By next year about a billion dollars in stimulus funds will have been pumped into Massachusetts school districts. The funds have avoided lost jobs and program cuts. But when the money runs out, schools could face a grim scenario.

The Revere school system was making great strides in achievement and test scores. But the struggling economy put students at risk. $5 million of federal stimulus money averted massive layoffs and budget cuts.

"It saved a year of solid education for every child at least, if we didn't we would have 50, 60 teachers less." said Paul Dakin, Revere's Superintendent of schools.

Dakin said he's holding his breath about the future. By 2011, when the stimulus pipeline stops, layoffs are inevitable.

"You're looking at a couple hundred teachers out of a teaching force of about 520. And that would mean over 40 in a classroom," said Dakin.

Revere may face more changes than other places, but unless the economy makes a quick recovery, classrooms across the state could face a similar crisis.

"It's going to be like falling off a cliff in terms of funding for local schools," said Michael Widmer of the Mass Taxpayers Foundation.

The state committed just over $900 million in stimulus funds toward education. It's going fast. $412 million was used in fiscal 2009, $451 million, for next year. That leaves only $40 million for 2011. Originally, the state hoped to spread that funding over 3 years. But because of the decline in revenues, most of it has already been spent.

"I think we are going to see scores an scores of communities that are going to have to resort to layoffs next year," said Widmer.

If the economy doesn't improve, Revere schools could be facing a $15 million budget shortfall in 2011, and a giant step back in educational progress.

"Once stimulus runs out there has to be some kind of answer somewhere or we will be devastatedly impacted in Revere public schools and in communities like revere across the state, said Dakin.

Widmer said there are no easy solutions, except for increasing taxes, including income tax. But he questioned if the statehouse would consider that option, especially in an election year.

In a statement to Team 5 investigates, Jonathan Palumbo of the state's executive office of education said in part, "the intent of the funds all along was to stabilize the economy and provide districts with the funds they need to continue to manage through this economic crisis, not provide ongoing sustainable money to pay for expenses. We are committed to continuing to look at the long-term budget and make decisions that will allow us to emerge from these challenging fiscal times prepared for the future."