The Public School General Operating Fund: What is it and Why Does it Matter?
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February 3, 2025School funding can be a confusing topic, but it’s important to understand, especially with the recent federal assistance that helped schools during the COVID-19 pandemic. Let’s break it down in simple terms!
What Are “One-Time Only” (OTO) Funds?
One-Time Only, or OTO funds, are special federal funds that are given to schools for very specific needs. Think of it like getting a gift card with a strict expiration date—you have to spend it on certain things, and you can’t use it for just anything. OTO funds can’t cover the regular costs of running a school, like paying teachers, buying books, or keeping the lights on. They’re meant for unique, temporary needs that may come up from time to time.
Why Did Schools Receive Federal COVID Assistance?
In 2020, the COVID-19 pandemic changed how schools worked. Suddenly, schools faced many new challenges, like paying for masks, extra cleaning, technology for remote learning, and new programs to help students who fell behind. To help schools with these new challenges, the federal government passed several relief bills, including:
- CARES Act – Stands for “Coronavirus Aid, Relief, and Economic Security Act.” This bill provided the first big batch of funds to help schools adjust to the new COVID-19 needs.
- ESSER 2 and ESSER 3 – ESSER stands for “Elementary and Secondary School Emergency Relief Fund.” These provided even more funds after the CARES Act to support schools.
These funds helped schools adapt during the pandemic by paying for things like safety equipment, online learning tools, and extra support for students who needed it.
How Long Will COVID Assistance Funds Last?
The COVID assistance funds are not meant to last forever. In fact, they are expected to run out by 2024. This is important because any programs or staff that were hired using these OTO funds will also lose their funding once the money runs out. For example, if a school hired more counselors to help students during the pandemic, they might not be able to keep those counselors unless they find new sources of funding.
Why Are OTO Funds Different from Regular School Funding?
Normally, schools receive money from sources like state and local taxes, which can be used for ongoing expenses like paying teachers, buying supplies, and maintaining school buildings. OTO funds, on the other hand, are limited in both time and purpose. They are like a one-time boost for special needs.
This means that schools need to carefully plan how they use these funds, knowing that they can’t rely on them in the long term. OTO funds were a helpful short-term solution, but schools must look for sustainable funding sources to keep any COVID-related programs going after 2024.
What Happens Next?
When the federal COVID assistance funds end in 2024, schools will need to make some choices. If they want to keep any of the programs or positions that were started with these funds, they’ll need to find new ways to pay for them. This might mean asking for more local funding or finding grants to help keep these programs running.
Understanding how school funding works is crucial because it impacts the resources and support available for students and teachers. Federal COVID assistance helped schools adapt during a difficult time, but as we move forward, schools will need to adjust and find new solutions to keep supporting their students.
