Congress Need Not Panic: Debunking Fears of a 'Fiscal Cliff' as School Districts Face ESSER Spending Deadline. Issue Brief. No. 5364

Heritage Foundation. 214 Massachusetts Avenue NE, Washington, DC 20002-4999. Tel: 202-546-4400; Fax: 202-546-8328; e-mail: info@heritage.org; Web site: http://www.heritage.org

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Emergency Programs; Elementary Secondary Education; Federal Aid; Grants; Pandemics; COVID-19; Educational Finance; Financial Exigency; Resource Allocation; Distance Education; Public Schools; School Districts; School District Wealth; School District Spending; Taxes; Budgets; School Personnel; Personnel Selection

This brief explains why concerns over an impending "fiscal cliff" for public school districts as federal Elementary and Secondary School Emergency Relief funds near their expiration are misplaced. Due in part to federal pandemic aid, most state budgets are flush with cash, with record-high rainy-day funds, positioning them to absorb any future financial challenges. From extra federal aid, public school districts completed long-term projects and also bolstered reserves. At the same time districts benefitted from rising home values. Districts now have an opportunity to streamline non-essential administrative roles and optimize existing resources for students and teachers--especially given that most districts are serving fewer students. School districts are well equipped to maintain financial stability without additional federal taxpayer spending.

ERIC

2025

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