Because of the pandemic, many states will likely need to determine how they can best address shrinking revenues with the least harm to students, even as the needs of students have increased and the crisis has exposed gaping disparities. ExcelinEd, in partnership with a diverse group of organizations--the Aspen Institute, the District Management Group, the Edunomics Lab and TNTP--has developed these essential principles that states can use to guide and improve their K-12 budget cutting decisions. Adherence to these principles will ensure that funding cuts, if unavoidable, are equitable, student-centered and strategic. Further, states can encourage their school districts to act similarly on behalf of students. [This brief was also prepared by the District Management Group.]