May 8, 2019

Are pension costs creating a new school fiscal crisis?

The number of school districts teetering on insolvency may be far higher than the most recent state data suggests, and the culprit is swelling pension costs. According to a new survey from Pivot Learning and CSBA, nearly 60 percent of districts may be forced into deficit spending before the end of this fiscal year.

That number would stand in sharp contrast to the five local educational agencies that just last month reported they might not be able to meet all their financial obligations this year and next. The annual spring fiscal report from schools did, however, include 47 LEAs that said they might not be able to cover all their costs this year and next.

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