December 2, 2024  |  Peter Long

Post-Election Insights for Education Marketers in 2024

The Election is over... Now what?

If you’re an edtech company, educational publisher, or provider of school-related products or services, you may be wondering: What will a second Trump administration mean for schools and districts? More importantly, how will upcoming changes in the education market impact your company’s opportunities? While no one can predict the future with certainty, it’s worth exploring key insights to help your team navigate this transitional period.

Uncertainty can often feel worse than even unfavorable circumstances - because with uncertainty, making decisions and creating plans becomes a challenge. Without a clear path forward, it’s hard to address potential roadblocks or seize emerging opportunities. To help ground your strategy, here are five critical considerations for the road ahead.

1. School Budgets for 2024/2025 Are Finalized and Secure
   For the 2024/2025 school year, district budgets are already finalized and in place, offering stability for businesses operating in the education market. Most district budgets start on July 1 (and some on September 1), with the approval process typically occurring between April and June. This timeline ensures that spending plans for the current school year are locked in, leaving little room for any substantive changes until at least the 2025/2026 school year.
   Given the complexity of district budgeting - requiring approval for employment contracts, funding allocations, and operational priorities - it’s realistic to assume that significant changes in funding processes or priorities won’t take effect until the 2026/2027 school year at the earliest.
   This predictability in funding offers reassurance for companies selling EdTech, instructional materials, or other school-related products. With current budgets fixed, districts have a clear path for spending, giving businesses confidence to move forward with their plans.
2. Schools Operate on a “Use-It-or-Lose-It” Budget System
   Most schools and districts follow a “use-it-or-lose-it” mandate for their budgets. While certain capital expenses can sometimes roll over into the next fiscal year, most operational budget line items must be spent within the current year. If funds go unused, they are returned to the original funding source - whether that’s city, county, state, or federal coffers.
   Each year, tens of millions of federal dollars allocated to programs like Title I and IDEA remain unspent, underscoring the pressure districts face to use their budgets rather than save for uncertain times. This means schools and districts are incentivized to spend the money they have been allocated, rather than hold back.
   For educational marketers, this presents a valuable opportunity. Pulling back on marketing efforts in response to economic uncertainty doesn’t impact the schools’ spending - it only makes it easier for competitors to capture those opportunities. Staying visible and active in your outreach ensures your brand is positioned to win the day.
3. New Revenue Streams Are Bolstering School Funding
   Recent state constitutional ballot initiatives to legalize sports gambling, casinos, and marijuana sales are creating new revenue streams for school funding in many states. In most cases, the tax revenues generated by these activities are directly tied to education funding initiatives, providing schools and districts with additional resources.
   Unlike federal funding, which often comes with significant restrictions and red tape, state and local funds tend to be more flexible. This makes them particularly attractive for schools looking to address immediate needs without navigating extensive bureaucratic processes.
   As these new revenue sources expand, they are expected to grow significantly over the next 2 to 3 years, outpacing traditional funding increases from taxes or federal programs. For businesses operating in the education market, understanding these funding shifts can open doors to new opportunities as schools gain access to more adaptable financial resources.
4. Federal Funding Aims to Close Gaps, But Most School Funding Is Local
   We’ve shared this chart before, but it’s worth highlighting again to illustrate an important point about school funding:

   

   Graphic showing the funding disparity with increasing per-pupil spending aligned with neighborhood wealth

   
   Federal funding for schools is compensatory, designed to address disparities between wealthier districts with robust tax bases and rural or urban areas where tax revenues have declined due to business closures or relocations. These federal dollars, often tied to programs like Title I, play a critical role in supporting underfunded schools.
   However, it’s important to note that federal funding accounts for only about 10% of total school funding nationwide. The remaining 90% comes from state and local tax dollars, which are often more stable and less subject to abrupt federal changes. While federal funding changes can disproportionately impact poorer districts, the broader funding landscape relies heavily on local and state revenues.
   For educational marketers, this means that most funding decisions are made at the state and district level, where understanding local dynamics can be crucial for success.
5. Schools Keep Running, and Spending Remains Steady
   At the end of the day, 55 million students will show up to school each year, and significant spending is required to make that happen. Whether budgets increase or decrease, schools must find a way to operate - because, as the saying goes, “The show must go on.” The COVID-19 pandemic demonstrated just how adaptable the education system can be in the face of unprecedented challenges.
   In addition to operational continuity, the pandemic also brought about substantial turnover among educators. This wave of change means there’s a new generation of teachers stepping into classrooms across the country. For businesses, maintaining a strong marketing presence is critical - not just to retain engagement, but to establish your brand with these new educators as they shape their classrooms and purchasing decisions in the years ahead.

The Bottom Line: Stay in the Game

History shows that companies pulling back during uncertain times often lose out. Over MCH Strategic Data’s 100-year history, we’ve seen market corrections, economic crashes, and pandemics consistently create opportunities for new players to rise and succeed. Businesses that choose to hunker down frequently pay the price for doing so.

Educators need solutions and support - not silence. Stepping back is akin to forfeiting the game, a strategy almost guaranteed to result in loss. On the other hand, those who stay active and engaged significantly improve their chances of winning - especially when competitors step aside and leave the field wide open.

Our advice? Press on. Work with MCH Strategic Data to navigate the changes ahead and position your company for success in the evolving education market.

More Insight from MCH

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• Check out our series on Selling to Schools and Districts here!
• Plan ahead with MCH's Top 25 Education Events in 2025 - Download here

About MCH

For nearly a century, MCH has empowered educational marketers with the data, tools, and solutions needed to thrive. Our cutting-edge technology continuously updates and verifies millions of educator records, ensuring you have the most accurate information for your campaigns.

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