Teacher retention and improving academics were last year’s problems. Now, superintendents are focused on a bigger issue that impacts every aspect of schooling: the budget.
Financial shortages are the greatest challenge for school districts nationwide, according to 54% of superintendents surveyed by the RAND Corporation, a research organization. That figure has increased by more than 20% since last year.
Nearly every district leader interviewed by the researchers warned that rising costs are outstripping revenues. Still, superintendents are hesitant to cut staff for fear of intensifying workloads.
This covers everyday operating expenses, like utilities, transportation and facilities. According to one superintendent, the cost of purchasing school buses has doubled from $80,000 to $160,000 over his six-year tenure.
“Everything else has gotten more expensive. I mean, keeping the lights on, salary increases, all those things,” said one district leader in the report.
Cost-of-living salary increases worsen the budget shortfalls, especially in districts that employed more staff during the pandemic. Some leaders described using COVID-19 relief funds to add positions to support student well-being. Now, those roles are too difficult to eliminate.
Declining revenues
Declining enrollment exacerbates financial challenges. As one leader explained, “special education costs, transportation and utilities—they’re outpacing what the state can give us.”
Some leaders cited their communities’ unwillingness to approve tax increases.
Even leaders who report stable enrollment said inflation and constrained state and local funding are negatively impacting their budgets.
“We have so many new charter schools popping up. And then… [lower] birth rates, and just naturally, our economic growth is more minimal than we would like,” said one leader.
Still, leaders are incorporating strategies to attract and retain students amid increased competition. Here are some examples:
Strategies to boost student enrollment
- Marketing campaign to families about the benefits of attending public schools (40%)
- Expanding preK services (33%)
- Offering additional extracurriculars or specialized programs (33%)
- Offering tutoring, electives or other teaching services to families not in your public schools (10%)
- Conducting market research about parent or student preferences for schooling (6%)
Read the full report here.
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