5 financial issues schools will face due to the coronavirus-induced recession

The education sector was still feeling effects from the Great Recession when the coronavirus pandemic shuttered school buildings this spring, sending the country into economic shock — one that is expected to be much worse than the 2007-2009 recession. 

Prior to the pandemic, more than 20 states were spending less per K-12 pupil post-Great Recession, and in nine states, those expenditure levels were still declining. Across the nation, cuts to state education budgets made during the last recession are being linked to sizable and long-lasting losses in student achievement and outcomes. 

Here, we’ve gathered insights from experts and reports about what financial issues district leaders should watch out for as they navigate the 2020-21 school year.

Federal education aid

If the current recession follows in the footsteps of the last one, it will likely hit K-12 schools hardest where state revenues account for a larger portion of district budgets.

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