By Christina Fernandez, Grants Development Consultant (K-12 Education)
As the deadline for the final round of the Elementary and Secondary School Emergency Relief (ESSER III) funding approaches, schools nationwide are bracing for a significant financial shift. With over $200 billion in COVID Relief Funding for public and charter school districts and over $5 billion for private schools, these funds have been instrumental in helping educational institutions navigate the pandemic's challenges. The last day to obligate these funds is September 30, 2024, meaning no new contracts can be initiated, and schools can no longer commit their funds to new projects. After this date, schools will have an additional 120 days, OR until January 28, 2025, to spend down or liquidate their allocations. There is also an option for an extension of up to 14 months beyond the120 days, though this extension will only be granted on a case-by-case basis by the Department. While this additional time is not guaranteed, it does offer some relief and flexibility for districts to support their ongoing recovery and operational needs. Any unspent funds will revert to the federal government, leaving schools to rely on their standard annual budgets and seek external funding sources.
Read on to learn: how schools have utilized COVID relief funds, about alternative funding sources, and how to plan for the future and prevent a “financial cliff.”
The Utilization of COVID Relief Funds
Schools have utilized ARP ESSER III funds in numerous ways to address the immediate and long-term impacts of the pandemic. One of the primary uses has been to cover staff salaries. With the sudden shift to and from remote learning, many districts needed to hire additional teachers and support staff to address learning loss through extended learning time opportunities for students. Districts also hired additional counselors to address mental health needs and support social and emotional learning curricula for students. Depending on the technical literacy of a district, technology-related training and support services for students, teachers, and parents were expended to continue student learning in a remote/hybrid setting.
We also saw a significant investment in educational technology. Many schools became 1:1 by equipping students and teachers with laptops, tablets, and other necessary devices to continue instruction during the pandemic. Investments were also made to upgrade internet infrastructure, purchase mobile hotspots, and take additional cybersecurity measures to ensure safe and uninterrupted online learning environments. These purchases were critical in mitigating learning loss and ensuring all students had adequate access to the internet. Funding was also used to purchase instructional software programs to help students stay connected and access classroom materials remotely. These instructional software programs also allowed teachers to assess gaps in student learning and monitor their performance.
Alternative Funding Sources
As ARP ESSER III funds end, schools will need to look for alternative funding sources to bridge the financial gap. Several options are available:
- Bonds: Schools can issue bonds to raise funds for capital projects such as building improvements, technology upgrades, and other infrastructure needs. Bond measures often require voter approval but can provide significant financial support for large-scale projects.
- Title Funding: Federal Title funds have always been integral to a school’s budget. It is what schools relied on pre-pandemic and what they will continue to rely on post-pandemic. Title funds can be used in numerous ways, specifically when determining alternative ways to sustain ESSER-related purchases. As mentioned earlier, ESSER funding for most schools went towards teacher salaries and educational technology. Schools can allocate Title II Part A funds to provide teachers with training in educational technology. This includes workshops, courses, and certifications that empower educators to effectively utilize digital tools in their classrooms, providing an enhanced learning experience for their students.
Similarly, the most technologically forward of the Title program is Title IV part A, which gives schools the flexibility to address a wide range of needs. This funding source can be creatively leveraged to enhance technology integration through initiatives like 1:1 Device programs for hybrid or distance learning. Also, subject to the special 15% rule, LEAs could purchase high-quality digital curriculum materials that align with their educational goals and standards. Schools should ensure they are maximizing these funds, as they are already in hand.
- Competitive State and Federal Grants- State and federal funding sources are a great alternative to ESSER funds and are a way to support the future goals of your district. Competitive grants can support the development, implementation, and scaling of innovative education practices for several years depending on the grant opportunity. At the state level, funding options can vary significantly. Regularly checking your State Education Agency’s website, as well as other relevant state departments like Labor or Commerce, is crucial for staying informed about new opportunities that might be tailored to your project needs. This proactive approach ensures you are always aware of the latest resources, grants, and programs available, enabling you to maximize support and funding for your initiatives.
In the federal space, there are several noteworthy programs that can provide considerable financial support. The cyclical nature of federal programs allows schools to anticipate their opening and plan accordingly. Key federal opportunities include the Education Innovation and Research (EIR) Program, which funds new and effective programs aimed at improving student outcomes. Additionally, the Full-Service Community Schools Program and the Teacher Quality Partnership Program offer funding to support comprehensive educational improvements and professional development for educators. All these programs offer substantial award amounts and cover similar costs to those of ESSER.
Planning for the Future
To prevent future “financial cliffs,” schools should proactively plan around their technology lifecycle and grant timelines. Here are some steps to consider:
- Technology Lifecycle Planning: Develop a comprehensive technology plan that outlines the expected lifespan of all devices and infrastructure needs. A few things to consider when developing a plan are assessing the specific needs of each grade level, including deployment for new devices and the capacity of your existing infrastructure. Additionally, your plan should include a schedule for regular updates and replacements, ensuring that technology remains current and functional. It is essential to develop a plan that is sustainable, so you will also want to include a disposal process that is responsible and in compliance with any local regulations.
- Grant Timeline Management: Create a grants calendar that includes the name of the program, its application deadline, and the expected award date. This calendar should include opportunities that align best with your future project goals and objectives. A well-organized grants calendar can help you avoid gaps in your budget.. Refer to page X of this magazine to learn more about grant timelines
- Building Reserve Funds: Establishing reserve funds for unexpected expenses can provide a financial cushion. While this may require initial sacrifices, it will pay off in the long run by providing stability during funding transitions.
The end of ESSER III funding undoubtedly poses challenges for schools, as they face the reality of budget cuts and financial uncertainty. However, with careful planning and the strategic use of alternative funding sources, schools can navigate this transition successfully.