HWL Insights

Think about what a school office looked like twenty years ago. Filing cabinets lining the walls. Paper gradebooks. Attendance taken by hand and calendars filled in with pencil. A fax machine humming in the corner, still somehow essential.

For decades, school districts have relied on staffing partners to help solve workforce challenges. When a teacher resigns, a substitute is needed, or a specialized therapist position opens unexpectedly, staffing agencies step in to help fill critical gaps. That approach has served districts well and continues to play an important role in supporting schools.

The alarm bells are ringing across America's school districts. In Philadelphia, school officials struggle to fill around 2,000 vacancies each year despite having over 12,000 teachers. In Clark County, Nevada, the 2024-2025 school year began with 163 special education openings out of 320 total classroom vacancies. These aren't isolated incidents; they're symptoms of a nationwide workforce crisis threatening public education. 

Special education staffing shortages remain one of the most pressing challenges for K-12 districts. With IDEA compliance being non-negotiable, districts are adopting innovative strategies to ensure students receive required services despite a shrinking talent pool.

School district Chief Financial Officers (CFOs) face mounting financial pressures in 2025. Escalating labor costs, staffing shortages, and the expiration of federal COVID relief funds are driving operating fund balances down—from 26% in 2024 to 24% this year, with further declines expected in 2026, according to Moody's Ratings. Staffing costs now exceed pre-pandemic levels, while districts struggle with teacher shortages, rising contracted service expenses, declining enrollment, and compliance risks tied to contingent labor.