Failing to replace this skilled workforce could lead to budgetary crises, diminished operational capacity, and immense downstream consequences for students—from negative learning outcomes to school closures.
In total, we project that the U.S. will need an additional 5.25 million workers with postsecondary education to meet future labor-force needs—and failing to do so will have far-reaching consequences for the economy.
Although skills shortages will affect hundreds of occupations across different industries, projected shortages within the K–12 system are particularly concerning given the enormous importance of education in shaping short- and long-term outcomes for children and their families. Our report highlights that the U.S. faces a massive shortage of 611,000 educators through 2032, including elementary and middle school teachers, secondary school teachers, postsecondary teachers, special education teachers, and other instructors and teaching assistants. But another key piece of the puzzle is the expected shortfall of accountants and auditors (226,200); financial managers (241,200); bookkeeping, accounting, and auditing clerks (189,600); and payroll and timekeeping clerks (21,600). These four occupational categories represent workers in numerous industries, not just K–12 education. However, the sheer magnitude of the shortage of skilled financial and personnel management professionals suggests that school districts nationwide will face staffing challenges well beyond the educator shortfall.
School business officials (SBOs) serve a critical role in managing day-to-day operations and multi-year planning. They evaluate enrollment trends and staffing needs, budget for facilities updates and maintenance, report and audit all income and spending, and ensure compliance with state and federal education grant requirements—and their work is especially important as school districts are increasingly forced to do more with less. Between 2020 and 2021, the federal government authorized more than $276 billion in emergency relief funds for schools navigating the chaos and uncertainty of the pandemic. These Elementary and Secondary School Emergency Relief (ESSER) funds allowed school districts to retain educators, expand digital access amid the abrupt shift to remote learning, hire behavioral health staff to support students, and help schools safely reopen. Yet with the expiration of pandemic-era federal funding, school districts are now facing enormous budget shortfalls and staffing challenges. SBOs will be key to navigating these challenges using their expertise in resource allocation and management and long-term planning for sustainability.
Given the fiscal knowledge and technical training required for SBO roles, school districts must start planning now to avert a future workforce crisis. Our report recommends significant federal investments to support increased postsecondary attainment, especially because such a large share of the projected SBO shortage is among bachelor’s degree holders.
We estimate that accountants and auditors; financial managers; bookkeeping, accounting, and auditing clerks; and payroll and timekeeping clerks face a projected overall shortage of 678,600 workers by 2032. Eighty-six percent of this shortage will be among middle-skills workers (i.e., those with an associate’s degree, a vocational certificate, or some college but no degree, with 244,100 shortages) and workers with a bachelor’s degree or higher (342,300 shortages). Though we do not have sufficient data to disaggregate these occupations by sector (e.g., financial and business professionals working in K–12 education), we assume the majority of the SBO shortage will involve positions requiring at least some postsecondary education due to the profession’s technical and administrative demands.
Potential strategies to address these shortages could include school districts partnering with local area postsecondary institutions to encourage entry into these occupations; school districts developing skills-based training pathways for these careers that don’t necessarily require an advanced degree; and state governments waiving CPA exam fees or other training costs for individuals who plan to work for a school district.
With public schools facing declining enrollment and significant federal funding cuts, it is more important than ever for school district leaders to invest in and prioritize SBO succession planning over the next decade and beyond. Failing to replace this skilled workforce could lead to budgetary crises, diminished operational capacity, and immense downstream consequences for students—from negative learning outcomes to school closures. State and local governments must expand access to postsecondary education and training opportunities in finance and accounting to ensure that job seekers can fill critical school business roles and sustain successful school systems that help our communities thrive.