Hold Harmless for Whom? The Impact of COVID Era Policies on School Funding, Teachers, and Students. EdWorkingPaper No. 26-1432

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Bibliographic Details
Title: Hold Harmless for Whom? The Impact of COVID Era Policies on School Funding, Teachers, and Students. EdWorkingPaper No. 26-1432
Language: English
Authors: Michah W. Rothbart, Samantha Cervantes, Amy Ellen Schwartz, Annenberg Institute for School Reform at Brown University
Source: Annenberg Institute for School Reform at Brown University. 2026.
Availability: Annenberg Institute for School Reform at Brown University. Brown University Box 1985, Providence, RI 02912. Tel: 401-863-7990; Fax: 401-863-1290; e-mail: annenberg@brown.edu; Web site: https://annenberg.brown.edu/
Peer Reviewed: N
Page Count: 48
Publication Date: 2026
Sponsoring Agency: National Institute of Nursing Research (NINR) (DHHS/NIH)
Contract Number: U01NR020443
Document Type: Reports - Research
Education Level: Elementary Education
Junior High Schools
Middle Schools
Secondary Education
High Schools
Elementary Secondary Education
Descriptors: COVID-19, Pandemics, Educational Finance, Educational Policy, Declining Enrollment, Racial Composition, Institutional Characteristics, Urban Schools, Expenditure per Student, Teacher Student Ratio, Class Size, Attendance, Teacher Employment, Elementary Schools, Middle Schools, High Schools
Geographic Terms: New York (New York)
Abstract: This study evaluates the fiscal and academic consequences of New York City's hold harmless policy during COVID-19, which aimed to stabilize school expenditures amid unexpected enrollment declines by restoring schools' funding up to initial levels. We examine how school racial composition predicts whether or when schools receive hold harmless "treatment" and assess the impact of hold harmless on financial resources, staffing, and student outcomes, exploring heterogeneity by timing of policy announcement. Although schools with higher White student shares were no more likely than those with higher Hispanic or Black shares to receive hold harmless funds, schools with higher Black shares that did receive them saw larger per-pupil allocations due to deeper enrollment losses. Overall, hold harmless schools experienced significant increases in per-pupil spending, and reduced pupil-teacher ratio and class size, while maintaining the size of the teaching workforce. We find hold harmless had no effect on attendance or chronic absenteeism in 2021 or 2022, but improved both in 2023, when it was announced earlier. Although funds often rolled over to later years, we find no corresponding gains in student outcomes. Overall, the policy effectively preserved school-level spending and staffing -- as intended -- with some improvements in student outcomes when announced early.
Abstractor: As Provided
Entry Date: 20260101
Accession Number: ED681863
Database: ERIC
Description
Abstract:This study evaluates the fiscal and academic consequences of New York City's hold harmless policy during COVID-19, which aimed to stabilize school expenditures amid unexpected enrollment declines by restoring schools' funding up to initial levels. We examine how school racial composition predicts whether or when schools receive hold harmless "treatment" and assess the impact of hold harmless on financial resources, staffing, and student outcomes, exploring heterogeneity by timing of policy announcement. Although schools with higher White student shares were no more likely than those with higher Hispanic or Black shares to receive hold harmless funds, schools with higher Black shares that did receive them saw larger per-pupil allocations due to deeper enrollment losses. Overall, hold harmless schools experienced significant increases in per-pupil spending, and reduced pupil-teacher ratio and class size, while maintaining the size of the teaching workforce. We find hold harmless had no effect on attendance or chronic absenteeism in 2021 or 2022, but improved both in 2023, when it was announced earlier. Although funds often rolled over to later years, we find no corresponding gains in student outcomes. Overall, the policy effectively preserved school-level spending and staffing -- as intended -- with some improvements in student outcomes when announced early.