Sunday, November 30, 2025

Bonus money

During the Covid, the government handed out money to the tune of $2 trillion and $190 billion of that went to school districts. The money was supposed to be used for one time cost programs but many districts hired new people and to pay for raises. They were warned not to use funds for ongoing expenses as the funds were only temporary. This combined with decreasing enrollment has caused budget problems for schools. This is not unusual but rather the norm when some groups come into a windfall. Back in 1998 the tobacco settlement awarded money to states to be used for smoking treatment programs but much of it was diverted to general fund obligations. Some of this for ongoing programs and when the money stopped the programs had to be financed from some other source. Once the government sets up a program it is difficult to stop.

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