April 14, 2025

The Financial Impact of Chronic Absenteeism on K–12 Districts

A Growing Crisis in Student Attendance

Chronic absenteeism — defined as missing 10 percent or more of the school year for any reason[1] — has reached critical levels in K–12 schools across the United States, presenting significant challenges for district leaders.

In states such as Texas and California, where school funding is determined by average daily attendance (ADA), elevated absenteeism rates pose substantial budgetary risks. As districts grapple with declining enrollment and the expiration of emergency COVID-19 funding, financial instability threatens to further disrupt student learning.[2] Districts will continue to find themselves forced to make difficult, and nearly impossible, budgetary decisions that can have heavy consequences for underserved students and schools.

Chronic Absenteeism and Its Financial Implications

When funding is tied to ADA, every missed school day matters. Even a small decline in attendance can result in significant losses:

Why Attendance Drives Funding Chart

As federal relief funds expire and enrollment declines, districts face mounting pressure to retain students and stabilize budgets.

How A&M Can Help

The decline in K–12 attendance and the rise in chronic absenteeism present substantial budgetary challenges for school districts, particularly in states where funding is based on ADA. A&M's Public Sector Services can help districts address these financial constraints while maintaining a high-quality education for students through our service offerings, including:

  • Rapid Fiscal Cliff AssessmentBy providing strategic consulting and financial planning services, A&M assists districts in optimizing their resource allocation and identifying alternative funding sources.
  • Attendance Maximization and Recordkeeping Framework: Our team of former educators, district leaders and government operators leverage expertise in education policy, academic achievement and data analysis to work with districts to improve attendance tracking, enhance data accuracy and deploy early-warning systems that engage students and families before it’s too late.

Chronic absenteeism isn’t just an academic issue, it’s a financial one. With millions in funding at stake, now is the time to act.

Discover how A&M can help your district improve attendance, safeguard resource and support long-term student outcomes. Read the full article to learn more.

Read the Full Article


[1] “Chronic Absenteeism and Its Impact on Achievement,” University of Delaware Center for Research in Education & Social Policy, June 2018, https://www.cresp.udel.edu/wp-content/uploads/2018/07/P18-002.5_final.pdf 

[2] “Post-Pandemic Education Challenges: Overcoming Obstacles with Expert Education Consulting Services,” Alvarez & Marsal, Accessed April 2, 2025, https://www.alvarezandmarsal.com/sites/default/files/2023-05/423413_PSS_%20Post-Pandemic%20Era%20Transformation_02.pdf 

FOLLOW & CONNECT WITH A&M