U.S. public schools, focus of debate on reopening, are unsung economic force

By David Lawder

WASHINGTON (Reuters) – As the debate rages over how to safely reopen U.S. schools this autumn, one factor weighs heavily: the nation’s 98,000 public “K-12” schools are a cornerstone of the economy, and a massive jobs engine.

Nearly 51 million American kids attend public elementary, middle and high schools, compared to about six million in private schools. The educated workforce and childcare the system creates have been key drivers of economic growth.

With a total workforce of about eight million Americans before the pandemic, kindergarten through 12th grade public education is also one of the largest U.S. employment sectors, exceeding construction, hospitals, finance and insurance and transportation and warehousing.

Total expenditures for these schools were $721 billion during the 2018 fiscal year, according to U.S. Census Bureau data.

That is more than the U.S. Defense Department’s $671 billion budget that year, or the Pentagon’s $705 billion request for fiscal 2021.

The Trump administration, including U.S. Education Secretary Betsy DeVos, has been pushing for schools to physically reopen in the fall as U.S. coronavirus deaths near 140,000, the world’s highest. But it has not embraced any blueprint, including federal health guidelines, for how to do that safely.

Parents, teachers and local governments are expressing growing concern, after a string of coronavirus outbreaks at day care and summer school classrooms around the country.

On Monday, Los Angeles and San Diego said their 700,000-student public K-12 schools would start online-only education in August, citing “skyrocketing” coronavirus infection rates in California.

LOCAL DECISION

The White House has little real sway over whether public schools will reopen – just about 8% of U.S. K-12 public school funding comes from the federal government, with the remainder split fairly evenly between state and local governments, the Census Bureau data shows.

The Department of Education says public school spending is heavily skewed toward salaries and benefits, which made up 80% of the per-pupil total spending of $12,612 in 2018. About 11% goes to purchased services and 7% to supplies.

Maintaining these jobs is particularly important for local communities because of the economic multiplier effect, said Elise Gould, senior economist at the Economic Policy Institute in Washington. That $721 billion in public school spending in 2018 translated to about $1.08 trillion in direct GDP output, she calculates, not including the economic benefits of better-educated workers.

Although it rebounded somewhat in June, local government education employment is still down by 667,000 since March, when schools shifted largely to online instruction, Bureau of Labor Statistics data show.

That is nearly double the 351,000 jobs lost in local school districts after the 2008-2009 financial crisis, when tax revenues and budgets withered.

The losses could increase without federal aid to state and local governments, Gould said. “They’re faced with austerity and severe cuts and education is one of the places they look.”

Many of those laid off, including teaching assistants, counselors, and maintenance workers, are likely supported by enhanced unemployment benefits, scheduled to expire at the end of July.

It is difficult to say how much school shutdowns in the fall would affect the U.S. economy. Analysis from Washington-based think tanks has focused on the long-term cost to the U.S. economy of a less skilled workforce in years to come due to school closures. But there is little data to show how closures in the fall would impact U.S. jobs and the GDP immediately.

WHO’S WATCHING THE KIDS?

Online-only K-12 education or closed schools may pull parents, and especially women, out of the workforce, particularly those with very young children that need more supervision.

According to a recent McKinsey & Co report on reopening schools, about 26.8 million Americans, or about 16% of the workforce, are dependent on child care in order to work.

Physically opening schools a few days a week, as has been proposed in New York City, will not help much without more federal aid for child care, said Bruce Fuller, a professor of education and public policy at the University of California-Berkeley.

“This cost would be offset by the surge in labor supply and income, as parents flock back to work, helping to jump-start the economy,” Fuller said.

DeVos told CNN on Sunday that because children contract the virus at a far lower rate than adults, there is little danger for them to be back in schools.

“We know that schools across the country look very different and that there’s not going to be a one-size-fits-all approach to everything,” DeVos told Fox News Sunday.

Despite the threat to their jobs, teachers are not pushing to reopen schools. A USA Today poll at the end of May revealed that one in five teachers said they were unlikely to return to their classrooms in the fall.

A Kaiser Family Foundation study found that nearly 1.5 million U.S. teachers, almost one in four, were at greater risk of serious illness if infected with the coronavirus due to age or existing health conditions.

(Reporting by David Lawder; Editing by Heather Timmons and Alistair Bell)

Trump says ‘may cut off funding’ if U.S. schools do not open

By Doina Chiacu

WASHINGTON (Reuters) – U.S. President Donald Trump on Wednesday threatened to cut off funding to schools that do not open in the fall and criticized a federal health agency’s guidelines for reopening schools as “very tough & expensive.”

The Republican president, who is seeking re-election in November, accused Democrats of wanting to keep schools shut for political reasons, despite a surge in coronavirus cases across the country.

“The Dems think it would be bad for them politically if U.S. schools open before the November Election, but is important for the children & families. May cut off funding if not open!” Trump said on Twitter, pointing to schools reopening in some European countries with no problems.

It was not clear what specific federal aid the Republican president had in mind. States are responsible for primary and secondary education under the U.S. Constitution, but the federal government provides some supplementary funding.

Trump also took aim at the U.S. Centers for Disease Control and Prevention, the nation’s health protection agency whose director sits on the White House coronavirus task force.

“I disagree with @CDCgov on their very tough & expensive guidelines for opening schools. While they want them open, they are asking schools to do very impractical things. I will be meeting with them!!!” Trump said in a separate Twitter post.

The White House did not elaborate on which CDC guidelines Trump took issue with.

The CDC has recommended a number of considerations for schools, including testing, dividing students into small groups, serving packaged lunches in classrooms instead of cafeterias, and minimizing sharing of school supplies. It advised sneeze guards and partitions be put in place when social distancing is not possible, and that seats be spaced at least six feet apart.

“It’s time for us to get our kids back to school,” Vice President Mike Pence said after a White House coronavirus task force meeting at the Department of Education on Wednesday.

Pence said the CDC plans to issue new guidelines on schools and stressed the agency’s guidelines were not meant to replace local school considerations and decision-making.

On Tuesday, Trump held meetings about school re-openings at the White House and said he would pressure state governors to open schools in the fall.

New York Governor Andrew Cuomo retorted on Wednesday that the federal government has no authority on schools and his state will announce reopening plans in the first week of August.

Business and conservative groups have urged reopening schools safely as important to getting parents back to work and reviving the U.S. economy.

Educators say socialization and other benefits such as school food programs are critically important. Experts have also shown online learning exacerbates the divide between poorer and more wealthy Americans, who have greater access to technology.

The alarming surge in cases in the United States, however, has raised concerns about the increased risk of spread of the virus by children to vulnerable adults at home as well as to older teachers and school staff.

New Jersey Governor Phil Murphy said on Wednesday he planned to reopen state schools in the fall, but reserved the right to “tweak that if it means saving lives.”

In Los Angeles, the top public health official said the planned reopening of primary and secondary schools in the fall is at risk. “Every single school district at this point needs to have plans in place to continue distance learning for 100% of the time,” Public Health Director Barbara Ferrer told officials in a private conference call reported by the Los Angeles Times.

(Reporting by Doina Chiacu; Editing by Bernadette Baum and Jonathan Oatis)