Study Shows Large School Districts Such as Philadelphia Increasing Spending Despite Declining Enrollment

The Philadelphia school district is 18,000 students smaller than it was ten years ago, but its budget for next school year stands at $4.5 billion.

Officials are using reserves to cover an $88 million deficit. They are maintaining programs like STEM and basketball and assuring the protection of teaching and counseling positions despite dwindling COVID relief funds.

In discussions with stakeholders, the district found strong support for the additional academic assistance, aiming to become the most rapidly improving large urban school district in the country.

However, the current budget fails to align with the concept of “right-sizing,” which entails adjusting staffing levels to mirror the ongoing enrollment decline expected for the next decade.

The situation facing Philadelphia, projected to deplete reserves in two years, mirrors challenges in other urban districts. A recent report from the Manhattan Institute showcases similar issues in major school districts nationwide.

Before the outbreak, certain regions experienced population and enrollment declines leading to school closures. The current challenge of significant enrollment losses, exacerbated by expiring relief funds, is relatively new to district and state leaders.

The excess per-student spending increased in all nine cities analyzed, showcasing the need for school districts to revise their staffing and budgeting strategies.

The authors highlight that districts are yet to recalibrate their staff and budgeting to reflect the decreasing student population accurately.

Recent budget adjustments in some districts reflect varying responses to enrollment challenges.

State Legislators are considering a bill that could address the annual funding gap for the Philadelphia school district.

Texas is experiencing population growth and surpassing California in public-school student numbers. However, this growth is primarily witnessed in charter schools and sprawling suburban areas.

Texas districts are facing challenges from charter school enrollment shifts impacting district schools.

The outlook in California is bleak, with projections indicating a substantial decline in student numbers.

Districts are responding differently to the looming enrollment declines, with layoff notices and budget adjustments becoming common strategies.

Districts in California are being forced to make difficult decisions to align their resources with declining student numbers.

The Los Angeles County is projected to undergo a substantial loss in student population, prompting school closures to manage the challenge.

The largest districts, like Los Angeles Unified School District, are seeking strategies to attract and retain students amid declining enrollments.

California Governor is intervening to support schools facing revenue shortfalls resulting from the loss of federal aid.

The resistance to budget adjustments shows a push from unions for a new normal in school staffing and spending.

Policymakers may face challenges in balancing increased taxes or finding alternative funding solutions to support schools with fewer students but maintained staffing levels.

Efforts to seek tax hikes to support schools may face resistance from voters skeptical about rising costs despite declining enrollments.