and wasteful spending of the Elementary and Secondary School Emergency Relief funds.
Said funds provided billions in taxpayer dollars during the COVID pandemic.
These federal handouts completely dried up after September 2024, leaving school districts scrambling to cover costs they had committed to in the long term.
Public school enrollment has declined steadily since 2020, with families increasingly opting for alternatives such as homeschooling, private education, and charter schools.
California has been hit particularly hard. Significant enrollment drops have been attributed to lower birth rates and families fleeing to states with lower taxes.
The combination of fewer students and bloated staffing creates a perfect storm for budget disasters.
Each student who leaves takes state funding with them. Still, many districts hired additional personnel during the pandemic with temporary funds.
Now, taxpayers will likely be asked to bail out these mismanaged institutions through higher property taxes or state funding increases.
While some fiscally responsible districts managed staffing through attrition or early retirement, others recklessly expanded without planning for the inevitable end of the COVID gravy train.
“It’s like if a family wins the lottery and says, ‘Wow, I have $1 million this year. I should buy a new house that has a $1 million mortgage.’ There’s no way you’re going to be able to pay that next year. You’re just using that money for this year,” Roza explained.
Even the education establishment admits they have backed themselves into a corner.
Mike Fine from the California-based Fiscal Crisis and Management Assistance Team acknowledged the painful reality facing educators who expanded their operations without sustainable funding.
Parents who have already lost confidence in public education due to controversial curriculum choices may find this financial mismanagement the final straw, leading them to seek alternatives for their children’s education.
