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 .

COLUMBIA 鈥� Fewer families in South Carolina will receive help covering the cost of child care as federal COVID-19 aid dries up and the state replaces just a quarter of that lost funding.

For about three years, amid the global coronavirus pandemic, the federal government raised income limits, making more parents eligible for federal dollars to pay for child care. But the last of that aid ends in about nine weeks.

State legislators agreed to put several million in state taxes toward the program, but not enough to cover all the parents newly helped by the expanded rules.

About 2,250 children will no longer qualify for child care scholarships, based on data provided by Department of Social Services spokeswoman Connelly-Anne Ragley.

Those scholarships cover most, if not all, of annual daycare costs through direct payments to eligible child care providers for every child whose parents鈥� income qualifies.

Before October 2020, working parents qualified for the federally funded daycare aid if their pay equaled 85% or less of the state median income. In South Carolina, that meant at or below $64,063 for a family of three.

But for those applying between October 2020 and September 2023, their income had to fall below 300% of the federal poverty level, or $74,580 or less for that same family of three.

DSS estimated it would take $10 million to continue covering child care expenses for 3,000 children under the expanded eligibility rules, and agency Director Michael Leach asked for that amount in his budget request to lawmakers.

Gov. Henry McMaster, , recommended $5 million instead.

In the end, legislators agreed to put $2.5 million toward the scholarships in the budget that started July 1.

Based on data provided by Social Services, that鈥檚 enough to cover aid for 750 of those 3,000 children.

鈥淎 lot of families were very upset because they 鈥� grew accustomed to having this benefit,鈥� Ragley said when parents were informed last fall that the money was expiring.

When the one-year scholarships dry up depends on when parents applied. Some families鈥� aid may have already ended. Last September marked the end of the expanded eligibility rules. So, the final daycare payments for scholarships awarded in September 2023 will be the end of this September.

Martha Strickland leads First Steps, which oversees private providers in the state鈥檚 for poor 4-year-olds. Parents with 4-year-olds in private preschool can also get scholarships for child care to cover the rest of their workday, both for their up to 12 years old. Strickland said she knows what a godsend the aid can be for families.

She talked about one mother who cried on the phone after finding out she qualified for free child care for her children, calling it 鈥渁 miracle鈥� for her family.

While DSS didn鈥檛 get the $10 million it requested, the agency is glad it got some money to disperse. The agency is still determining the new eligibility parameters for how to distribute it, Ragley said.

鈥淲e know the need of families to receive help paying for child care is great,鈥� she said.

Between October 2020 and July 2023, the agency granted more than 71,200 52-week scholarships for children of parents whose income fell in the expanded eligibility levels. That total number includes children counted multiple times if they received child care aid year after year, Ragley said.

How much each scholarship is worth depends on the age of the child and how highly a child care center is rated.

For a child care center to accept children under scholarships, they have to volunteer to be part of the state鈥檚 ABC Quality Program and meet health and safety standards beyond state minimum requirements, such as background checks for all staff members.

Ragley said this gives parents a sense of security when having to leave their children in the care of others while they go to work or attend school.

As a working mother herself, Ragley said she and her husband have to scramble when they don鈥檛 have child care. Luckily, they have paid time off of work they can use.

鈥淣ot everybody has that luxury or family who can step in and help,鈥� she said.

The rising cost of child care may also mean a parent ultimately chooses to stay home and out of the workforce, Ragley added.

鈥淏ecause by the time they pay the cost of child care out of the salary they make, they either break even or the margin is small,鈥� she said. 鈥淭hat is a population that, if they had access to affordable child care, could be additional workers that could fill the jobs that are open in the state.鈥�

Ragley said the COVID-19 pandemic put a spotlight on long-standing child care issues in South Carolina and nationwide.

The agency knows it will need more funding for its programs in the next state budget and beyond.

Its budget request will likely again include money for child care scholarships, as well as wage bonuses to encourage more people to enter the child care industry, startup grants for new centers and tax incentives for employers that offer child care as a benefit to their workers.

Ragley pointed to Georgia as an example, where businesses that provide or sponsor child care for employees are eligible for a state tax credit offsetting up to 75% of the cost.

The South Carolina Chamber of Commerce advocated for legislators to update South Carolina鈥檚 own long-standing but little-used tax break offered to employers that start or operate child care for workers or provide direct payments for private options. But the issue ultimately was not taken up.

Maine is subsidizing child care for those making up to 125% of the state median income, according to the Center for American Progress based in Washington, D.C.

Michigan is extending its COVID-19 relief policy, offering subsidies at 200% of the federal poverty level.

Minnesota is putting an additional $252 million this fiscal year into its scholarship program and promises to add $58.9 million more in the following budget year. And Montana is expanding child care subsidy eligibility up to 185% of the federal poverty level, according to the center.

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. SC Daily Gazette maintains editorial independence. Contact Editor Seanna Adcox for questions: info@scdailygazette.com. Follow SC Daily Gazette on and .

Michigan鈥檚 public schools have billions of dollars in emergency COVID-19 federal funding to spend 鈥� but they may be in danger of losing some of it if it goes unallocated by the end of September.

In 2021, President Joe Biden signed a stimulus bill that pushed funding into communities to help address economic challenges posed by COVID-19. The American Rescue Plan included funding for schools and education agencies.

Michigan in Elementary and Secondary School Emergency Relief (ESSER) funding in 2021, on top of previous, smaller stimulus checks. In total, the state has over $5.6 billion in federal funds to spend on education projects. The 2021 money must be allocated to schools or state education agencies for a specific project by Sept. 30.

But some Michigan districts and agencies may be in danger of not meeting that deadline and losing the funding, according to .

A (DOE) indicates there is $740.4 million remaining for schools to reimburse. While some schools may have already spent their allocated money without receiving reimbursements, there are probably millions of dollars left available for claiming in the next few months.

Local educational institutions, or public and charter schools, were allocated a bulk of this money. Public schools that received the federal funding 鈥� caused by the pandemic, in addition to addressing inequalities that were exacerbated during this period. This could look like additional after school or summer programs for students, something educational advocates have .

Additional ESSER money can be used for other health and education-related projects, including work-from-home or classroom technology, additional staff, improved air quality and mental health services.

Addressing long-term challenges

The one time payments may be difficult for schools to find projects for because they will only receive the funding once, according to Anne Kuhnen, the Kids Count policy director for the Michigan League for Public Policy. For example, if a district hired a mental health professional and paid their first year salary using the stimulus check, the district would have to use its own budget going forward, since the federal funds are not recurring.

鈥淓xpiration of the funding will be especially difficult for those districts that felt as if they had no other choice than to use some of the funds for recurring expenditures鈥攁nd didn鈥檛 plan or plan well for this moment,鈥� Michigan State Superintendent, Michael Rice said in a .

Michigan children were not exempt from learning challenges during the pandemic. Grade schoolers are less proficient in key subjects like math and reading than they were in 2019, before the pandemic, according to from the Annie E. Casey Foundation. In the same report, Michigan received its lowest education ranking in 35 years. Michigan ranked 41 out of 50 states for education in the 2021-22 school year.

Biden鈥檚 stimulus plan hopes to address some of these academic challenges, especially as the economy could struggle with a new workforce that is not equipped with academic proficiencies.

For example, students in the United States enrolled in K-12 education during the pandemic could collectively lose $900 billion in income if math proficiencies continue to be low, according to a study from the . This is attributed to the correlation between increased earnings and rising math scores on the National Assessment of Educational Progress in the thirty years prior to the pandemic.

Additionally, predicts Michigan students will make roughly 5.4% less than if there had not been a pandemic due to learning loss. This could contribute to a loss in overall gross domestic product, the dollar amount of goods and services produced, of around $300 billion for Michigan.

The researchers of the study from Hoover Institution, Eric A. Hanushek and Bradley Strauss, write that much of the ESSER funding has been used for additional tutoring or education time for students to combat learning losses, but the best way to attack the problem would be through incentives for teachers to 鈥渢ake on more demanding classroom tasks.鈥�

Rice said Michigan鈥檚 last two helped with pandemic and pre-pandemic era issues in the state, like the teacher shortage. He said recurring funding from the state budget will help address challenges like lack of literacy, transportation and teachers long-term.

鈥淭hat鈥檚 not to say that we are where we need to be from a funding perspective,鈥� Rice said. 鈥淚t鈥檚 simply to say that we鈥檝e made huge strides in the last two years, in the last two budgets, and I anticipate that this budget, we are going to make significant strides as well.鈥�

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Michigan Advance maintains editorial independence. Contact Editor Susan J. Demas for questions: info@michiganadvance.com. Follow Michigan Advance 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.