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School districts set to get financial relief for coronavirus

Good.

Texas will distribute the vast majority of a $1.29 billion federal stimulus package to school districts this summer, using it to deliver on a promise that schools will remain fully funded this school year despite statewide closures due to the coronavirus pandemic, Texas Education Commissioner Mike Morath told school officials on a call Thursday.

State officials told school districts in March there would be no financial penalties for attendance declines, as COVID-19 fears spread and school districts were required to close their buildings. Now, Texas has decided to use its share of the federal stimulus package to fund that promise, distributing 90% directly to districts based on their student poverty rates, aiming to forestall layoffs and budget cuts.

Texas school districts can see how much they can expect to receive on the Texas Education Agency’s website. Houston Independent School District, the state’s most populous, will receive the highest award of $81.7 million.

On top of that stimulus package, Gov. Greg Abbott and state lawmakers agreed to reimburse all school districts for up to 75% of their pandemic-related expenses to date, using money from a federal grant awarded to Gov. Greg Abbott’s office. School districts have spent a state total of about $392 million on COVID-19 expenses.

School districts in Texas are funded based on student attendance, meaning the statewide school closures could have been a major financial hit. “With school closed to in-person attendance for nearly a third of the school year, generating the remainder of that entitlement would be impossible without us stepping in and making some changes,” Morath said Thursday.

States are allowed to use the federal stimulus funding to offset budget holes. “Federal guidance explicitly authorizes it as a way for states to sustain their school finance system, as long as net state funding remains above prior years,” Morath said.

From the description in the story, I don’t have any specific concerns. It sounds like the districts are going to have their COVID expenses mostly covered, which is what should happen in times like these. Now we just need the same thing for cities and states.

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