Reducing District Budgets Responsibly. Brief No. 4

This brief is one in a series aimed at providing K-12 education decision makers and advocates with an evidence base to ground discussions about how to best serve students during and following the novel coronavirus pandemic. It addresses one central question: What are the key considerations for districts that may need to reduce spending and potentially lay off employees? In order to answer this question, the brief breaks down the issue into four points: (1) State revenues will drop for districts in many states. The extent of revenue loss will vary considerably across districts and could be partially mitigated by the federal response; (2) If the federal government does not offset state revenue losses, districts will need to cut spending on salaries and benefits; (3) School spending cuts negatively affect students' educational outcomes and apparently neutral budget choices often have disproportionate effects on traditionally underserved students; and (4) The COVID-19 pandemic creates substantial new demands on schools that will likely require a reallocation of resources. Based on these points, the brief provides four strategies to consider and two strategies to avoid. [This brief was co-prepared by Georgetown University, McCourt School of Public Policy.]