For school funding nerds like me (or anyone who wants students to have the resources they need to succeed), this is one of the most important times of the year: budget season! Right now, district school board members are looking at growing student needs and shrinking funds as they work to budgets for the next school year. These decisions will determine what students, families, and educators experience in classrooms this fall.

This budget season feels especially high stakes because a lot is hitting district leaders at once. State coffers, once flush with healthy revenue surpluses, are now seeing slowing growth in the aftermath of income tax cuts passed in recent years. At the same time, some state leaders have passed tax laws that will reduce or eliminate local property taxes — the primary and most stable local funding source for public schools and other public services, such as libraries, emergency services, and road repairs — now or in coming years.

There’s more. Republican-led states have expanded private school voucher programs to students regardless of learning need or family income, driving up state expenses. Federal cuts to Medicaid and SNAP, shifts in program costs to states, and grant and program office cuts at the Department of Education will add more strain to state budgets, leaving fewer dollars available for public schools.

At the district level, falling birthrates and increased costs that push families out of their homes are leading to declining enrollment. Stricter immigration enforcement is leading fewer students to show up for school. Combined, that means less school funding through state formulas that are tied to attendance or enrollment.

Districts across the country will feel these financial pressures immediately.

• Schools in Palm Beach County, Florida are facing a loss of $66 million in state revenue due to declining revenues. Ahead of the next budget cycle, each high school is being asked to cut more than a half-million dollars in spending, the equivalent of 10 first-year teachers’ salaries.
• The Indianapolis Public Schools board voted to cut $7 million from next school year’s budget, and anticipates still facing a $5 million shortfall. As a result, some schools will have to share “specials” teachers, like art or music, across campuses next year, and there will be fewer options for pre-K available.
• Reduced enrollment, rising special education costs, higher transportation costs, and hiring for roles that weren’t budgeted for, have left schools in Hartford, Connecticut, with projected $70 million deficit in the upcoming school year. The city is asking the state to step in.

With an already narrow window for public testimony on school board budgets approaching, advocates must act now to share their concerns and push for more equitable approaches to remedying funding shortfalls.

Issues Beyond Education Will Hit District Budgets

Federal education policies being enacted by the Trump administration are stealing from schools, communities, and students. Making matters worse, federal cuts to healthcare and food access programs in the One Big Beautiful Bill Act (OBBBA) are threatening the well-being of millions of students and their families. Beyond the direct harm to students, these cuts will have negative short- and long-term impacts on district budgets.

The impact of Medicaid cuts will hit districts most immediately because they depend on Medicaid reimbursement for the health services they provide students. This is especially true for high-poverty districts and districts in rural communities, where schools are often the main or only place students access healthcare. In a national survey by Healthy Schools Campaign, 90% of district leaders said they expect reductions in programs and services, including health services, if Congress were to enact the Medicaid cuts.

There’s another pressure tied to these cuts as well. Several state education agencies use Medicaid or SNAP enrollment to identify students from low-income backgrounds. As families are kicked off these programs, fewer students are likely to be identified. In states that give districts extra funds for each economically disadvantaged student they serve, districts could see sharp declines in formula funds unless states find another effective way to identify those students.

This is why conversations about school funding and our advocacy efforts cannot be separated from other policy areas.

Health policy is education policy.

Food access policy is education policy.

Immigration policy is education policy.

Here’s What Advocates Should Do Right Now

In years past, when faced with budget gaps, many district leaders strived to keep cuts away from the classroom. Now, however, with multiple budget pressures converging at once and fewer funds, it has become less feasible to only make cuts to central office budgets. Reductions in teachers, bus drivers, and school counselors now on the table. High-impact tutoring, literacy interventions, athletics, art, and music programs are all at risk.

Here’s where advocates can play a role:

At the local level:

• Figure out which part of your local government decides how much to spend on education. It may be a branch of county government, rather than the school board or district superintendent, and advocate for robust and equitable funding with those policymakers.
• Find out when your local school board will host hearings or work sessions on the 2026-2027 school year budget. Organize people in your community to attend or tune in.
• Submit written or oral testimony when possible. Focus your testimony on the importance of protecting resources for students with the most needs.
• Demand transparency and meaningful community engagement around policy and budget choices that are likely to have an outsized impact on students from low-income backgrounds, students with disabilities, students of color, multilingual learners, and students in rural communities.
• Be clear not only about what programs should be protected, but what can be cut. In a time of declining enrollments, for example, advocates may have to acknowledge that school building closures or class size increases will be necessary. Look to the Alliance for Resource Equity’s 10 Dimensions to see what an equitable education should look like for all students.

At the state level:

• Target advocacy on overall state education funding to those who hold the power to influence it: the governor, key legislators like appropriations committee leaders or party leadership, or others.
• Advocate for strategic, temporary hold harmless policies that can help districts gradually adjust their budgets to account for enrollment declines.
• Support progressive income, property, and corporate tax policies. For example, a progressive income tax is one in which wealthier people pay more of their income in taxes than people with lower incomes.
• Oppose reductions or elimination of income and property taxes—such policies reduce available revenue for public schools.
• Oppose proposals to expand a voucher program by removing income or learning need eligibility requirements.
• Advocate for guardrails, such as caps on how much the state can spend on vouchers and required state assessments, to universal voucher programs if your state has already adopted a universal voucher program.

At the federal level:

• Call or write to your congressmembers, urge them to increase funding for Title I and IDEA, which provide extra funding for students from low-income backgrounds and students with disabilities, respectively.
• Urge your congressmembers to protect key federal K-12 funding streams, such as Title II and Title III, which fund professional development for educators and supports for multilingual and immigrant learners.

So, while this picture may seem bleak, there are tangible steps that advocates can take to thwart efforts to decimate district budgets. Budgets don’t just represent dollars, but choices. And these decisions should put students first.

Photo by Allison Shelley for EDUimages