Over the past few years, Wisconsin school districts received an unprecedented influx of over $2 billion in one-time federal relief funds, primarily through the Elementary and Secondary School Emergency Relief (ESSER) programs. These funds were intended to help schools navigate the challenges of the COVID-19 pandemic, address learning loss, and support student well-being. Now that these funds have largely been spent, it's crucial for Wisconsin residents to understand how this substantial investment was utilized and what it means for the future of our local schools.
The pandemic significantly impacted students nationwide, leading to substantial declines in mathematics and reading scores. In Wisconsin, average math achievement remains a third of a grade level below 2019 levels, and reading achievement is still half a grade level behind. Federal relief funds were designed to mitigate these negative effects, allowing districts flexibility to address immediate needs and support student recovery.
Our school districts spent nearly all of the $2.3 billion in federal relief funds, leaving less than 0.01% unused. Initially, early spending focused heavily on educational technology to support virtual learning and immediate health and safety measures. However, as schools reopened, spending priorities shifted.
The largest portion of funds, 42.5% (nearly $1 billion), went towards addressing long-term school closure. This category broadly covered efforts to support students returning to in-person learning, including additional staff, intervention programs like tutoring and credit recovery, and resources for virtual learning. Many districts found these resources vital for helping students catch up. District leaders noted the particular challenges faced by the youngest learners, who experienced developmental delays in language and behavior.
The second highest spending category, at 32.9% (over $761 million), was preparedness and response to COVID-19. This included sanitizing supplies, staff training, physical distancing measures, and later, significant investments in building infrastructure. Notably, $294 million of ESSER III funds alone were spent on HVAC systems and construction projects. While these infrastructure improvements addressed deferred maintenance and improved air quality, they did not directly focus on student academic recovery. District leaders have since reflected that, with hindsight, they might have prioritized direct student support over some preventative supplies.
Educational technology, initially a top priority, decreased in proportion in later funding rounds, still accounting for substantial investments but shifting from 38.2% of early spending to about 12-15% in later rounds.
Milwaukee Public Schools (MPS), which received the largest share of federal funds in Wisconsin ($797.2 million), showed spending patterns that diverged from the statewide trend. While most districts ultimately prioritized "addressing long-term school closure," MPS focused more heavily on "preparedness and response to COVID-19," and importantly, on facilities expenses.
MPS dedicated a significant portion of its ESSER II and III funds to facilities, including deferred maintenance, new water fountains, and even construction projects like a barn facility for a high school. While these investments aimed to create a healthy and safe environment for students and staff and addressed critical maintenance needs (as highlighted by issues like lead poisoning cases), they were not primarily aimed at direct academic intervention. MPS still invested substantially in "accelerating learning," but facilities took precedence. This strategic choice by MPS leaders reflects their emphasis on immediate environmental needs within their district.
The one-time nature of these federal funds presents a significant challenge for Wisconsin schools. Many districts now face a "fiscal cliff" as the ESSER funding expires. This challenge is compounded by the state's decision to freeze per-pupil revenue increases for two consecutive years during the pandemic, which reduced the base funding for future years.
While many districts have successfully passed local referenda to sustain some spending, this alone may not be enough, especially with declining statewide student enrollment. Districts like Beloit have even seen residents repeatedly vote against such measures, exacerbating their financial constraints.
The loss of federal aid means districts must now grapple with maintaining effective initiatives that contributed to student recovery. Key areas like summer school enrollment, despite efforts to boost it with federal funds, remained 7% below 2019 levels by 2024. Mental health services, while recognized as a growing need by district leaders, constituted a relatively small portion of overall ESSER spending.
The pandemic aid provided critical, albeit temporary, support. However, overall statewide test scores, chronic absenteeism, and other key metrics have not yet returned to pre-pandemic levels. Wisconsin's school districts now face the difficult task of addressing these persistent gaps in academic achievement, rising mental health concerns, and student disengagement, all while navigating tighter budgets.
The conversations prompted by the pandemic aid – regarding priorities, trade-offs, and the best use of resources – will continue for years to come. Ultimately, protecting and investing in effective interventions for students, while remaining grounded in budget realities, will be crucial for state officials and local communities to achieve better outcomes for Wisconsin's children. As residents, understanding these challenges and participating in local discussions about school funding and priorities will be more important than ever.
The full report can be found at: https://wispolicyforum.org/research/adding-it-all-up-wisconsin-school-districts-use-of-federal-pandemic-relief-funds/
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