Report: School Districts’ Perspectives on the Economic Stimulus Package

From NC Policy Watch

Friday, July 16th, 2010

By Staff
Teaching Jobs Saved in 2009-10 But Teacher Layoffs Loom for Next School Year

While nearly two-thirds of all school districts have used the federal stimulus money from the American Recovery and Reinvestment Act (ARRA) to save or create teaching jobs in the 2009-10 school year, as many as three-quarters of the nation's school districts expect to cut teaching jobs in 2010-11 due to budget decreases, according to a new survey of districts released this week by the Center on Education Policy (CEP).

The report, based on a nationally representative sample of district-level administrators surveyed in the spring of 2010, finds that nearly 95 percent of the nation's school districts have received or been promised funding from the State Fiscal Stabilization Fund (SFSF) authorized by ARRA. However, districts with funding declines are likely to face serious problems in the coming school year because much of the federal stabilization funding they have received has already been spent. An estimated 68 percent of school districts expect their total budgets, excluding ARRA funds, to decrease for school year 2010-11. As a result, 75 percent of districts that received SFSF funds expect to lay off teachers in 2010-11 to address their persistent budget shortfall.

SFSF funds helped to stabilize local budgets in 2009-10, though they were often insufficient to compensate for budget decreases not covered by the federal stimulus money. The report also finds that even with the ARRA funds, about 45 percent of districts with SFSF grants had to cut teaching staff in the 2009-10 school year.

"Unless additional recovery money is provided, the education jobs crisis that had been averted to some extent this year may emerge in full force in the coming school year, creating unprecedented shortages of classroom teachers that could undermine progress in school reform," said Jack Jennings, CEP's president and CEO.

CEP asked districts about actions they were undertaking to implement ARRA's four reform areas. CEP found that districts focused more aggressively on reform goals relating to improving teacher quality, bolstering standards and improving assessments, and participating in state longitudinal data systems than on improving low-performing schools. CEP suggests that this may be because districts have focused heavily on aligning their education reforms with state priorities and because not all districts have low-performing schools.

The majority of school districts have received or have been promised supplemental funding through ARRA for Title I of the Elementary and Secondary Education Act and for the Individuals with Disabilities Education Act (IDEA). More than half of districts receiving this funding are using the money to save or create jobs, as well as to purchase materials, technology, and equipment.

You can access the full report, at CEP's web site.

Based in Washington, D.C., the Center on Education Policy is a national, independent advocate for public education and for more effective public schools. The Center works to help Americans better understand the role of public education in a democracy and the need to improve the academic quality of public schools.