Recent media reports have covered ongoing discussions about the current financial crisis public schools are facing, who is to blame, and what it could mean for students and schools if not resolved soon. This fiscal situation is complicated and the result of multiple issues colliding that threaten the financial sustainability of schools and the incredibly positive recent academic gains. We’ve created a fact sheet to help our followers stay informed.
In summary, NOLA Public Schools (NOLA-PS) are facing a significant funding shortfall for the 2024-2025 school year. This shortfall is due to lower-than-expected local revenue collections from sales and property taxes in the previous year. This shortfall is compounded by the recent failure to memorialize a settlement agreement with the City of New Orleans over the collection and disbursement of local tax revenues designated for education. Without additional funding to bridge the gap between projected and actual revenues, schools may be forced to make difficult decisions, including program cuts, staff layoffs, and reduced services for students.
The reasons for the discrepancy in funding projections are still being determined. However, an ongoing concern remains given the potential for a continued reduction in total tax revenue collected by the city in future years.
In exchange for ending a lawsuit claiming that the City of New Orleans was withholding tax dollars for administrative purposes, the Orleans Parish School Board and New Orleans City Council reached an agreement that provided immediate funding relief to schools along with the promise of future funding for important initiatives such as student mental health care and career and technical education programs. This agreement has stalled because of a disagreement in approach between the city administration and city council, and OPSB has turned to the courts to intervene.
While there are many perspectives on how we got here, one point is clear, without some clarity for schools on what revenues they can expect both in the short term and what to expect in future years, it could mean dramatic cuts for programs and supports that have led to the rapid academic growth that is outpacing the state average. This is particularly important given recent results that have shown Louisiana rising in nation rankings on NAEP scores.
Again, more detail can be found in the summary linked here. NSNO will continue to keep stakeholders informed as this situation develops.
