K-12 Financial Landscape

Graph showing how education budget moves

Here comes “The Big Shrink”

Districts across the country are heading into an era of shrinking enrollment resulting in lower revenues. With labor costs consuming a large share of most budgets, leaders won’t be able to avoid tough choices. Done right, shrinking can be a chance to build smaller, stronger, and more effective school systems for the students who remain.

Featured Research, Data, & Analysis

A Financial Anaysis of Public Funds Invested Via ESAs, Vouchers & Tax Credits

Public investment in private options is on the rise. What are the financial implications? This real-time financial analysis looks at FY24-25 state funding to quantify how many public dollars are flowing through ESAs, vouchers, and tax credit scholarships right now.

No Silver School-Spending Bullets

ESSER funds came in the form of a blank check. Where we have data, we find that how a district spent its funds doesn’t explain differences in test score gains. The ESSER experiment reconfirms the notion that converting dollars to outcomes is so much messier than following a simple spending recipe. So how can school systems continue to drive learning gains as ESSER ends? We’ve been analyzing the data and engaging with leaders to understand how systems might get more return on the dollars they have.

In K-12 the ESSER hangover is here

In this analysis published by Brookings, Marguerite Roza shows how after the ESSER fueled hiring spree, districts are struggling to afford their larger, better-paid workforces, and students may be left with less effective teachers.

New Forms of Teacher Pay Take Hold

Research has long documented that a strong teacher can have profound effects on student math and reading scores. And yet, school systems have tended to focus on quantity over quality. But prioritizing teacher quality is possible. And it doesn’t mean throwing out the traditional pay scale or resorting to unpopular merit bonuses. A few school systems are paving the way.

Leading district finances during a time of financial turmoil

We’ve compiled resources to help district leaders and their finance teams navigate the opportunities and challenges ahead.

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