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Layoffs on the rise: Budget deficits hit US public schools as COVID relief fades

Apr 10

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As federal COVID relief funds dwindle, public school districts across the United States are contending with budget deficits, prompting layoffs of teachers and staff. According to David Goldberg, president of the California Teachers Association, approximately 1,600 California educators and school personnel recently received layoff notices — a substantial surge compared to previous years, as reported by The Orange County Register.

In Fort Worth, Texas, 133 employees were handed pink slips amidst a looming $44 million budget shortfall for the Fort Worth Independent School District in the upcoming year. The layoffs come after the district cut 200 positions for the 2022-2023 academic year due to an $80 million deficit.

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Meanwhile, in Howard County, Maryland, the local school district anticipates slashing 348 jobs due to a budget shortfall of $103 million.

Several common factors contribute to the implementation of layoffs by school boards. Firstly, with the cessation of federal COVID funds, some districts, which had been operating at budgets inflated by up to 40% before the pandemic, now face stark realities. Secondly, public schools nationwide have witnessed a decline in student enrollment, directly affecting funding formulas.

According to The Wall Street Journal, student enrollment in Fort Worth ISD dropped by 10% between 2019 and 2021, exacerbating financial strains.

Throughout the pandemic, some parents opted to withdraw their children from public schools, either for homeschooling or enrollment in private or charter institutions.

The influx of students into public schools could potentially bolster state funding.

As early as 2023, school finance experts had warned of an impending “fiscal cliff” for certain districts as COVID relief funds dwindled.

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[LAUREN TAYLOR]

PUBLIC SCHOOL DISTRICTS ACROSS THE COUNTRY ARE FACING BUDGET DEFICITS – AS COVID-RELIEF FUNDS DRY UP

AND WITHOUT THAT ADDITIONAL FUNDING,. SCHOOL BOARDS FROM COAST TO COAST ARE HANDING PINK SLIPS TO TEACHERS AND STAFF.

CALIFORNIA’S TEACHERS ASSOCIATION PRESIDENT – DAVID GOLDBERG – TOLD THE ORANGE COUNTY REGISTER – THAT ABOUT 16-HUNDRED CALIFORNIA TEACHERS AND SCHOOL STAFF RECEIVED LAYOFF NOTICES IN THE LAST COUPLE OF WEEKS – A “MASSIVE INCREASE” FROM PREVIOUS YEARS.

IN FORT WORTH, TEXAS – 133 EMPLOYEES RECEIVED NOTICES – AS FORT WORTH INDEPENDENT SCHOOL DISTRICT FACES A $44 MILLION DOLLARS SHORTFALL NEXT YEAR.

FORT WORTH ISD ALSO SLASHED 200 JOBS FOR THE 2022-2023 SCHOOL YEAR AFTER EXPERIENCING AN $80 MILLION DOLLAR DEFICIT.

IN HOWARD COUNTY, MARYLAND – THE SCHOOL DISTRICT ANNOUNCED 348 JOBS WILL LIKELY NEED TO BE CUT – AS THE DISTRICT FACES A BUDGET SHORTFALL OF $103 MILLION DOLLARS.

THERE ARE A FEW COMMON THEMES CAUSING SCHOOL BOARDS TO IMPLEMENT LAYOFFS.

FIRST, SCHOOL DISTRICTS WILL NO LONGER RECEIVE FEDERAL COVID FUNDS AND SOME HAD BEEN RUNNING AT 40% OVER PRE-COVID BUDGETS.

AND SECOND, PUBLIC SCHOOLS HAVE REPORTED A DROP IN STUDENT ENROLLMENT WHICH IMPACTS SCHOOL FUNDING FORMULAS.

BETWEEN 2019 AND 2021 – STUDENT ENROLLMENT FOR FORT WORTH ISD DROPPED 10% — THE WALL STREET JOURNAL REPORTED.

DURING THE PANDEMIC – SOME PARENTS PULLED THEIR CHILDREN FROM PUBLIC SCHOOL TO EITHER HOME SCHOOL THEM OR ENROLL THEM IN PRIVATE OR CHARTER SCHOOLS

IF MORE STUDENTS ENROLLED IN PUBLIC SCHOOLS – THE SCHOOLS COULD DRAW ADDITIONAL STATE FUNDING.

SCHOOL FINANCE EXPERTS WARNED IN EARLY 2023 THAT SOME SCHOOL DISTRICTS WOULD FEEL THE EFFECTS OF A “FISCAL CLIFF” AS COVID RELIEF FUNDS RAN OUT.