Federal Aid to School Districts During the COVID-19 Recession   [open pdf - 1MB]

From the Abstract: "The coronavirus has created an enormous--and expensive--challenge for elementary and secondary schools, while simultaneously depleting the revenue sources on which public schools depend. During the Great Recession, the federal government filled in a significant share of lost revenue. In contrast, the federal response to date has been limited. If Congress decides to invest in future generations, it faces a range of options for how to structure an aid package. One key aspect for any stabilization package is how federal funds should be allocated to states. We consider the types of approaches used in recent proposals, during the Great Recession, and at the onset of the COVID-19 [coronavirus disease 2019] crisis, as well as in major ongoing federal education programs for compensatory and special education. We simulate the distribution of funds and show the considerable difference in how per-child allocations correlate with child poverty rates under the most likely alternative approaches."

Report Number:
NBER Working Paper No. 27550; National Bureau of Economic Research Working Paper No. 27550
2020 Nora E. Gordon and Sarah J. Reber. Posted here with permission. Documents are for personal use only and not for commercial profit.
Retrieved From:
National Bureau of Economic Research: https://www.nber.org/
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