Healthcare costs are increasing at a rate of 15% a year, give or take. Historically, teacher contracts lean towards lower pay and an 80/20 split or so on healthcare so the district really eats a lot of that increase. Plus you have contracted cost of living raises.

So, a 2% increase in funding is typically a cut in "real" terms, even if inflation were under 2% (which it isn't), the grab bag of costs for municipalities has a lot of healthcare and very little consumer electronics, so inflation of school district costs of typically much higher than 2%.

So, basically, yeah, this is not unusual, not 1-in-a-million, go to your local school board meetings and you will likely find them struggling with budget cuts and layoffs.