According to an analysis from nonprofit group Education Resource Strategies (ERS), fiscal uncertainty due to a state’s reliance on federal money, their proportions of high-need school districts, and the number of students living in poverty are key risk factors for how federal funding cuts will affect each state. Upon analyzing those factors, a dozen states and their school districts are more vulnerable to federal funding cuts than others in K-12 education because of their higher proportions of high-need districts and students living in poverty. Those risk factors, along with a third risk factor for those 12 states — their higher dependency on federal funding — will increase the impact of funding cuts. Although most funding for public schools comes from local and state funding, reductions in federal revenue could lead to such impacts as staff reductions and/or program cancellations.
The 12 states that meet all three risk factors are Alabama, Arkansas, Kentucky, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and West Virginia.
In addition to the three risk factors reviewed by ERS, states and public schools are facing a number of other funding pressures, including federal fiscal delays and cutbacks, the end of COVID-19 emergency funding, and competition from school choice options.
For more from K-12 Dive click here.