School Districts Struggling with Layoffs After Spending COVID-19 Funds on Hiring

Around this time last year, Franklin Central School in upstate New York faced a $1.46 million budget gap and had to make difficult decisions: pursue a significant tax increase, lay off teachers, or transfer high school students to a neighboring district.

The state was also experiencing financial challenges and could adjust state aid amounts based on demographics with short notice. Franklin ended up being “held harmless,” meaning they were released from responsibility, and their state aid remained at $4.6 million, accounting for about 56 percent of the district’s 2024-2025 budget.

Despite flat state aid, there was still a 4 percent tax increase, and $200,000 was utilized from the district’s reserve fund. Some positions were eliminated through attrition, and Franklin collaborated with neighboring districts to share staff under specific circumstances. Fortunately, there were no job losses, and high school students did not have to be sent elsewhere, according to Superintendent Bryan Ayres.

“The hold harmless provision is crucial for us,” Ayres told The Epoch Times, noting that community organizations use the school building for events during evenings and weekends. “Losing a million dollars in state aid would have a devastating impact on the community.”

During the pandemic, Franklin allocated its federal Elementary and Secondary School Emergency Relief (ESSER) funds, exceeding $1 million, towards equipment and services rather than additional staff that couldn’t be sustained once federal funding ceased.

Now, districts nationwide that used ESSER funds to bolster staff during the pandemic are facing financial challenges as the funding source has expired. Unlike Franklin, they won’t be exempt from the consequences of their circumstances or prior spending choices. ESSER, totaling $190 billion over three years, came to an end in September.

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