| Every school leader, teacher, and district administrator today is feeling the crunch. Class sizes swell, support services shrink, and innovation budgets evaporate. Yet the mission remains unchanged: to deliver high-quality, equitable learning for every student. This post is a call to arms and not to despair, but to equip educators with clarity, context, and tools to act intentionally in a difficult funding landscape. |
The Landscape: Why Funding is More Volatile Now Than Before Multiple Revenue Sources, But Growing Instability
- State funding is mediated through formulas meant to level inequities, but those formulas often lag behind real costs (especially for special education, English learners, and mental health services).
- Federal funds are intended to provide additional support (e.g. Title I, Title II, ESSER, after-school programs), but increasingly those funds are delayed, withheld, or reprogrammed.
Rising Costs and Expanding Needs
- Staffing and benefits costs (especially health care, special education, and mental health supports) are rising faster than base revenues.
- Enrollment declines in many districts (since COVID) have triggered “hold harmless” clauses that are now expiring. Districts are receiving less per-pupil funding even though overhead and fixed costs remain the same.
- The proportion of students with greater needs (e.g. IEPs, English learners, social-emotional supports) continues to grow, placing stress on systems that were never fully funded for those demands.
Policy Uncertainty and Political Pressures
- Some states are revisiting (or are being forced via courts to revisit) funding formulas and tax structures.
- Federal policy changes, such as rescinding or withholding formerly approved grants can disrupt district planning at the last minute.
- Widening interest in school choice, vouchers, charter expansions, and redirected funding mandates can shift public dollars away from traditional public schools.
- Staffing and benefits costs (especially health care, special education, and mental health supports) are rising faster than base revenues.
- Enrollment declines in many districts (since COVID) have triggered “hold harmless” clauses that are now expiring. Districts are receiving less per-pupil funding even though overhead and fixed costs remain the same.
- The proportion of students with greater needs (e.g. IEPs, English learners, social-emotional supports) continues to grow, placing stress on systems that were never fully funded for those demands.
Why This Matters Deeply for Your Work, for Students, and for Equity
- Program cuts hurt innovation and growth - It’s often the first to go (e.g. STEM enrichment, professional development, instructional coaching).
- Burnout intensifies - Teachers take on extra duties, class sizes rise, support staff are lost.
- Equity gaps widen - Under resourced districts lose ground when wealthier schools can tap more local resources or private support.
- Strategic paralysis - Many leaders postpone bold initiatives because they fear “what if the money disappears next year?”
But funding instability doesn’t mean defeat. It means we must become more strategic, more collaborative, and more proactive.
Focus on data & impact tracking
- Tie programs to student outcomes and cost metrics; show ROI
- Builds credibility when asking for funds; requires good systems and capacity
- Pilot innovations on small scale before full roll-out
- Lowers risk of failure; may slow growth
- Allocate small portions of budget toward reserves when possible
- Provides buffer—but difficult when margins are razor thin
Models, Cases, and Reference Points Worth Studying
- Pew’s “Competing Forces Complicate State Education Funding” — A framing piece on the dynamics pressing state budgets. Pew Charitable Trusts
- Education Week article: “State Funding for Schools Is a Mess This Year, Too” — Real-time examples of states missing deadlines, court fights, and policy stakes. Education Week
- Learning Policy Institute blog: “States Face Uncertainty as an Estimated $6.2 Billion … Remains Unreleased” — A breakdown of federal funding impoundment and its effects. Learning Policy Institute
- Case: William Penn v. Pennsylvania — A court ruling that a state’s system was unconstitutional for creating manifest funding disparities. Wikipedia
- Ohio’s Fair School Funding Plan (HB 1) — A sustained legislative effort to more equitably fund schools, worth studying as a state reform model. Wikipedia
- EPI’s “Public education funding in the U.S. needs an overhaul” — A deeper critique of structural reliance on local funding and inequities in the system. Economic Policy Institute
Opportunity in Crisis
- Use constraints as creative constraints, not just obstacles.
- Invite your staff into transparent financial conversations; collective ownership helps morale.
- Prove small wins; let data tell your story.
- Be relentless at telling the human story behind the numbers.
Resources
- Allegretto, S., García, E., & Weiss, E. (2022, July 12). Public education funding in the U.S. needs an overhaul: How a larger federal role would boost equity and shield children from disinvestment during downturns. Economic Policy Institute. Retrieved from https://www.epi.org/publication/public-education-funding-in-the-us-needs-an-overhaul/
- DiNapoli, M. A., Jr., & Griffith, M. (2025, June 30). States face uncertainty as an estimated $6.2 billion in K–12 funding remains unreleased: Here’s the fiscal impact by state [Blog]. Learning Policy Institute. Retrieved from https://learningpolicyinstitute.org/blog/states-face-uncertainty-k-12-funding-remains-unreleased
- Fall, A., & Forrest, P. (2025, January 16). Competing forces complicate state education funding. The Pew Charitable Trusts. Retrieved from https://www.pew.org/en/research-and-analysis/articles/2025/01/16/competing-forces-complicate-state-education-funding?pse_map_data_picker=projenrollchange
- Lieberman, M. (2025, August 29). State funding for schools is a mess this year, too. Here’s why. Education Week. Retrieved from https://www.edweek.org/policy-politics/state-funding-for-schools-is-a-mess-this-year-too-heres-why/2025/08
- Peter G. Peterson Foundation. (2025, July 22). How is K-12 education funded? Retrieved from https://www.pgpf.org/article/how-is-k-12-education-funded/
- Shoemaker DeMio, P., & James, W. (2025, August 27). Public education under threat: 4 Trump administration actions to watch in the 2025-26 school year. Center for American Progress. Retrieved from https://www.americanprogress.org/article/public-education-under-threat-4-trump-administration-actions-to-watch-in-the-2025-26-school-year/





