Wisconsin received $1.49 billion in ESSER III relief meant to help students recover from COVID-19 learning loss. IRG’s new analysis shows how districts actually used those dollars — and why many now face budget cliffs, shrinking enrollment, and tough choices ahead.

A deep review of 17,830 school district allocations reveals a clear pattern: rapid hiring, inconsistent funding, slow spending, and missed opportunities for student recovery. Keep reading for details for IRG’s Webinar TOMORROW.

Key Findings at a Glance
Districts hired aggressively — even as enrollment dropped.
More than 47,000 students lost
Staffing surged to all-time highs
Now districts face a choice: referenda or layoffs.

Too many “temporary” dollars went to permanent salaries.
41% of ESSER III went to ongoing staff costs
But ESSER was a one-time emergency fund
The result? A steep fiscal cliff.

Spending was far too slow.
6 months in: only 34% allocated
17 months in: 79% allocated
Slow planning delayed transparency and may have hindered recovery.

Funding was wildly inconsistent.
Some moderate-poverty districts received $3K–$5K more per student than some high-poverty districts.
The system lacked fairness and predictability.

Some districts made harmful choices.
Milwaukee, which received 34% of all ESSER III, spent nearly $193M on construction, including athletics upgrades and renovations at schools likely to close.
Meanwhile, basics like AC, financial system upgrades, and lead remediation were deprioritized.

Recovery lagged behind expectations.
According to Harvard University:
• 30th in reading recovery
• 16th in math recovery
Despite an unprecedented influx of federal funding.

What We Think:

“The bill has come due. Wisconsin public schools hired more staff than ever before, even as ESSER III dollars and students disappeared. Taxpayers are now forced to face two bad choices: neverending referenda or difficult layoffs.”
— Quinton Klabon, IRG Senior Research Director

“Three years ago, IRG committed to tracking every last dollar of COVID relief money. DPI’s record shows it needs that oversight. Our work ensures children get what they need to succeed.”
— CJ Szafir, IRG CEO

Read the report