While students and families across the U.S. enjoyed time off during the summer months, the U.S. Department of Education (DOE) and Department of Labor (DOL) were busy! In late July, they introduced new guidelines for teacher apprenticeships; new investments and funding opportunities; and more.

Like most industries, school districts have been facing a multi-year labor crunch marked by challenges hiring teachers, aides, medical personnel, bus drivers, and other staff. The situation worsened during the COVID crisis, which saw public education lose 9% of or 730,000 jobs. At the same time, future pipelines of teacher talent looked to be coming up short. Combined, these make the July announcements even more valuable. Here’s what they included…

The National Guidelines for Apprenticeship Standards (NGS), developed by The Pathways Alliance, are designed to “guide states, school districts, and other apprenticeship sponsors to align their programs to quality standards for K-12 teachers. It also provides a framework that partners can use to develop state specific program standards and provide for expedited development and approval of new apprenticeship programs.” This is part of a long-term plan to strengthen and diversify the teacher workforce, while addressing the teacher shortage, by expanding the number of states with quality apprenticeship programs that reduce costs associated with getting licensed.

A new policy brief from the DOE, entitled Raise the Bar: Eliminating Educator Shortages through Increased Compensation, High-Quality and Affordable Preparation and Teacher Leadership, calls “on state and local leaders to utilize five key policy levers to Raise the Bar and eliminate educator shortages.” Levers include increasing compensation, expanding educator preparation programs, promoting career advancement and leadership opportunities, providing ongoing learning opportunities, and increasing diversity of educators.

Over $27 million in new awards were announced by the DOE. Teacher Quality Partnership (TQP) grants totaling $14.5 million focus on strengthening preparation programs and supports for new teachers. Supporting Effective Educator Development (SEED) funds of $12.7 million will “support the implementation of evidence-based practices that prepare, develop, or enhance the skills of educators” while also enabling the creation, expansion, and evaluation of practices that can be replicated and scaled.

In addition, the DOL awarded over $65 million in grants to 45 states and territories for apprenticeship programs in education and other sectors (indications are that 35 states are using the funds to address education sector needs). At the same time, the DOL introduced RTI International as a new Registered Apprenticeship intermediary focused on launching, promoting, and expanding programs for k-12 education.

While you and your team become familiar with these new tools, resources, and opportunities, you can depend on RBT CPAs to address all of your accounting, tax, audit, and advisory needs. To learn more, give us a call today.

RBT CPAs do not outsource work to any other country. All of our work is prepared in the U.S.A. 

School districts in certain parts of the country have adopted a four-day school week, primarily in response to staffing shortages and recruiting challenges. In some instances, local districts that were losing teachers and other staff to those offering the four-day school week had no choice but to do the same. With this trend picking up steam, especially following COVID, is it only a matter of time before it becomes a nationwide norm?

As an accountant, a partner in an accounting firm, and a working mother of two children in elementary school, I definitely have my own perspective on the topic. Before jumping to conclusions, I wanted to do some research to see if there’s something I’m missing and to better educate myself on the issues.

As reported by the Rand Organization, 257 U.S. schools operated on a four-day week in 1999. Within just 20 years that increased by over 622%, growing to more than 1,600 schools across 24 states by 2019. More than 70% were in rural locations that deal with higher costs for transportation and operations while struggling to attract and keep talent due to lower pay. Still, one big question – perhaps the most important one – remains: How does it affect students?

A study of student achievements in grades 3 to 8 shows students with a shorter school week fall a little bit behind their five-day-a-week peers each year. After about eight years, the total learning loss is similar to the loss experienced during COVID.  What’s more, results showed the five-day-a-week peers progressing faster.  (Source: Doss, C; Kilburn, R; Phillips, A. The Four-Day School Week: Are the Pros Worth the Cons? April 2023. Rand.org.)

That’s not to say there aren’t positives to the approach. Rural schools, in particular, find it to be a potent solution to attract and retain talent, improve job satisfaction, reduce burnout, and offset lower pay. It also reduces operational costs related to buildings, buses, school meals, substitute teachers, and more (although the savings is not much – just an estimated 1% to 2%). Teachers have more time to plan for lessons and complete grading. Overall, school morale appears to improve, but what about the students?

When I read the data available on the four-day-school-week, I was struck by how most of the benefits discussed don’t have anything to do with the students. I struggle with that. After all, the whole reason a school exists is for the children to learn, grow, and prepare to live successful lives.

As a business leader, it just feels counter-intuitive to promote an approach that doesn’t benefit clients. In truth, any business that doesn’t put its clients first won’t be in business for long. As noted by Rand, “A better approach to improving outcomes for both students and teachers would be to address the root cause of the challenges schools and districts face, including insufficient and inequitable funding and teacher and student stress.”

Numerous other studies are starting to come out on the issue. One showed fifth-grade students losing about five to six weeks of gains in math for each year of four-day schooling. Another study found it harms certain students more than others, with elementary school students showing a slower pace of growth on standardized math tests than their peers going to school five days a week; reading results were worse. In a minority of cases, when students make up time lost by attending school for more hours Monday through Thursday, learning doesn’t seem to be impacted.

One other point worth noting is that while the four-day-a-week saves schools money, it actually drives up costs for students’ families. A report on CNN indicated the shorter school week can result in an annual increase of $5,000 to $9,000 in childcare costs, which is between 5% and 9% of the median family income.  It feels like cost-shifting to me.

Personally, given global competition, the rapid growth of technology, and the ever-quickening pace of change, I would prefer to see children having more learning opportunities and time – not less. They already lost learning and socializing opportunities to COVID. Solutions to recruitment, retention, and costs absolutely need to be addressed, but not at our children’s expense. There just has to be a better way.

If your school district is facing financial challenges and looking for opportunities to save or manage funds better, perhaps RBT CPAs can help. Our firm has been serving clients in the Hudson Valley and beyond for over 50 years – including numerous school districts. In addition to accounting, tax, and audit services, our team is also available to provide advisory services to help you make the most of the money available. Perhaps there’s something we can do for you. Interested? Give us a call today.

With school district budget planning and presentation season underway, no doubt Elementary and Secondary School Emergency Relief (ESSER) funds and spending will be part of the discussion. Between ESSER I, II and III, a total of $189.5 billion in Federal funding was provided starting in 2020. Here’s a look at where things stand now and what may be coming next.

ESSER I was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act in FY 2020 and allocated $13.2 billion. Funds had to be obligated or budgeted by September 30, 2022 and liquidated or spent by January 28, 2023. (Seven states – including Illinois, Indiana, North Carolina, Mississippi, Ohio, Texas, and Wisconsin – along with the District of Columbia received an extension to March 30, 2024 to draw down funds.)

ESSER II allocated $54.3 billion under the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA) in FY 2021. Funds have to be obligated by September 30, 2023 and liquidated by January 28, 2024.

ESSER III was part of the American Rescue Plan and allocated $122.8 billion in FY 2021. Funds must be obligated by September 30, 2024 and spent by January 28, 2025.

Although COVID and all its protocols are becoming a memory, school districts are still dealing with the impact. Initially, funds were used to support continuous learning during the pandemic; reopen schools; and address students’ academic, social, and emotional needs. Then, the funding focus shifted to re-engaging students. Finally, funds focused on recovery, driving educational progress and emotional/mental health, and addressing critical personnel and staffing needs.

Of the Federal funds, New York received $14 billion; the City received $7.66 billion. A November 2022 press release from the Office of the NY State Comptroller revealed big differences in how funds are used. For example, the NYC DOE’s investment in closing the learning gap represents a smaller share of funds than other large NY districts and national peers. Also, while NYC planned to spend 30.6% on operational supports (i.e., reopening costs; teacher retention; learning technology; and existing programs), Rochester and Buffalo allocated about 62%; Syracuse and Yonkers allocated 36% and 38%, respectively.

NYC’s second largest allocation or 28.4% was for full expansion of universal free educational childcare for three-year-olds (although this may be changing to boosting quality of existing programs considering it will cost $752 million annually to maintain an expansion). By comparison, Rochester, Buffalo, Syracuse, and Yonkers were planning to use 2% or less for early childhood education.

NYS Comptroller DiNapoli urged school districts to monitor and report on academic recovery so policy makers and the public can “assess the effectiveness of funding decisions made.”

In late December, a U.S. Department of Education report provided an update on ESSER spending for FY 2021. K12 Dive notes, “The report said while there are ‘hopeful signs of recovery,’ education leaders and their communities at every level need to continue maximizing ESSER funds and other federal, state, and local resources to address student needs. Specifically, the report mentioned academic support through high-dosage tutoring programs and high-quality summer learning and after-school programs. Also emphasized was ensuring adequate staffing levels and mental health supports for students.”

Late last year McKinsey & Company surveyed 260 district leaders and found more than 90% of district administrators faced challenges deploying funds due to administrative hurdles, talent shortages, and lack of planning/operational capacity. Based on results, McKinsey suggests assessing the impact of existing investments to see what worked; developing new initiatives to fill gaps and allocate remaining funds; and re-examining next steps based on a set of defined criteria (i.e., student outcomes). McKinsey notes, “Districts can think beyond the two-year time frame, prioritizing investments in which money can be spent now that will build toward the future and reimagining elements of their education strategy and delivery to better meet students’ evolving needs.”

There are two more reasons to re-evaluate remaining ESSER budgets and plans. Costs have dramatically increased due to the economy. Also, as noted as part of Education Department FAQ updated in December, there are more pressing needs to address the pandemic’s impact on learning and emotional/mental health. In fact, districts are advised against using ESSER funds on new construction projects, according to K12Dive.com.

While your district is focusing on budget season and longer-term plans, you can depend on RBT CPAs to handle your accounting, tax, audit, and advisory needs with the highest levels of ethics and professionalism. We’ve been serving school districts in the Hudson Valley for over 50 years and believe we succeed when we help our clients succeed. Give us a call to see what we can do for you today.

Welcome to 2023 and the annual budget planning season. In addition to a myriad of factors that may play into budget discussions – from inflation and staff shortages to COVID, learning losses, mental health, and more – you may want to be prepared to speak about what’s going on with public school enrollment nationally, regionally, statewide, and in your district.

As reported in The New York Times, “School funding is tied directly to enrollment numbers in most states, and while federal pandemic aid has buffered school budgets so far, the Biden administration has made it clear that the relief is finite. Some districts are already bracing for budget shortfalls.”

It all starts with the biggest picture – U.S. population growth. On December 22, the U.S. Census Bureau provided an update.  After 2020-2021 showed historically low population growth in the U.S., 2022 started to show a rebound with .4% population growth due largely to international immigration (more people moving to the U.S. than leaving) and natural causes (more births than deaths).

However, the Northeast region of the country experienced a decline, largely due to negative net domestic migration (more people moving out of the region than into it). New York state showed the biggest decline in the country. While New York was one of 26 states with the highest natural increase (about 35,000 more births than deaths), it wasn’t enough to offset the huge losses due to net domestic migration (almost 300,000 more people moving out of the state than into it).

New York’s declining population is impacting the state’s public school enrollment. As reported by the Office of the New York State Comptroller, “Statewide, public school enrollment fell by a full 3 percent in the 2020-21 school year and a further 2 percent in the 2021-22 school year. This is significant, as student enrollment is a key factor in determining how much education aid districts receive from the State.”

The New York Empire Center reinforces these findings and reports a decline of over 5% since 2020 (it also has maps where you can see 2021 to 2022 enrollment numbers and percent change by district, county, and more).

New York is not alone. According to Return2LearnTracker.net, between Spring of 2020 and 2022, U.S. public school enrollment shrunk by nearly 1.3 million students. Five states saw net gains from 2020 to 2022, while 19 experienced a 3% decline or more. In terms of demographics, it appears the youngest students – a.k.a. kindergarten – experienced the largest decrease. (Remember, however, these youngsters were also among the last approved to receive COVID vaccines.)

No doubt, COVID impacted these numbers and resulted in more students being homeschooled, as well as increases in private and parochial school enrollments. (That doesn’t even get into the number of students who relocated to other parts of the country thanks to new flexibilities afforded to families via the option to work remotely.) However, New York’s declining public school enrollment started long before COVID.

According to the National Center for Education Statistics, from 2006 to 2011, New York State enrollment in public elementary and secondary schools dropped by 3.7% and the downward slide continued between 2011 and 2023 with another decrease of 1.9%.

What about the future? As reported by districtadministration.com, “Enrollment is projected to fall further, by about 4%, through 2030 as the school-aged population is expected to keep shrinking. Whereas half of U.S. states actually saw increases from 2009 to 2020, the future declines will be far more widespread, the analysis found. Enrollment in pre-K through grade 8 is projected to decrease by 5% with high school enrollment falling by 2%.” It’s projected New York will be the 10^th state for largest declines at 8%. (Learn more in the National Center for Education Statistics 2022 Report on the Condition of Education.)

However, not all New York public school districts are in the same situation. As reported by SiLive.com, “The state Board of Regents outlined its budget and legislative priorities, which include proposals like universal pre-K, universal access to Career and Technical Education (CTE), expanding opportunities for services and programs, supporting districts with rapid enrollment growth, and expanding access to school meals.”

If enrollment change is a growing concern in your district, you may want to consider conducting a  demographic study and forecast to help inform your budget process and community stakeholders.  While that’s outside RBT CPAs’ wheelhouse, our experts are available to help your district with accounting, taxes, audits, and more. To learn what RBT CPAs – a leading accounting firm in the Hudson Valley for over 50 years – can do for you, give us a call.