AASA Study Confirms Impact of the Economic Downturn on Public Schools

When it became apparent in 2008 that an economic downturn was upon us the American Association of School Administrators (AASA) took the lead in studying and analyzing the impact that changes in economic conditions would have upon school divisions nationwide. A study was conducted on the economic downturn that revealed measures were underway in most school divisions in response to shrinking budgets. The study also suggested that the economic downturn could threaten gains in student achievement and progress in narrowing the achievement gap and the capacity of schools to deliver essential services.
Two additional studies were conducted by AASA in December and in January 2009. These new surveys analyzed the potential impact of the continued economic downturn on schools nationwide. One of the revealing areas of interest was the fact that almost three-quarters of school leaders planned to eliminate jobs in the 2009-2010 school year. The reality that many schools would have to operate with fewer academic instructors, support staff and student services staff was a major concern.
The latest surveys indicate that the adjustments administrators made prior to the 2008-2009 school year were moderate when compared to the cuts schools are being forced to consider for the 2009-2010 school year. Some summary results are listed below:
• In the recent studies, 75 per cent of respondents described their districts as “inadequately funded”.
• A quarter indicated they were facing short-term borrowing to meet payroll and accounts payable, with two percent facing non-performance on bond repayment schedules and one percent facing insolvency.
• The top five “high priority” items were: classroom technology, school modernization, safety and security measures, connectivity, and professional development.
• The top five “priority” uses were: classroom equipment/supplies, software, supportive technology for students with needs, professional development, and textbooks.
• The top five “low priority” items were: health equipment, new career/technical programs, art education equipment, physical education equipment, and music education equipment.
Education represents a large share of the states’ general fund budgets. With state deficits expected to total more than $350 billion over the next two years, it will be very difficult for states to avoid damaging cuts to education as the recession continues. While the $100 billion included for education in the American Recovery and Reinvestment Act should help backfill some of the identified budget cuts, it is unlikely that the federal money will be enough to allow states and schools to completely reverse the proposed cuts in educational spending. The temptation for state governments and even local funding agencies to further reduce educational funding by using ARRA funds to bolster funding categories for other services (roads, building projects, social services, tax relief, etc.) presents a daunting challenge for school districts depending upon additional funding to survive the economic downturn.
All local school divisions must continue to articulate their needs to the local and state funding authorities in order to survive the immediate impact of reduced funding for the next fiscal year or two. The real challenge may be to plan for the 2010-2011 budget cycle that may be absent any additional federal stimulus funding and necessitate even deeper cuts to local school budgets. The immediate future for public educational funding will be at best difficult times for public education. Let’s hope we can avoid a catastrophic event for the sake of the children we serve.