The Looming Financial Crisis? Resources for the Education Sector

Efforts to lift economy could tip off a financial crisis.” School districts brace for cuts.” Will the Banks Collapse?

With headlines like these making the rounds, there’s no way to avoid questions about how the COVID-19 pandemic has and will impact the economy — and in turn, America’s schools. The uncertainty is very real, and the consequences could be as well, but how can education leaders make sense of often contradictory and evolving prognostications? And if the impact won’t be catastrophic, what is the more complicated outlook?

At Bellwether Education, we’ve worked with schools, CMOs, districts, states, and nonprofits to understand this moment, and have begun to build an understanding — unpredictable as this moment is — of where our sector is headed fiscally, how organizations and policymakers should respond, and the key variables to keep an eye on. We understand how school funding works, from the federal budget process to state legislatures to local levies, and we’ve coached hundreds of clients on planning for and through financial uncertainty. 

In this new series, The Looming Financial Crisis?, we bring our policy chops together with our practical experience with districts, schools, and networks forward to share perspectives on how a financial crisis might play out and where impacts will be felt. Some questions we’ll explore:

  • Where does school revenue come from, what do we know about how the economic downturn might affect lower income communities? 
  • How can districts and schools carry out short-term and long-term planning amidst uncertainty, while prioritizing students furthest from opportunity?
  • What are the potential impacts on private school operations, especially those private schools dedicated to serving high-need students?
  • Will an economic downturn lead to increased interest in charter school mergers, and how should school leaders approach these potential partnerships and their impact on students and school communities? 

We’re here to cut through the noise so the education sector can navigate the uncertain future as effectively and efficiently as possible. Follow along as we roll out insights targeting school districts, state education agencies, individual schools, charter networks, and more.