As districts work to meet increasing student needs and maintain high-quality educational programs, the purchasing power of state and local dollars has eroded under the cumulative effects of persistent inflation. While aspects of the Education Cost Sharing (ECS) formula have changed over time, the base of the ECS formula — the foundation amount of $11,525 — has not been adjusted since 2013. Since that time, inflation has increased costs by approximately 39%.
To understand how inflation and rising costs are impacting students and teachers in the classroom, the School and State Finance Project conducted interviews with 10 superintendents and 11 chief financial officers (CFOs)/finance directors across 18 school districts of varying size, region, and demographic composition.
This policy briefing highlights themes identified during these interviews as well as a potential solution to addressing the direct impacts of inflation school districts are experiencing.
Citation
School and State Finance Project. (2025). Insights from District Leaders: How Adjusting the ECS Formula for Inflation Benefits Students & Teachers. Southington, CT: Author. Retrieved from https://files.schoolstatefinance.org/hubfs/Reports/Impacts%20of%20Inflation%20-%20District%20Case%20Study.pdf.