During a recent webinar sponsored by The Hunt Institute, Dr. Marguerite Roza, director of the Edunomics Lab at Georgetown University, broke down the four financial shocks that will be hitting districts all at once:

ESSER is boosting spending, but that ends abruptly in September 2024.|
- Most at risk: Districts using ESSER for recurring financial commitments via budget backfilling, new hires, or permanent raises.
Enrollment declines mean less revenue in the long run.|
- Most at risk: Urban districts, districts closed longer, and northern states.
Inflation, labor scarcity, and new hiring are driving up recurring commitments.|
- Most at risk: Those offering permanent raises that are larger than typical and those growing their staff roles.
An economic slowdown would affect growth in state revenues.|
- Most at risk: Districts that are more dependent on state revenue (or in states more affected by economic slowdowns).

But for the time being, districts are using these funds to tackle the most pressing issues in education, namely learning loss, staffing, and facilities and operations. That’s according to the most recent data from Burbio, a data service company, which has collected data from 6,000 school districts on how they plan to allocate their ESSER III funds.

Instant Insights /

ESSER III funds: Here's how districts are spending them

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