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State budget changes could exacerbate impending fiscal cliffs

January 25, 2024

Via: K-12 Dive

School districts are already anticipating a fiscal cliff from the expiration of federal pandemic relief funds, but that slide could be even steeper due to recent and upcoming state funding changes.

Finance experts and new analyses warn that developments at the state level, such as tax cuts and the expansion of private school voucher programs, could siphon funds from public schools and make it more difficult for them to recover from the expiration of federal pandemic aid in the 2024-25 school year.

States passing tax cuts in 2024 and those that have already passed cuts in previous years could make that harder, an analysis released by Center on Budget and Policy Priorities on Wednesday shows.

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