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I've been in PTA fights over this and yelled at superintendents in multiple school district meetings now. The real answer of where the money is going? Contractors.
Everything is done by contractors now because it's easy to sever and it allows organizations to focus on one thing they're good at. Do you need janitorial staff or do you need to keep things clean? Well the answer is you need to keep things clean - so how? Just pay the contractors because the school board got bribed. Sure, it turns out the contractors cost 3x the cost of a dedicated janitorial staff in the long run, but they were quicker to set up and the board wanted a turnkey solution.
That's the approach that every school board uses to answer that question. Need X - ok well we don't want to hire anyone because that makes people mad about how we use money... so we'll spend MORE money on Y over the long run for something that will be a permanently reoccurring cost. Anyone go to a school cafeteria recently? Did you get food served on disposable styrofoam treys or were you given a melamine tray and plate with reusable utensils? Just kidding I know the answer to that already. Do we provide school supplies to students at the district level? No, every man for themselves go to walmart and pay $60 for school supplies for each child with all the markup instead of letting the district buy them by the pallet and distribute at the cost of wholesale for 15% the total price of everyone wastefully purchasing their own.
Don't forget that school boards are notoriously easy to corrupt. Usually it's something relatively benign like a board member has a family member that owns a company that does contract work and they were recommended to the rest of the board. But often it is outright bribes.
But this short sighted view of how to run things is making everything expensive in America. Everything has ten fucking middlemen between you and what you want. And they're all goddamn contractors now. Cheap in the immediate but far more expensive over time. Why? Because we aren't allowed to have honest conversations about government expenses anymore. We aren't allowed to ask for real services for our children because of the short term demands of the bottom line. And when we do open up those conversations, the calculus shows the quarterly expense of hiring a permanent employee is more than maintaining the contract even though that employee is cheaper at the 5 year mark. We aren't allowed to dig ourselves out once we're stuck in the pit bought by contracts.
Edit: To expand on the list of contractors that now handle (BADLY) the same work done by roles that were traditionally employees who gave a shit and were held to a standard of care and duty:
I've heard rumblings of replacing:
About the only jobs safe are the principals and teachers and the football coach and that is only true while unions exist.
You nailed it