When schools were handed an unprecedented $129 billion in federal pandemic aid, it wasn鈥檛 surprising that COVID-related equipment topped the shopping list as schools rushed to snap up hotspots, laptops, desk dividers, and air filters.

But another widespread pattern is emerging as federal officials tally up the spending: Many districts also used their one-time funding to take care of longstanding needs, like replacing aging infrastructure and outdated textbooks, that schools previously wanted to tackle but could not afford to do so.

Around 1 in 3 school districts and charter operators nationwide, or some 5,200, used COVID relief during the 2022-23 school year to adopt new curriculum or learning materials, . That made it the most common strategy to address learning loss, which schools spent $11 billion on that year.

Schools spent some $6 billion in federal pandemic aid that same year to . That meant 1 out of every 10 COVID relief dollars spent during the 2022-23 school year went toward a school building. It was six times more than what states spent on tutoring.

And half of all COVID relief dollars schools spent that year, or just under $25 billion, were spent on staff salaries and benefits. A good chunk of that went toward paying new social workers and school nurses, with the aid.

Now that the COVID aid is mostly gone 鈥� 鈥� schools are confronting big questions about how they will cover curriculum overhauls and critical building repairs going forward, as well as how many of those additional staffers will lose their jobs. Many school districts, especially those with declining enrollments, are considering closing schools or cutting programs to balance their budgets.

The report looks at how the nation鈥檚 roughly 16,000 school districts and charter operators spent just over $49 billion in COVID relief dollars during the 2022-23 school year. Nearly all of the first two COVID relief packages had been exhausted and schools were halfway through spending their last and largest aid package by the end of the 2022-23 school year. Schools had spent some $117 billion in pandemic aid by that point.

Investing in people and projects with the potential for long-term payoffs made sense, federal officials say, and the Biden administration encouraged this type of spending.

Federal officials also believe provisions in the COVID aid laws that required states to maintain their own school funding will help schools return to more usual levels of funding more easily than they did following the Great Recession. When stimulus packages enacted in the wake of that financial crisis expired, many states slashed education funding and .

鈥淭here are certainly difficult decisions that are going to get made after $130 billion is fully invested,鈥� said Adam Schott, the principal deputy assistant secretary in the Education Department鈥檚 Office of Elementary and Secondary Education. 鈥淲e are just not seeing the type of fiscal cliff that we saw 10, 12, 15 years ago.鈥�

Part of the reason for that, Schott said, is that the Biden administration urged schools to spend the pandemic aid on both immediate needs but also long-term academic goals.

To the administration, investing in school buildings 鈥� and getting rid of issues like asbestos, mold, and lead 鈥� was also crucial.

鈥淔or decades, we鈥檝e known that a classroom that鈥檚 90 degrees in May or in September is an impediment to in-person learning,鈥� Schott said. 鈥淲e saw this as really core to academic recovery.鈥�

Many schools spent on curriculum amid worrying test scores

The new data about spending on curriculum and classroom materials comes as many states and districts and math, opting for materials that .

That spending also coincides with of and test score data showing that American children are academically stagnant or falling behind their earlier counterparts. That was true even before the pandemic. But the trend is .

And while recent state test scores have shown , 鈥淲e are clearly not where we ought to be,鈥� Schott said.

Now that the federal COVID aid is gone, 鈥渟tates have to be ready to grab the baton,鈥� he added, whether that鈥檚 finding new ways to spend existing federal funding, or adding money to state education budgets. 鈥淲e鈥檙e going to keep beating that drum with every minute we鈥檝e got left.鈥�

The new federal report also comes as President-elect Donald Trump prepares to start his second term in a few days. It鈥檚 unclear how or if top education officials in his administration will push schools to continue pandemic-era programs.

On the campaign trail, , and give more responsibility to state officials 鈥� who already largely control what and how kids learn.

By the 2022-23 school year, most students were back to learning in person for a second school year. The pandemic was declared officially over halfway through the school year. But many students were struggling to follow the routines of school. .

was a 鈥� though it鈥檚 unclear if some of these programs helped kids improve academically. About 2 in 5 school districts or charter school operators used COVID aid on summer programs that school year, reaching around 4.5 million students.

A smaller number of districts and charter operators 鈥� around 1 in 10 nationally, or around 2,100 鈥� used pandemic money to add instructional time. Researchers were .

Meanwhile, states spent $1 billion on tutoring that school year, and districts ran intensive tutoring programs that reached some 3 million kids, or around 6% of public school students. Of those students, around half were from low-income families, while 13% were students with disabilities and 14% were learning English as a new language 鈥� suggesting that many students from historically disadvantaged backgrounds did not receive tutoring.

鈥� a figure researchers have already said was likely much smaller than the share of kids who needed extra academic help after the pandemic鈥檚 disruptions to learning.

The report points out that COVID aid helped to put 鈥渕ore people working in America鈥檚 schools than at any time in the last decade.鈥� As of October 2024, the report notes, schools had added some 643,000 jobs since 2021, with a 43% increase in social workers and a 23% increase in school nurses.

Some school finance experts have criticized schools for . They鈥檝e said the hiring and firing is destabilizing, especially for schools that already had more staff turnover prior to the pandemic.

Still, Schott defended that use of the money. He pointed out that some of the added spending helped to raise low teacher pay or invest in gummed-up educator pipelines. Other spending got 鈥渕ore caring eyes on kids鈥� at a chaotic time.

鈥淵ou couldn鈥檛 maintain consistency for kids, you couldn鈥檛 deliver instruction, you couldn鈥檛 get core nutrition services flowing without people,鈥� he said.

Chalkbeat is a nonprofit news site covering educational change in public schools. This story was originally published by Chalkbeat. Sign up for their newsletters at . 

State Superintendent Eric Mackey said Thursday that job losses could result from the loss of federal funds in the near future.

Mackey made the comments after the State Board of Education approved the department鈥檚 $6.4 billion Education Trust Fund budget request for K-12 schools for fiscal year 2026, which lawmakers will consider when the Alabama Legislature meets for the 2025 regular session in February. Lawmakers will have the final word on how much money is allocated.

Mackey said the request included a $52 million line item for 鈥淪truggling Readers Beyond Grade 3.鈥� The superintendent, who did not give an estimate of jobs affected, told reporters that he thinks the number one use for those funds will be to hire reading interventionists.

鈥淎nd a lot of it鈥檚 actually used, being used as replacement money, because they were hiring reading interventionists with federal funds,鈥� he said. 鈥淔ederal funds have gone away, and so they now want to keep their interventionists using these funds.鈥�

Federal funds were provided to school districts and education through the federal Coronavirus Aid, Relief and Economic Security (CARES) Act of 2020 and the American Rescue Plan Act (ARPA) of 2021. The funds, known as Elementary and Secondary School Emergency Relief (ESSER), to address needs arising from the pandemic and for ongoing recovery efforts afterward.

Alabama received $3.28 billion in ESSER funds. , 91.55% of the money has been expended. Recipients had until Sept. 30 to commit ESSER funds allocated under ARPA.

Lawmakers

Rep. Danny Garrett, R-Trussville, chair of the House education budget committee, said Thursday he could not comment on the budget until he spoke with Mackey about the proposal.

Garrett said that they have talked for years about ESSER funds being temporary.

鈥淪o that鈥檚 been something that鈥檚 not unexpected, and hopefully systems have planned accordingly,鈥� he said.

A message was left with Sen. Arthur Orr, R-Decatur, chair of the Senate education budget committee.

Mackey said they have given schools money for assessments and professional development, but there鈥檚 a missing piece with the interventionists, who work with students. Certified academic language therapists (CALT) provide intervention for students with written language disorders, including dyslexia,

鈥淭here are many of those children who have reading difficulties, but they qualify for special education services, so they have another layer of service,鈥� he said. 鈥淏ut if they don鈥檛 qualify for special needs, then they don鈥檛 have that extra layer, and that鈥檚 where these CALT therapists come in very handy.鈥�

Mackey said he has spoken with several superintendents who have the money to retain their interventionists but will not replace them when they retire. Other superintendents cut all of their interventionist jobs this year, he said.

鈥淪o, we鈥檙e going to see a little bit of both, I think,鈥� he said. 鈥淥ver the next three years, what we鈥檙e going to see is that they鈥檙e going to be fewer employees, basically in the system.鈥�

He said they will regain some number of employees back with the Numeracy Act, which aims to set similar goals for math as the Literacy Act does for reading. The superintendent was hopeful schools would get more money for middle grade reading.

鈥淎s time goes they鈥檒l be able to move to other jobs, but there鈥檚 just no way for the state to really sustain all the money, all the federal money we鈥檙e losing,鈥� he said.

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Contact Editor Brian Lyman for questions: info@alabamareflector.com. Follow Alabama Reflector on and .

Over the last three years, an influx of pandemic aid has been transformative for many schools.

Some were able to hire social workers or give every child a laptop for the first time. Others fixed up old buildings, tutored struggling students, or revamped summer school programs.

But that era is quickly drawing to a close. And this month marks an important stop on the way toward the end of COVID relief.

Schools have to say by the end of this month how they plan to spend the last of their $123 billion from the American Rescue Plan, the third and final batch of schools鈥� COVID aid from the federal government. Then they have until Jan. 28, 2025 to spend the money.

The deadline at the end of September matters a lot: Schools that have any money not earmarked by then could eventually have to return the funds to the federal government. And some states have said they are concerned that schools may be at risk of not meeting that deadline.

Schools can seek an extension to spend their remaining aid until March 2026. But that won鈥檛 give them more time to officially decide how to use it 鈥� leaving some scrambling to come up with a plan before the deadline in 11 days.

鈥淲e have been in contact, in many cases multiple times, with districts and charters to remind them of their responsibility to obligate these funds,鈥� Tom Horne, Arizona鈥檚 state superintendent, said in a news release earlier this week. 鈥淢ost are showing the ability to do this, but a number of them are at great risk of reverting funds.鈥�

Some Arizona school districts or charter schools had yet to commit any of their funds to a specific purpose, Horne said, and many others have earmarked only a fraction of their aid.

Michigan said it expected some federal aid would be returned by schools, but noted it had left less than 1% of the first two aid packages on the table.

鈥淲e do anticipate that some school districts and subgrantees will not be able to obligate funds by the end of the month and may revert funds back to the federal government,鈥� Jeremy Meyer, a spokesperson for the Colorado Department of Education, told Chalkbeat in an email.

Still, federal officials told reporters on Thursday they were confident that little if any money was at risk of being returned by schools. Schools across the country have already spent and been reimbursed for 87% of their American Rescue Plan dollars, officials said. Much of the remaining money has been spent, too, but hasn鈥檛 yet shown up on spending trackers due to record-keeping lags.

Schools can鈥檛 use the aid to pay staff salaries after this month. But they can continue using it to do things like pay tutors to work with their students, finish up a construction project, or contract with a community organization to help with attendance outreach.

Federal officials have said they would look especially favorably on applications to spend the money beyond the usual timeline on , such as intensive tutoring, efforts to boost attendance, and extra instructional time.

Delaware, Kansas, Kentucky, Nebraska, and Puerto Rico have already applied for and received spending extensions on behalf of some districts and schools. These extensions cover some $1.1 billion in aid, federal officials said.

Several other states, including Colorado, Illinois, Maryland, Michigan, Mississippi, New Jersey, New York, Tennessee, and Washington, D.C., told Chalkbeat that they intended to apply for spending extensions in the coming weeks or months.

Nationwide, schools have already spent about $1.5 billion beyond original deadlines after getting extensions on their first two aid packages, federal officials said.

Schools have struggled for a number of reasons to spend down their pandemic aid, though often not for lack of need.

Construction delays held up spending in Mississippi, . Meanwhile, supply-chain issues slowed spending in Tennessee and Illinois.

In Colorado, some schools had trouble filling certain educator positions amidst national shortages, or they planned to hire a company to provide training and were still waiting for that service to come through, Meyer wrote.

In other cases, not as many students or staff showed up to certain activities like summer school or after-school programs as originally anticipated, so they ended up costing less than expected.

This story was originally published by Chalkbeat. Chalkbeat is a nonprofit news site covering educational change in public schools. Sign up for their newsletters at .

In November, voters in La Plata County in southwest Colorado will consider to support child care and affordable housing.

Local advocates plan to use a new $100,000 grant to urge a yes vote from residents and think ahead about how to distribute the money if the ballot measure passes.

The grant is focused on prenatal and birth-to-3 issues announced Monday by the nonprofit Early Milestones Colorado. Other recipients include Hunger Free Colorado, Immunize Colorado, and Mile High United Way. The grants, several of which aim to help Hispanic and immigrant communities, came through Early Milestones鈥� 鈥淚mpact on Equity Fund,鈥� a new program seeded with a .

The grant program unfolds at a challenging time for Colorado鈥檚 youngest children and their families. Federal COVID relief funds for early childhood have dried up, infant and toddler care is hard to find, and in recent years, much of the state鈥檚 energy has gone toward 4-year-olds served by the state鈥檚 program.

In La Plata County, the $100,000 Early Milestones grant will fund a bilingual 鈥渘avigator鈥� to help Spanish-speaking child care providers and families. It will also help leverage a consistent stream of money for child care 鈥� about $500,000 a year if the lodging tax measure passes. (Another $200,000 in lodging tax proceeds would go toward housing efforts.)

鈥淚t鈥檚 a child care desert down here,鈥� said Rachel Landis, executive director of the Good Food Collective, which is part of the La Plata Food Equity Coalition that received the grant. 鈥淚 know folks with babies are desperate.鈥�

The lodging tax measure money would fund 100 child care scholarships for middle-income families with babies and toddlers and bump up wages for infant and toddler teachers by 6 percent, she said.

Landis credits a group of Latine moms for pushing for more child care support. The mothers began meeting on their own every Friday night to discuss the issue and ultimately raised their idea to the broader coalition, she said.

鈥淚 think initially the coalition was like, 鈥楬uh, that鈥檚 interesting, child care. How鈥檚 that related to food security?鈥欌�� Landis said.

The mothers made a compelling case, connecting their ability to work and put food on the table to the availability of child care.

鈥淚t was this very systemic, upstream way to try to address multiple issues that feed into 鈥� food insecurity,鈥� she said.

Across the state in Jefferson County, another $100,000 Early Milestones grant will support a project focused on early childhood nutrition and mental health.

The grant, awarded to Triad Bright Futures, will fund a yearlong program called Maternal Child Health Leaders for Equity that includes training and leadership opportunities for 20 Hispanic community members. They鈥檒l receive stipends for participating and will practice what they鈥檝e learned by shadowing home visitors who support parents with young children or helping facilitate community meetings on mental health or food access.

Participants will also be part of a 鈥渃o-mentorship鈥� program in which local community leaders 鈥� from home visiting, parent support, and mental health groups 鈥� will provide guidance and advice. Participants will also share feedback and suggestions with their co-mentors.

Paulina Erices, director of development and strategic initiatives for Cuenta Conmigo Cooperative, one of the project partners, said the idea is to bridge the gap between local organizations that are working on health and social service efforts and community members with different ideas or approaches.

Often, the two groups are working on the same problems, 鈥渂ut they are not talking to each other,鈥� she said.

At the end of the yearlong program, which will start in January, Erices said she hopes local organizations and community members will have deeper connections and more shared projects.

This story was originally published by Chalkbeat. Chalkbeat is a nonprofit news site covering educational change in public schools. Sign up for their newsletters at .听

New Hampshire school districts received nearly a billion dollars in federal aid since the outbreak of COVID-19. The funding is meant to help pay for remote learning technology, HVAC upgrades, and learning loss initiatives.

But the money is due to expire in September 2024 鈥� and some researchers warn that schools could be facing a funding cliff if they don鈥檛 prepare.

A recent study of New England states by the Georgetown University Edunomics Lab, a research center, found that New Hampshire schools are on average facing a 3 percent budget cut in the next year, in part because of the loss of federal funding and in part because of a continuing drop in enrollment.

鈥淭he school finance landscape is shifting rapidly,鈥� said Marguerite Rosa, a research professor and the director of the Edunomics Lab, during a briefing to reporters in October. 鈥淎nd there鈥檚 fiscal shocks coming that we haven鈥檛 ever seen before.鈥�

The hardship will not hit school districts equally; schools with more low-income students will face greater budget headaches, researchers found. Schools with more low-income students received more federal COVID-relief money, but also stand to lose higher amounts of it if they don鈥檛 spend it.

Concord School District will likely need to reduce its budget by 2 percent to account for the loss of the COVID relief funding, researchers projected. Manchester School District, which has a higher proportion of students who qualify for free and reduced-price lunch, will face a 10 to 14 percent drop in funding, the study found.

The end of federal Elementary and Secondary School Emergency Relief, or ESSER, funding could be important to the upcoming spring school budget season. School boards are preparing to draft budgets for the 2024-2025 school year and release them to residents to approve at town and school meetings in March.

According to researchers, the ESSER money may have helped New Hampshire districts mask bigger problems with declining enrollment and delay the need to downsize accordingly. The anticipated sudden loss of funding could require schools to reduce personnel, the researchers found.

In Concord, the projections suggested 11 positions might need to be cut; in Manchester, 35 to 60 positions could be at risk.

Compounding the problem is the fact that despite receiving millions of dollars under the ESSER fund, many school districts have struggled to spend it all in time.

The study found that New Hampshire schools have spent their COVID relief money at a slower rate than the national average. And schools with higher portions of lower-income students have much more money left over than those with more higher-income students, researchers found.

School districts where more than 25 percent of students qualify for free and reduced-price lunch have an average of 69 percent of their funds remaining 鈥� compared to 46 percent of funds remaining in districts with less needy kids, according to the researchers.

鈥淲ith more to spend up against the deadline, these districts are at risk of a steeper fiscal cliff once the funds expire,鈥� the researchers wrote in a presentation accompanying the report.

In total, school districts have spent 87 percent of the total amount of ESSER funding, according to a dashboard by the Department of Education.

Barrett Christina, executive director of the New Hampshire School Boards Association, said school boards across the state are aware of the coming deadline to spend the ESSER money, and will be calibrating their budgets this spring to spend down as much of the remaining money as they can.

But he said it is unlikely that schools will be able to spend down all of it.

鈥淎s a matter of economics, I don鈥檛 think 100 percent of the money is going to be spent,鈥� Christina said in an interview. 鈥淏ut I鈥檓 certainly aware that districts and superintendents are budgeting appropriately and trying to find ways to use the money within the allowable uses of it.鈥�

The issue with leftover COVID relief money is not unique to New Hampshire schools, according to the Georgetown researchers. While Congress was quick to appropriate the money at the peak of the pandemic in 2021, schools across the country have struggled to spend it down efficiently.

Part of the difficulty has been caused by the overall economy. The ESSER funds were in part designed to be used to install or upgrade HVAC systems to improve air circulation in schools, a major concern as districts moved back into full-time learning in 2021. But supply chain problems and a shortage of labor has meant that many of those infrastructure projects have faced long delays, impeding the districts鈥� ability to spend down the federal aid.

School districts also sought to use the federal aid to fund paraprofessional positions to address learning loss caused when students moved to remote learning in 2020 and 2021. But a broader difficulty in hiring and an exodus in existing teachers and paraprofessionals has made filling those positions difficult.

In New Hampshire, the end of COVID money is compounded by another phenomenon: falling enrollment. This month, the Department of Education reported that New Hampshire public school enrollment in the current school year dropped 1.4 percent from last year, and has fallen 20.5 percent since 2002. Lower enrollment means schools receive less money in state adequacy aid and federal funding programs.

Georgetown researchers say that combination of factors 鈥� enrollment drops and funding lapses 鈥� means New Hampshire schools should expect the hardest budgeting conditions to arrive in the next coming school year.

鈥淲e鈥檝e been calling 鈥�24-鈥�25 the bloodletting (year),鈥� said Rosa.

State figures suggest schools will need to make adjustments when the federal money ends.

Of the nearly $900 million that has been budgeted by New Hampshire school districts since 2021, about 25 percent has gone to pay for staffing costs, according to the New Hampshire Department of Education. Another 25 percent has gone to 鈥渋nspection, testing, maintenance repair, replacement, and upgrade鈥� services.

Christina noted that school boards that had been using the COVID money to help pay for staffing costs are going to need to find off-ramps to account for the money ending soon, either by finding local money to continue paying those staff or eliminating those positions. This budget season will be the last chance to use the rest of the ESSER money to facilitate that off-ramp.

Some districts may try and use the funding for more short-term expenses, such as professional development for teachers.

When it comes to staffing, Christina noted that the Legislature鈥檚 decision to increase the state school funding formula to provide more dollars per student could help some districts absorb some of the cuts in federal aid. But he said that personnel costs have always been the most important costs for school boards to keep contained.

鈥淚 remember having conversations with school board members and administrators back in 2020, 2021, saying, 鈥楤e mindful of how you鈥檙e spending this money, because your salaries and your staffing are your real budget drivers,鈥欌�� Christina said. 鈥淪o I think we鈥檙e probably going to see a mix.鈥�

is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. New Hampshire Bulletin maintains editorial independence. Contact Editor Dana Wormald for questions: info@newhampshirebulletin.com. Follow New Hampshire Bulletin on and .

The state budget spending cap is expected to slam down on Connecticut鈥檚 public colleges and universities next year, reducing course offerings and teaching posts while triggering further tuition and fees hikes.

As the emergency fund surpluses that kept higher education afloat during the worst of the coronavirus pandemic disappear, the cap is blocking advocates who wanted to replace that temporary aid with recurring state funding.

Faculty unions, students and legislators gearing up to protect the system will be bumping heads with Gov. Ned Lamont, who鈥檚 become the chief defender of fiscal guardrails. Those restraints are designed not only to keep government spending in line with taxpayers鈥� wallets but also to whittle down the enormous debt that threatened state government鈥檚 fiscal stability just one decade ago.

And the administration says Connecticut simply can鈥檛 maintain emergency funding levels indefinitely. All schools must adjust, and given the declining enrollment at many, the administration adds, it shouldn鈥檛 be as difficult as some argue.

鈥淭he students who are coming in now are going to lose so much,鈥� said Xander Tyler, an economics senior at Central Connecticut State University. 鈥淭hey鈥檙e going to lose more competent and passionate faculty. They鈥檙e going to lose interest. They鈥檙e going to lose services.鈥�

鈥淲e鈥檙e not getting close to [properly] serving the students who need us,鈥� said Colena Sesanker, a philosophy professor at Gateway Community College in New Haven and political director of the Local 1973 of the Connecticut Congress of Community Colleges, commonly known as the 4 C鈥檚. 鈥淲e are the portion of the state budget that is most discretionary. What I find extremely strange is no one [among state policy makers] has even flinched.鈥�

The Board of Regents for Higher Education, which oversees the 12 community colleges, four regional state universities and online Charter Oak College, is projecting next fiscal year, a gap equal to 11% of the entire system budget.

The University of Connecticut, the state鈥檚 flagship university, is facing a $70 million gap in 2024-25 for its main campus in Storrs and its satellite campuses.

Getting higher ed through the worst of the pandemic

Colleges and universities across the state watched enrollment drop as students initially fled campuses in 2020, and some were reluctant to live in dorms after that.

Lawmakers and Lamont responded by giving the Board of Regents鈥� system about $250 million last fiscal year .

This fiscal year, the funding from temporary sources is closer to $210 million. And according to the preliminary state budget for 2024-25, it鈥檚 about $76 million.

UConn is in a stronger fiscal position than the other higher education units. Its undergrad enrollment at Storrs and the regional campuses has bounced back beyond pre-pandemic levels after a modest dip in 2021. But it also needed and received extra funding, about $64 million in temporary funds, last fiscal year and . The preliminary 2024-25 budget would send UConn $31 million.

Lamont鈥檚 budget director, Jeffrey Beckham, said government has provided a 鈥済lide path鈥� to wean all higher ed units off this money. In other words, the temporary funds are retreating gradually, but most of it has to go away.

鈥淓veryone ought to be on notice,鈥� Beckham said. 鈥淲e鈥檝e got to get them back to more historic, reasonably funded block grant levels.鈥�

Lamont鈥檚 budget chief insists universities and colleges should have known this money was temporary and planned accordingly, using it only to cover one-time and emergency expenses.

But higher ed leaders 鈥� and some legislators 鈥� say that simply makes no sense.

Most state officials knew the temporary aid was going toward ongoing expenses, like wages and benefits, and with good reason, said former House Speaker Richard J. Balducci, who chairs the Board of Regents鈥� Finance & Infrastructure Committee.

So-called temporary aid comprised one-sixth of the entire Board of Regents鈥� system budget last fiscal year. How could anyone assume that wouldn鈥檛 be used on recurring expenses like salaries and financial aid? Balducci asked.

When Lamont and some legislators called last spring for significant reductions to higher education, it 鈥渨as pretty much a shock to everyone,鈥� he added.

And even as the governor and other officials were pushing colleges and universities to tighten their belts, they also were making that even task more difficult.

Lamont negotiated and legislators approved  that are complicating many agency budgets 鈥� including higher ed units.

Between 2022 and 2025, workers, annually, are getting a 2.5% general wage increase and step increases that typically add another 2 percentage points to any wage hike.

The package also awarded unionized workers $3,000 in bonuses in the spring and summer of 2022.

All higher ed units combined had to find an extra $52 million this fiscal year to cover those pay hikes.

And Lamont and lawmakers also changed how the state budgets cover the fringe benefits for many college and university workers. Starting this fiscal year, most of those costs now are covered through the comptroller鈥檚 office budget. At the same time, the state reduced its regular grants to higher ed units.

But higher ed lost more than it gained through this switch. UConn came up $60 million short for its Storrs and regional campuses and another $40 million for its Farmington-based health center.

The regional universities, community colleges and Charter Oak collectively lost $80 million.

Spending cap fits extra tight next year

Still, public colleges and universities aren鈥檛 the only ones with problems.

Over the last two years, Lamont and legislators have delivered one of the  in modern history, focusing most of that relief on middle class households. The Democratic governor and legislative leaders from both parties repeatedly insisted that these cuts must remain in place, even if the national economic picture shifts.

鈥淲e鈥檙e very proud of the largest tax cut in the state鈥檚 history,鈥� Beckham said. 鈥淲e would not do anything to change that.鈥�

And while the nation has been able to avoid a recession this year, state government鈥檚 short-term fiscal picture has shifted 鈥� not from excellent to horrible, but rather simply from excellent to good.

That makes all the difference, though, because the billions of dollars in annual revenue growth that made the recent tax cuts possible also generated the surpluses that helped provide temporary extra dollars to higher education.

A new report from state fiscal analysts Monday is expected to show that while Connecticut鈥檚 finances remain in balance, .

And then there鈥檚 the spending cap.

The governor and legislators approved a preliminary state budget last spring for the 2024-25 fiscal year, and they will consider adjustments to it once the regular 2024 legislative session convenes on Feb. 7.

But the $26 billion first draft is under the cap by the narrowest of margins, less than $12 million 鈥� or 1/22nd of 1% all planned spending.

Further complicating matters, the current state budget, though still in the black, is facing  in various accounts, including $120 million in Medicaid.

Beckham said he expects those added costs will continue next fiscal year, meaning there already isn鈥檛 enough room under the cap to accommodate them 鈥� let alone additional funds for higher education.

There is a mechanism for legally exceeding the cap. It requires the governor to declare a budget emergency and for 60% of both the House and Senate to agree. Connecticut hasn鈥檛 voted to legally exceeded the cap since 2007.

There are other ways around the cap. Carrying forward surplus from earlier years is one 鈥� but you need to have a healthy surplus to do that.

Another option is called a revenue intercept. This accounting mechanism targets dollars before they arrive in the General Fund and assigns them for specific purposes. Because the cap only applies to budgetary appropriations, these dollars then could be used for a specific purpose, such as higher education, without counting against the spending cap limit.

But Lamont has opposed such maneuvers, arguing they fly against the spirit of the cap.

Still, the General Assembly鈥檚 top leaders warned that while some efficiencies can be found, they won鈥檛 allow higher education to be financially gutted.

鈥淚鈥檝e never viewed the cap as something that should stop us from funding critical services,鈥� said Senate President Pro Tem Martin M. Looney, D-New Haven. 鈥淣obody should be a purist.鈥�

鈥淣o one is looking to have a budget adopted that leaves UConn and higher ed unable to perform their functions,鈥� added House Speaker Matt Ritter, D-Hartford.

Still, Lamont has a third reason to worry about the cap besides balancing the books and preserving tax relief.

Connecticut is one of the most indebted states, per capita, in the nation, entering this year with about $88 billion in unfunded retirement benefit obligations and bonded debt.

Much of that stemmed from more than seven decades of inadequate savings habits and annual spending that often grew faster than taxpayers鈥� income.

Some lawmakers sometimes lose sight of the big picture, the governor said last week. The cap is 鈥渃ertainly an important priority for a governor,鈥� he said. 鈥淪ometimes for individual legislators, it鈥檚 not as much of a priority.鈥�

Asking students for more, trimming programs

Faced with stern opposition and evaporating aid, higher education officials say they don鈥檛 have many options.

The Board of Regents voted last summer to raise community college tuition and fees. A full-time in-state student now pays $4,966, up 5.7% from the $4,700 charged last year.

And a tuition- and fee-hike schedule adopted last October raised the average cost this year for in-state students living on campus at the regional universities by 3%, from $13,795 to $14,210.

The regents also offered the system chancellor鈥檚 office to prepare a deficit mitigation plan to wipe away as much red ink as possible. That鈥檚 due to the full board on Wednesday.

Balducci said he believes the plan will focus on consolidation, trying to preserve as much as possible through efficiency.

Faculty union leaders fear the final picture will be grim.

鈥淲e frankly don’t understand how [state lawmakers] are not owning the loss of services that have already taken place and the reduction in quality of services that have already taken place,鈥� said Seth Freeman, president of the 4Cs. 鈥淲e just have the view that Gov. Lamont and the legislators are completely failing our students across the state.鈥�

Freeman added that the community college system already has been tightening its belt.

鈥淲e’ve been able to do more with less for years, but now I think we’re doing less with less,鈥� he added. 鈥淲e’re just reducing services now.鈥�

UConn raised tuition this fall as part of a five-year plan, bumping the annual cost for a full-time, in-state student attending Storrs 

And the university鈥檚 Board of Trustees is expected to vote in December on  by 2.75% next year.

If approved, the full cost for a full-time, in-state student living on the Storrs campus would be $35,424 next fall.

Jeffrey Geoghegan, UConn鈥檚 executive vice president for finance, said the university has no further plans to boost tuition beyond the existing schedule.

He didn鈥檛 offer specifics on how the university might deal with the potential loss of state funds. 

鈥淎s there is no one answer to address the FY25 state budget, we continue to focus on the options available to us, always striving to put students first and be an economic driver for the state of Connecticut,鈥� he said.

Should universities and colleges be able to save as enrollment drops?

Beckham and others argue higher education should be able to get by with less and not have to ask students to pay more.

The budget director noted enrollment at the community colleges in particular has been on the decline since 2012 and dropped about 14% in the five years before the pandemic.

And according to the Board of Regents, community college enrollment, counting full- and part-time, stood at 33,752 students, down 2.6% from two years ago.

The regional state universities, with 21,185 undergraduate students this fall, are down 4% from two years ago.

UConn experienced a slight dip in enrollment at Storrs and its regional campuses in 2021. But the 24,356 students attending this fall is up almost 2% from pre-pandemic levels.

Beckham said all higher ed units must meet 鈥渢he needs of the market,鈥� preserve those programs most in demand and make hard choices elsewhere.

And he鈥檚 not alone.

Minority Republicans in the state House and Senate pushed hard last spring to begin pulling back aid to higher education, also arguing that all systems 鈥� particularly those with declining enrollment 鈥� should be finding more savings.

And Sen. Cathy Osten, D-Sprague, co-chairwoman of the Appropriations Committee, said she expects her panel will be overwhelmed with demands for more funding early next year 鈥� and not just from higher education. Advocates for elder care and other Medicaid-supported programs, social services and elderly childhood development also are expected to make strong claims.

Osten added that it鈥檚 getting harder to justify maintaining funding for the community colleges in particular.

鈥淲e just don鈥檛 have students returning,鈥� she said. 鈥淲e need to figure that out.鈥�

But others say it鈥檚 more complicated than that.

For the community colleges, enrolling more students generates more Pell grant scholarship funds, which, in turn, helps the state to operate a system that allows nearly all students to graduate from that system debt-free.

And if programs are eliminated, will enrollment decline further?

鈥淲hen you lose students, these institutions are losing revenue,鈥� said Rep. Greg Haddad, D-Mansfield, co-chairman of the legislature鈥檚 Higher Education and Employment Advancement Committee. 鈥淭he institutions themselves are trying to right-size because of that lost tuition revenue, and to compound that by also reducing the state appropriation, I think, makes it a doubly hard revenue loss to deal with.鈥� 

Balducci said the Board of Regents will try to cut costs strategically but not at the expense of affordability or the ability to offer core programs. Many students attend community college and then the regional universities because there is no other affordable plan for them to secure a college degree.

And if lawmakers cut too deeply, 鈥測ou鈥檙e going to hurt the future leaders of the state, the future jobs of the state.鈥�

Tyler said they believe many of their fellow students at Central Connecticut State University chose it for its affordability. But during their 4 1/2 years there, they’ve seen the impact of cutbacks on faculty, courses and student resources.

鈥淚’m pretty sure the school went over a year without staffing for the LGBTQ center. For me, that was a huge devastating loss,鈥� Tyler said. 鈥淚 also had built meaningful relationships with professors who really invested in my growth and my learning, and then they just disappeared. They were here one semester, the next I come back, and they’re not there anymore.鈥�

This story was originally published in CT Mirror.