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A regular update from the Edunomics Lab at Georgetown’s McCourt School. 
By Chad Aldeman

Is this the year of participatory budget-making? In a recent piece for Forbes, I point out that Congressional leaders, through the American Rescue Plan (ARP) Act, bet that if they provide them enough money, state and local leaders can identify their own problems and implement their own solutions

Marguerite followed that up to note that, while the feds aren’t telling districts what to do with the money, they are telling them that they’d better make decisions with their communities. She writes: 
 
In many places, the pandemic redefined the relationship among home, school and community, changing the way parents, teachers and students worked together to support learning. Parents became educators. Living rooms, day care centers and houses of worship became classrooms. Now, communities, advocates and families have growing expectations for partnership and participation and might have new ideas about how schooling should look going forward. 
 
Use of participatory budgeting is a tall ask for sure, especially as school district plans for spending the federal relief funds are due at the end of the summer, and it takes time and effort to craft a set of meaningful choices and develop materials that communicate those options. 

Something that might help is for state and local budget-makers to create a list of cost-equivalent options. They should feel free to start with our list, or put together their own set of options based on local needs. Calculating apples-to-apples comparisons can help leaders consider multiple ways to accomplish the same goal, while allowing stakeholders to productively weigh in on decisions.  
Principals too can step in to help shape spending decisions to ensure strategies work for their students and schools. Principals can gather input (use this resource as a guide to leading conversations with families and communities) and share that with their districts to inform how ESSER funds are used.
 
In Education Next, Marguerite and Jessica go a step further and suggest that districts can send dollars directly to individual schools to increase transparency and public engagement, and a recent EdWeek article suggests this idea may be gaining traction.
ICYMI
ESSER-focused school finance mini-course: For those who couldn’t make our first workshop, we’re running another round starting August 11. Get details here, or email questions to Jordan.Tollefson@georgetown.edu
It’s not too late for budget-makers to get creative: In a recent podcast with the Christensen Institute, Marguerite noted, “The idea that the only way to help students is to hire people to help students is a limiting way to think about [ARP] money.” 

Districts in the hot seat: Watch Marguerite speak with Alan Borsuk at Marquette University Law School about what's at stake as districts decide how to spend their federal relief dollars.
Teacher bonuses with ESSER money? In The Wall Street Journal, Marguerite commented on state and district “thank you” payments for teachers, saying, “They could have been structured in a way…to strengthen the system, or to fill holes or to ensure teachers would be there next year. Otherwise it feels very much like it’s a benefit for the teachers and not the students.”

Tips for reporting on ESSER: Over at The Grade, Marguerite suggested 6 tips for reporters looking to follow how schools spend their share of federal relief dollars. 

Child tax credits: The IRS began sending out new child tax credits this month. Estimates suggest it could cut child poverty rates in half, but those figures assume perfect take-up rates. Experts are worried about the logistics of relying on the tax code as an anti-poverty program.
As always, please don’t hesitate to reach out with insights or suggestions: Chad.Aldeman@georgetown.edu
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Edunomics Lab is a Georgetown University research center exploring and modeling complex education finance decisions to inform education policy and practice.
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