Delafield, Wis. – The Institute for Reforming Government released a new report on Tuesday, “Empty Schools, Empty Wallets: What Happened to $1.49 Billion in ESSER School Aid?”
The report draws on 17,830 school district allocations analyzed by IRG to find out how schools allocated the last round of federal COVID dollars. IRG tracked how districts planned to spend every last dollar: teachers, construction, and more.
Wisconsin districts added significant staff while losing more than 47,000 students and now face a difficult decision as fiscal cliffs loom: referenda or layoffs.
WHAT WE FOUND:
- Districts went on hiring sprees they now cannot afford.
- ESSER III dollars were intended as 1-time emergency relief, but districts allocated 41% of funds to permanent salaries, propping up staffing levels to all-time highs even as enrollment plummeted.
- Districts did not allocate funding fast enough.
- Despite needing to allocate funds in a brief 2-year window, districts had allocated only 34% of funding 6 months in and just 79% after 17 months, slowing transparency and, perhaps, recovery.
- Districts given more money could be less efficient with funding.
- Some districts with moderate poverty received $3,000 to $5,000 more per student than some districts with high poverty. Wild variations in funding meant some schools benefited far more than others.
- Districts sometimes made poor allocation decisions.
- Milwaukee—recipient of 34% of all ESSER III funds—allocated $193 million to construction projects, including athletics facilities and renovations at schools likely to close. At the same time, it failed to invest in essentials like classroom air conditioning, financial system updates, or lead remediation, leading to crises for students
- Districts recovered poorly from the pandemic.
- Despite unprecedented resources, Wisconsin saw disappointing recovery in academic performance. According to Harvard University, Wisconsin ranked 30th in reading recovery and 16th in math.
THE QUOTES:
“The bill has come due. Wisconsin public schools hired more staff than ever before, even as ESSER III dollars and students disappeared. Wisconsin taxpayers are now forced to face 2 horrible choices: neverending referenda or difficult layoffs.” – Quinton Klabon, IRG Senior Research Director
“Three years ago, IRG committed to tracking every last dollar of COVID relief money to schools. DPI’s track record shows it will go off the rails without such oversight. IRG is happy to provide accountability to ensure children get what they need to succeed.” – CJ Szafir, IRG CEO
DIG DEEPER:
Read the full report here. IRG’s full interactive dashboard covering every allocation from all 450 districts is available at ReformingGovernment.org/esser-funding-audit.
WHAT IS ESSER III?
ESSER III, part of the American Rescue Plan Act passed in March 2021, was the final and largest round of federal pandemic relief for K-12 schools. Wisconsin received $1.49 billion to help students recover from COVID-19 disruptions. Districts had through September 2024 to decide how to use the money.
