Budget & Finance

Most Districts Say They Don’t Need More Time to Spend ESSER Dollars

By Mark Lieberman — February 01, 2024 2 min read
Roll of dollar banknotes with colored pencils on the shelf.
  • Save to favorites
  • Print

Most school districts don’t plan to take advantage of the chance to extend their deadline for spending the last—and largest—round of federal pandemic-relief aid, new survey data show.

The Association of School Business Officials (ASBO International) last fall surveyed 116 districts across 38 states to gauge progress on spending ESSER dollars, the last round of which expires later this year. The organization published the results on Jan. 31.

Only 13 percent of respondents said they’ll seek permission from the federal government to use some federal relief money on contracts that extend past the deadline for spending the rest of the funds. Another 15 percent said they weren’t sure whether they’d seek approval for “late liquidation.” Nearly two-thirds of districts, 65 percent, said they wouldn’t seek an extension.

The findings offer the latest rebuke to speculation in recent years about whether school districts were spending ESSER funds quickly enough to meet the deadlines attached to them. They also show that while a number of districts have asked for more time to spend the relief aid, most don’t think they’ll actually need it.

Congress sent three rounds of COVID-relief aid totaling $190 billion to schools—well more than the federal government annually spends on K-12 education—between March 2020 and March 2021. Schools face a Sept. 30 deadline to commit the last round of funds, then a Jan. 30, 2025, deadline to “liquidate,” or actually spend, the money.

States can apply on districts’ behalf for up to 14 additional months to spend the money on contracts that extend beyond that deadline for items such as tutoring, mental health services, and construction.

Four in 5 district respondents to the ASBO survey said they’ve committed more than 50 percent of the third round of ESSER funds to specific expenses. Nearly one-third said they’ve already made commitments for their entire allocation.

Districts that invested ESSER dollars in recurring expenses like staff salaries likely will have a harder time transitioning to a post-ESSER budget landscape, said Elleka Yost, the director of advocacy and research for ASBO International.

“This feels like a 70-30 split: 70 percent of districts say it’s more of a fiscal slide rather than a cliff,” Yost said. “But you do have those 30 percent of districts that are struggling a little bit more with how to sustain programs.”

The ASBO International survey found that 64 percent of districts said sustainability, or averting a fiscal cliff, was a key factor driving ESSER spending decisions, behind only students’ rising mental health, behavioral, and social-emotional needs.

Districts differed widely on the share of ESSER dollars that went toward staffing, according to the survey. Roughly 38 percent of respondents said they spent at least half their ESSER haul on staffing. Thirty-one percent, however, put less than 25 percent toward staffing.

The question of how to continue funding compensation for necessary positions is on the minds of many school district leaders, recent media reports show. The Grand Island district in Nebraska, for instance, is planning to cut three-dozen counselors and mental health service providers. The Little Rock district in Arkansas is pondering dozens of layoffs to account for a $15 million deficit. And in Apache Junction, Ariz., the district is eliminating social worker positions after failing to come up with a source of revenue to pay for them post-ESSER.

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Leadership in Education: Building Collaborative Teams and Driving Innovation
Learn strategies to build strong teams, foster innovation, & drive student success.
Content provided by Follett Learning
School & District Management K-12 Essentials Forum Principals, Lead Stronger in the New School Year
Join this free virtual event for a deep dive on the skills and motivation you need to put your best foot forward in the new year.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Privacy & Security Webinar
Navigating Modern Data Protection & Privacy in Education
Explore the modern landscape of data loss prevention in education and learn actionable strategies to protect sensitive data.
Content provided by  Symantec & Carahsoft

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Budget & Finance Some Districts Charge for School Bus Rides—If They Offer Transportation at All
Transportation charges are rarely scrutinized, but advocates say they're an equity issue.
4 min read
Group of children board schoolbus
E+
Budget & Finance Districts Struggle to Find the Least Harmful Cuts as Budgets Shrink
Districts are losing one-time federal funds and laboring to figure out how to prudently cut positions or even close schools.
9 min read
The direction of money, the question of money, the businessman stands at the crossroads with coins and ponders.
Z_Wei/iStock/Getty
Budget & Finance 3 Ways Districts Can Prepare for Financial Woes to Come
ESSER dollars are expiring soon, leaving districts to get creative with resources in future years.
4 min read
Hand putting together puzzle blocks with people icons.
iStock/Getty
Budget & Finance Districts Scramble to Comply With New Overtime Rule
Organizations push to delay new rule that requires overtime pay for more school employees.
2 min read
Illustration of woman turning back hands on clock.
Education Week + iStock / Getty Images Plus Week