Federal Education Budget Project

Friday News Roundup: Week of November 16-20

Emilie Deans — Fri, 20 Nov 2009 17:26:00 -0500

At Ed Money Watch, we discuss and analyze major issues affecting education funding. In our Friday News Roundup, we try to highlight interesting stories that might otherwise get overlooked. These stories emphasize how federal and state policy changes can affect local schools and districts.

Alabama Considers Charter Schools in Pursuit of Federal Race to the Top Funds

New York Plans to Reform Teacher Preparation Efforts

Missouri Freezes Higher Education Tuition

Florida Will Request $1 Billion in Federal Race to the Top Funds

Alabama Considers Charter Schools in Pursuit of Federal Race to the Top Funds
As Alabama grapples with a recession that continues to eat away at its education budget, the state is contemplating charter school legislation to increase the state's chances of receiving a slice of the federal Race to the Top (RttT) pie. In the past, Democratic state legislators, backed by the Alabama Education Association, have opposed charter schools. State Representative Max Gipson, a Republican, introduced charter school legislation a few years ago, but the bill never made it out of committee after opponents accused him of trying to re-segregate schools and take money away from traditional public schools. However, with a potential $175 million in federal RttT funds for Alabama, many legislators are re-thinking their stances on charter schools. By enacting charter school legislation, they hope to improve their chances of receiving a large chunk of the competitively awarded RttT funds, which will help them finance K-12 schools overall. More here...

New York Plans to Reform Teacher Preparation Efforts
The New York state Board of Regents this week approved a plan to change the way the state prepares new teachers. The reforms would place more emphasis on classroom experience and streamline the process for professionals in other fields that want to become teachers. Under the new plan, cultural institutions, research centers, and nonprofits would be allowed to certify teachers - a job currently dominated by universities. Bonuses of up to $30,000 would be awarded to teachers in high-demand fields who agree to teach in high-needs schools. The Board of Regents plans to include colleges, teachers unions, and community groups in the planning and implementation of the new plan. More here...

Missouri Freezes Higher Education Tuition
Missouri Governor Jay Nixon this week announced that the state's public four-year colleges and universities will freeze in-state tuition for the second year in a row. The agreement must still be passed by Missouri lawmakers and college and university governing boards, which appears likely. Lawmakers and higher education officials seem to agree that keeping higher education affordable is a priority. The freeze came in response to a decade of annual tuition hikes - averaging 7.5 percent - in Missouri. Though Governor Nixon and higher education officials don't yet know where the 5.2 percent in spending cuts to higher education will come from, they agree that improvements must continue to be made even while cutting costs. Ultimately, Governor Nixon says, keeping higher education affordable will be one step to turning the economy around. More here...

Florida Will Request $1 Billion in Federal Race to the Top Funds
Florida Education Commissioner Eric Smith this week announced that the state will likely apply for $1 billion in federal Race to the Top (RttT) funds - nearly one quarter of the overall budget for the competitive grant program. According to guidelines released by the U.S. Department of Education, Florida and two other states are eligible to receive between $350 million and $700 million if they are awarded grants. But states may apply for higher amounts if they believe their proposals warrant it. Union and school district officials are working together on plans to align Florida's system with each of the four reform areas given priority in RttT awards. The reforms will likely include proposing teacher merit pay systems, getting involved in a consortium with other states on student achievement standards and testing, developing more rigorous teacher certification exams, and establishing school reforms like extended school days or year, or expanded full-day pre-K. Because of these plans and existing reforms, the state appears to be well positioned to win a large chunk of federal RttT funds. More here...

Briefly Noted

Kansas regents hold meeting to outline higher education budget issues.

Friday News Roundup: Week of November 9-13

Emilie Deans — Fri, 13 Nov 2009 15:57:00 -0500

New Mexico Lawmaker Proposes Budget Fix Using Endowment Fund

Colorado Cuts to Education Bigger than Expected

More Cuts for South Carolina Schools

New Mexico Lawmaker Proposes Budget Fix Using Endowment Fund
New Mexico State Senate Majority Leader Michael Sanchez this week laid out a proposal to tap into the state's $9 billion Land Grant Permanent Fund to help balance the state's budget. The fund makes yearly payments to school districts, universities, hospitals, and other public institutions. Sanchez's plan would take $2 billion from the fund to pay for these and other critical government operations and minimize tax hikes over the coming years. Sanchez also seeks to bolster state finances for projected state deficits for next year and potentially slow economic growth over the next few years. The state already needs $400 million to fill a hole in the fiscal year 2011 budget. Opponents to the proposal claim that removing the money will slow the fund's growth and result in smaller payments to schools and the other beneficiaries later. If Sanchez's proposal passes the state legislature, voters will have to approve it in November because it includes a change to the state's constitution. More here...

Colorado Cuts to Education Bigger than Expected
Cuts to spending on K-12 education in Colorado for fiscal year 2011 will total 6.1 percent despite Governor Bill Ritter's claims that it is only 4.6 percent. According to a calculation by the Colorado Department of Education, cuts to spending on education in the fiscal year 2011 budget total $374.1 million, or 6.1 percent of what schools would have normally expected for that fiscal year. Governor Ritter's calculation, they say, made cuts appear smaller because it was done using the current fiscal year 2010 budget as a baseline. The cuts to spending on schools will likely mean increasing class sizes, teacher and staff layoffs, salary cuts or freezes, and possible service reductions. However, categorical funding for transportation, special education, and some other programs will not be affected by the proposed cuts. Funding for full-day kindergarten programs is also expected to hold steady. For higher education, Governor Ritter's plan includes a modest $1.98 million growth in spending despite a projected decline in support from federal stimulus funds. The spending growth would come from a proposed 9 percent tuition increase. More here...

More Cuts for South Carolina Schools
The South Carolina Board of Economic Advisors this week released a reduced estimate of state revenue, citing concerns over the nearly half million people in the state who are unemployed. Given this new estimate, Governor Mark Sanford told the state's K-12 schools, colleges, and prisons to prepare to cut another $120 million from their fiscal year 2010 budgets. This comes on top of a $328 million cut from the current budget to these services over the summer. It is not yet clear where exactly cuts will come from at the state level, so school districts are waiting for more information before they make any final decisions on where to trim their budgets. More here...

Briefly Noted

Alabama Board of Education endorses proposed "plan of survival" for K-12 schools.
Illinois budget cuts squeeze the state's universities.

Friday News Roundup: Week of November 2-6

Emilie Deans — Fri, 06 Nov 2009 17:43:00 -0500

As Enrollment Grows in Utah, Budget Shrinks

Arizona Budget Shortfall Forces Cuts

Pennsylvania Universities Anxiously Await Decision on Gambling Taxes

Nebraska Legislators Propose Cuts to School Aid

Kentucky Higher Education Council to Vote on Budget Plan

As Enrollment Grows in Utah, Budget Shrinks
Utah's State Office of Education this week released data showing that enrollment in the state's public K-12 schools increased by 12,260 students since last fall. This growth came at the same time the state's education budget decreased by 5.2 percent from the previous year, thanks to the economic downturn. These numbers mean that schools will have to cut services for students, and per pupil expenditures will go down. And the forecast for next year doesn't look much better - the State Office of Education predicts a similar increase in K-12 enrollment with no increase to the budget. The state may need to dip into its rainy day fund just to maintain spending levels from the current fiscal year. More here...

Arizona Budget Shortfall Forces Cuts
Arizona Governor Jan Brewer is planning a mid-November special legislative session to address the state's $2 billion budget shortfall. Governor Brewer has been working with House and Senate leaders to come up with a package of spending cuts to make up for a $500 million revenue shortfall. Most of the cuts will reflect those proposed in a package previously vetoed by Governor Brewer, including much of the annual inflation adjustment for K-12 public schools and funding for purchases of computers, textbooks, and other equipment. Additional cuts will be made during a second special legislative session and during the 2010 regular session, which begins in January. More here...

Pennsylvania Universities Anxiously Await Decision on Gambling Taxes
Lawmakers in Pennsylvania have reached a stalemate over details of a bill to legalize and tax gambling table games, like poker, at the state's existing slot-machine casinos. Last month's budget agreement between Governor Ed Rendell and state legislators assumed passage of the bill to raise $200 million in tax revenues. This revenue would contribute to university funding, without which the universities could have to raise tuition for the 2010 spring semester. The universities are pressing the legislature to ensure that they will receive the full amount they've been promised as tuition bills will go out on November 13^th. More here...

Nebraska Legislators Propose School Aid Cut
In a special budget cutting session of the Nebraska state legislature, the State Senate Education Committee proposed cuts totaling about $47 million to schools for fiscal year 2011. About half of the savings would come from limiting to 1 percent the annual funding increase for most school districts. An additional $24 million in cuts would be made by reducing state aid to school districts based on the number of teachers with graduate degrees. The Education Committee's proposal—one of seven introduced on the first day of the special budget-cutting session—came as part of Governor Dave Heineman's plan to cut about $336 million from the state's current two-year budget plan. More here...

Kentucky Higher Education Council to Vote on Budget Plan
The Kentucky Council on Postsecondary Education, the state's coordinating agency for higher education, was scheduled to vote this week on a budget recommendation calling for a $2.1 billion increase in state spending on higher education in the 2011-2012 two-year budget. The increase includes $70 million in each fiscal year to replace federal economic stimulus funding included in the current fiscal year 2010 budget. It also includes a request for a $50 million fund for higher education institutions to promote student retention and graduation rates. This request comes as state officials brace for a difficult budget session - revenue to the state's General Fund is expected to fall about $1 billion short of the $9 billion required for the current fiscal year. Governor Steve Beshear told higher education officials that the upcoming budget will be difficult, but that access to higher education for all Kentuckians is a priority. More here...

Friday News Roundup: Week of October 19-23

Emilie Deans — Fri, 23 Oct 2009 19:02:00 -0400

Michigan Governor Signs Education Budget, Vetoes Some School Funding

Education Not Spared in Iowa Governor's Budget Cuts

Lawsuits Filed Over Hawaii Teacher Furloughs

Massachusetts Disputes Pew Report on Early Education Spending

Mississippi Contemplates School District Consolidations

Michigan Governor Signs Education Budget, Vetoes Some School Funding
This week, Michigan Governor Jennifer Granholm signed the state's education budget for fiscal year 2010, but not without a line-item veto of $51 million in supplemental payments for the state's 39 largest and highest spending school districts. Governor Granholm said she was forced to veto the spending because the legislature did not provide enough revenue to pay for the budget. Michigan Senate Republicans say that there was sufficient funding for the payments, and that the Governor is using it as an excuse to push for higher taxes. Separately, The State Board of Education has moved its November 10meeting up to October 26 to address the 2.9 percent overall cut in the education budget for the 2010 fiscal year. More here and here...

Education Not Spared in Iowa Governor's Budget Cuts
Iowa Governor Chet Culver this week announced a 10 percent across-the-board budget cut for state agencies. In addition to laying off 791 government employees and leaving 529 positions vacant, departments will have to make cuts to programs and services. Education is no exception. As a result, fewer students will be able to attend preschool for free, college financial aid will be cut, and school lunch prices will go up. Governor Culver wants to force school districts to spend their reserves before raising property taxes to cover state aid cuts. However, many school districts won't have enough money in their reserves to cover the cuts. Some of these districts may resort to cutting programs rather than raising taxes. Community colleges are also seeing cuts in state aid, forcing them to cut services, layoff staff, or hike tuition. Governor Culver has warned that more cuts are likely next year. More here...

Lawsuits Filed Over Hawaii Teacher Furloughs
Two separate groups in Hawaii have filed lawsuits over teacher furloughs approved by the state Department of Education and the Hawaii State Teachers Association. The groups claim that the agreement, which requires 17 furlough days in the current school year and the 2010-11 school year, would violate Hawaii's obligation to provide 180 days of schooling to resident children, five days a week. One lawsuit, a class-action case representing all Hawaii public school students, claims that the furloughs disproportionately affect children at certain income levels and of certain racial and ethnic groups. The second lawsuit, filed on behalf of the state's special education students, claims that the furloughs would cause prohibited changes to special education. State Attorney General Mark Bennett believes the suits are without merit, and will fight them. More here...

Massachusetts Disputes Pew Report on Early Education Spending
According to a report released this week by the Pew Center on the States (Pew), Massachusetts is one of 10 states that made cuts to its prekindergarten spending this year. Pew reported that the state cut aid for its universal prekindergarten program by $2.9 million, the federal Head Start program by $1 million, and scholarships, mental health services, and other "quality improvements" by $5.5 million - a combined 22 percent of the pre-kindergarten budget. State officials claim that the report does not accurately measure the state's investments in prekindergarten. They note that the Pew report focuses on three areas and doesn't take into account the overall budget of the Department of Early Education and Care, which fell only by 3.4 percent. Officials at a Boston advocacy group noted that 70 percent of the state's children aged 3 to 5 are in some form of preschool, and that the state is in the process of improving the quality of the available programs. More here...

Mississippi Contemplates School District Consolidations
Mississippi State Representative George Flaggs this week questioned whether the state can afford its 152 school districts and eight public universities. He suggested that the state consider consolidating school districts in order to save money. Interim state superintendent John Jordan said that, while he understands that these are difficult economic times, he hopes lawmakers will study the impact of consolidations before moving forward. Several school districts in the state have performed voluntary consolidations, providing an opportunity to examine the academic and financial impact of such efforts. Because the state's continuing drop in revenue forced Governor Haley Barbour to slash $172 million from the state budget last month, lawmakers are considering options, like consolidation, that they wouldn't have put on the table previously. More cuts are expected as Mississippi's financial situation becomes clear. More here...

Briefly Noted

Kansas faces $70 million education budget shortfall.
Over $115 million transferred to North Carolina Education Fund from lottery.

Friday News Roundup: Week of October 12-16

Emilie Deans — Fri, 16 Oct 2009 17:20:00 -0400

Study Finds that California Furloughs Don't Save As Much As Expected

Big Ten Schools Suffer from State Budget Cuts

Louisiana State Board of Elementary and Secondary Education Passes Tentative Budget

Pennsylvania Finalizes Budget, School Districts Adjust

Study Finds that California Furloughs Don't Save As Much As Expected
According to a study by the Center for Labor Research and Education at the University of California at Berkeley, California's three-day-per-month furloughs for state workers aren't saving as much as expected. The program was expected to save the state $1.3 billion this year, but the study predicts that the savings will be a little more than half that. The study also notes that the savings will decline as the real costs of furloughs come to light over the next few years. According to Ken Jacobs, chairman of the group that conducted the study, the state would actually save more money over the long term by imposing only one furlough day per month. More here...

Big Ten Schools Suffer from State Budget Cuts
Universities in the Big Ten conference are scrambling to make cuts to their budgets as state aid dwindles. While the University of Michigan and Ohio State University have managed to avoid cuts this year, the other schools in the conference are facing cuts ranging from about 1 percent to more than 5 percent for the current fiscal year - and more cuts loom for next year. Some schools, like Penn State and the University of Illinois, are depending on state aid to keep budget cuts low for this year. At Perdue, where 5.3 percent of the budget will be cut in the current fiscal year, faculty will not receive merit salary increases, among other cuts. Other schools are halting construction projects and shutting down during breaks from classes. Many universities still have not determined all the cuts necessary to avoid shortfalls. More here...

Louisiana State Board of Elementary and Secondary Education Approves Tentative Budget
The Louisiana State Board of Elementary and Secondary Education (BESE) this week approved a $3.276 billion preliminary education budget for fiscal year 2011. State regulations require agencies to submit preliminary budgets by November 5^th so that the governor's office can begin assembling an executive budget. Changes can be made to the budget later in the process, and many Louisiana school district superintendents believe changes are necessary. The approved K-12 budget recommendation includes a 2.75 percent increase, a growth factor that is normally included in the school funding formula, but which state superintendents waived in the current fiscal year to help the state avoid deficit spending. But now superintendents believe they will need more than the 2.75 percent, or $62.25 million, increase to keep schools running, especially given decreasing local tax revenues and significant increases in retirement and health care benefits for teachers and other school employees. The BESE will be able to make changes to its recommendations when firmer financial data are available before the final budget goes before the state legislature. More here...

Pennsylvania Finalizes Budget, School Districts Adjust
After a standoff between Governor Ed Rendell and the state legislature over spending priorities, Pennsylvania finalized its state spending plan on October 9 - 101 days after the deadline. School districts, on the other hand, had to approve their 2009-10 budgets on time, over three months ago. As a result of the state's delay, district leaders had to estimate state contributions to K-12 education. While some districts planned cautiously, others overestimated their chunk of the $27.8 billion education budget, and must find ways to scale back. Thanks to federal stimulus dollars, however, the state's education budget actually increased by $300 million, or about 5.7 percent, to provide increased subsidies and grants for schools. Despite the influx in federal money, some programs didn't receive increases, while others were eliminated completely. The state will freeze spending on special education, Pre-K Counts, Head Start, and Accountability Block Grants at the 2008-09 level, while Classrooms for the Future, Teen Pregnancy and Parenthood, and Safe and Alternative Schools programs will be eliminated. More here...

Briefly Noted

Hawaii furloughs won't close gaps - more layoffs may loom.
Florida governor warns agencies to brace for cuts as Education Department requests more.

Friday News Roundup: Week of October 5-9

Emilie Deans — Fri, 09 Oct 2009 18:45:00 -0400

New York Governor Slashes Higher Education Budget

Florida Lawmaker Asks Attorney General to File School Funding Lawsuit

Indiana Governor Hints that Education Cuts Are Likely

Higher Education Costs Continue to Rise in Rhode Island

New York Governor Slashes Higher Education Budget
New York Governor David Paterson this week initiated major midyear budget cuts to higher education, state prisons, and public health, among other programs. The State University of New York (SUNY) saw its budget cut by $90 million, and the City University of New York lost $53 million. The $90 million cut from the SUNY budget represents 18 percent of the cuts to all agencies - a burden that some believe is unfair for to the university system and its students. More here...

Florida Lawmaker Asks Attorney General to File School Funding Lawsuit
Florida State Senator Dan Gelber is asking Attorney General Bill McCollum to sue the state legislature and governor for providing inadequate levels of funding for education. Senator Gelber, who is running for Attorney General, says the state is failing to live up to its constitutional requirement that "adequate provision shall be made by law for a uniform, efficient, safe, secure, and high quality system of free public schools that allows students to obtain a high quality education." The state increased per-pupil funding to $6,873 in 2009-2010, up from $6,844 in the previous school year, but Senator Gelber and others claim that the increase still isn't enough to provide an adequate education to all students. Though Attorney General McCollum agrees that education is a priority, he is unlikely to go against his own Republican party to criticize the budget. More here...

Indiana Governor Hints that Education Cuts Are Likely
Governor Mitch Daniels of Indiana has warned that budget cuts are likely if state tax collections continue to slide. His comments came on the heels of the state's September revenue report, which showed that the state's tax collection projections were $165 million higher than actual revenue. This news, in combination with the $254 million shortfall for the first quarter of FY 2010, paints a dire picture for the state's finances. Because K-12 education makes up about half the state budget, it is likely to see serious cuts if revenues continue to be low. A one percent cut to the state's K-12 education budget would save the state $60 million. The current state budget gave schools a 1.1 percent average annual increase for FY 2010 and a 0.3 percent boost in FY 2011. Those numbers do not include federal stimulus dollars. More here...

Higher Education Costs Continue to Rise in Rhode Island
The Rhode Island Board of Governors for Higher Education voted this week to increase tuition and fees at the state's public colleges by 9.9 percent in 2010-2011. In-state students will face increases at the state's three public institutions for the second consecutive year. Since 2004, tuition and fees have increased 64 percent at the University of Rhode Island, 75 percent at Rhode Island College, and 72 percent at the Community College of Rhode Island. At the same time, family incomes have risen at much slower rates. Median family state income grew only 11.3 percent between 2005 and 2008. The state's public higher education institutions have taken steps to try to prevent such steep increases, including leaving faculty positions vacant and closing down small programs, but they haven't been able to make up for the $36 million the state has cut from the higher education budget over four years. If more cuts are made by the state, the Board of Governors will have to explore additional strategies to cut spending. More here...

Friday News Roundup: Week of September 28-October 2

Emilie Deans — Fri, 02 Oct 2009 19:37:00 -0400

Michigan Governor to Veto Budget Cuts

States Are Not Using Stimulus to Boost Aid for Schools

Education Professionals Ask Illinois to Fund Programs

Alabama Budget Cuts Loom as Tax Revenues Shrink

Michigan Governor to Veto Budget Cuts
Michigan Governor Jennifer Granholm vowed this week to veto a budget approved by the state legislature that includes deep cuts. The budget deal brokered in the state legislature after a two hour government shutdown would cut nearly $1.3 billion from the state's earlier agreed upon fiscal year 2010 budget. The cuts include a 2.9 percent reduction in the K-12 budget and deep cuts to Michigan's higher education Promise Grants for low income students. Alternatively, Governor Granholm has proposed cutting $2.2 billion in spending from the budget and increasing taxes by $1.1 billion. State Republicans insist they will not approve any tax increases. The current budget crunch is only one indicator of the state's flawed tax system, which has led to frequent budget shortfalls and two state government shutdowns in three years. State lawmakers have introduced bills in both Houses which would require members to forfeit their pay each day the budget is delayed. The state has 30 days to come to an agreement and finalize a budget deal. More here...

States Are Not Using Stimulus to Boost Aid for Schools
A U.S. Department of Education official says states are not using federal economic stimulus money as Congress and the Obama administration intended. Instead of using the additional funds to supplement state aid to schools in accordance with federal guidance, some states are simply using the money to plug budget holes. The inspector general for the Department of Education singled out Pennsylvania, Massachusetts, and Connecticut as states that have cut their investments in education and replaced them with stimulus money. Pennsylvania has yet to finalize a state budget, leaving the state's education funding up in the air. In Massachusetts, officials argue that they have complied with the guidance given them by federal officials. These officials argue that federal rules and regulations only require that states use economic stimulus funds under the State Fiscal Stabilization Fund to maintain education funding at 2006 levels, which allowed many states to make significant cuts to education. More here...

Education Professionals Ask Illinois to Fund Programs
Members of the Illinois State Board of Education's (ISBE) Finance and Audit Committee are seeking advice through a series of hearings on what the fiscal year 2011 budget should include. The participants requested that the state board provide funding for programs and grants that benefit students and schools. This year, many education programs have been cut or eliminated, and ISBE must make recommendations to the state for what to fund next year. The experts who testified asked the ISBE to restore programs for textbooks, agriculture, consumer education, career and technical education, early childhood, and truancy prevention. More here...

Alabama Budget Cuts Loom as Tax Revenues Shrink
Appropriations for Alabama's fiscal year 2010 general and education trust funds, which became law this week, are already subject to cuts as the state's revenue shrinks more than was projected earlier. Alabama state law requires Governor Bob Riley to declare proration - across-the-board-cuts - if the state's budgeted spending outpaces revenue. Cuts to the $6.24 billion education trust fund budget could mean teacher layoffs and salary freezes. School districts may also have to turn to shrinking reserves or loans to survive the school year. Cuts won't be finalized until state officials finish calculating the state's tax receipts next week. More here...

Briefly Noted

Iowa poised to bend rigid teacher rules.

Ed Projections Suggest Shifting Enrollment Patterns

Emilie Deans — Thu, 01 Oct 2009 14:57:00 -0400

Last week, the National Center for Education Statistics (NCES) released "Projections of Education Statistics to 2018," a report predicting enrollment and expenditure increases in education over the coming decade. These projections can provide important information to states and school districts as they seek to invest new funds available through the American Recovery and Reinvestment Act. Strategic investments today can help states and school districts cope with rapidly increasing populations, postsecondary institutions prepare for the shifting needs of those seeking higher education, and policymakers rethink investments to better serve schools and students.

PK-12

According to the NCES study, public school enrollment is expected to increase by 9 percent between 2006 and 2018 from 55.3 million to 59.8 million students. This increase will occur mostly in the South and West, with the greatest increases in Arizona, Nevada, and Texas. The Northeast is projected to see a decrease, led by Rhode Island and New York. Nationally, the greatest enrollment increases are expected to occur in the PK-8 grades.

The report predicts that the number of public high school graduates will increase 11 percent between the 2005-06 and the 2018-19 school years. Increases are primarily expected in the South and West, with Nevada, Utah, and Georgia experiencing the largest increases. Seventeen states and the District of Columbia are predicted to see decreases in graduates, led by Rhode Island and North Dakota.

NCES also predicts that total expenditures for K-12 education will increase 36 percent between 2005-06 and 2018-19 to $626 billion, while per pupil expenditures are expected to increase 24 percent to $11,600.[1]

These changes in student population are significant for several reasons. States like Arizona, Nevada, Texas, and others with rapidly growing populations are likely to experience significant stresses on state and local budgets as school enrollments increase. Additionally, traditional education funding sources, like property taxes, have become less stable and reliable in the recent economic downturn. To ease future pressure on state and local budgets, all states, but especially those with growing populations, must begin to think about new and more sustainable ways to fund education or commit to spending more funds on education from all sources.

Postsecondary

Enrollment in postsecondary institutions is predicted to increase between 2007 and 2018 to 20.6 million students from 18.2 million. NCES predicts that undergraduate enrollment will increase by 12 percent, with larger increases in graduate and first-professional (what is that? That's a little jargony) degrees. Public and private institution enrollments are expected to grow at the same rate, 13 percent.

Between 2006-07 and 2018-19, the number of Associate's degrees conferred is projected to increase by 25 percent. In the same time period, the number of Bachelor's degrees conferred is expected to grow by 19 percent.

This dramatic increase in students seeking Associate's degrees can be partly attributed to the current economic recession. Workers are seeking additional skills to qualify them for higher-paying jobs or exiting the workforce temporarily due to lack of opportunities. Additionally, with the cost of higher education continuing to rise despite the economic downturn, it's no surprise that many students are turning to community colleges for postsecondary training. Students who otherwise may have pursued Bachelor's degrees will be able to attend community college for a fraction of the cost.

This brings to light a greater issue facing higher education in the future. If the cost of attending a 4-year institution continues to rise at the rate it is now, the additional 19 percent of degree obtainers are likely to take on potentially hundreds of thousands in student debt. This model is likely to prove unsustainable in the future unless 4 year institutions are able to cut costs or lower tuition through new tactics like virtual education.

Conclusion

States, school districts, institutions of higher education, and policymakers should heed these predictions - enrollments at all levels are expected to increase, demanding greater investments of resources and funds.

Luckily, there are some ways states, localities, and institutions of higher education can prepare for the inevitable:

State and federal policymakers should begin exploring new ways to fund public education that do not rely entirely on property taxes and other variable sources of revenue. This change can also ensure greater equity in funding among schools and school districts.
States and school districts in regions with rapidly growing populations should begin creating infrastructure to handle increases in enrollments like school facilities and highly qualified teaching forces.
Postsecondary institutions of all kinds must either find ways to keep costs down or dramatically rethink how they provide instruction to students so that higher education is attainable for all high school graduates.

[1] Expenditures are in constant 2006-07 dollars.

Friday News Roundup: Week of September 21-25

Emilie Deans — Fri, 25 Sep 2009 18:04:00 -0400

No Middle Ground on New Mexico Schools Budget

Oklahoma Amendment Could Mean Tax Hikes

Ohio Slots Ruling Puts Budget Up in the Air

California Community Colleges will Receive Less Stimulus Money than Expected

No Middle Ground on New Mexico Schools Budget
New Mexico Governor Bill Richardson held a closed-door meeting earlier this week with state legislators to develop a plan to patch $400 million in holes in the state budget. Although Governor Richardson has refused to cut any funding from the state K-12education budget, lawmakers have suggested that such cuts will be necessary to offset revenue shortfalls. They have suggested loosening certain state mandates, such as caps on class sizes, so that school districts can have more flexibility in spending. Though Governor Richardson has not given any ground on cuts to education, he has agreed to talk with education leaders to determine if schools can absorb some cuts without hurting classroom instruction. Elementary and secondary education currently account for 45 percent of the state's budget. More here...

Oklahoma Amendment Could Mean Tax Hikes
Oklahoma lawmakers have proposed a constitutional amendment requiring a dramatic increase in state spending for education. The Helping Oklahoma Public Education (HOPE) amendment would require the state to spend an additional $850 million over the next three years to meet the regional per-pupil spending average - but some worry that the increase could mean tax hikes. The Oklahoma Education Association, the state's largest teachers union, says that normal growth in the state's economy and tax revenue would be sufficient to cover the increased funding for education. The HOPE initiative seeks to amend the state's historically low investment in education, including the lowest per-pupil expenditure in its seven-state region. Voters will decide on the measure in November 2010. More here...

Ohio Slots Ruling Puts Budget Up in the Air
The Ohio state education budget has a $933 million hole in it thanks to a state Supreme Court's recent ruling that delays a decision on slot machines at state's race tracks. The current budget, approved in July, assumes revenue from slot machines will help keep public education and other state services up and running. But the Ohio Supreme Court ruling means that machines can't be installed until voters agree to install them - a vote that will not occur until May 2010 at the earliest. Though Governor Ted Strickland has taken a hard stance against raising taxes, he refused to rule out tax hikes in light of the ruling. Ohio Senate Republicans say that Governor Strickland could also cut the money from the budget approved in July, noting that they made suggestions for cuts in their budget proposal earlier this year. Governor Strickland said he has not yet made a decision about how to proceed. More here...

California Community Colleges will Receive Less Stimulus Money than Expected
An error in California's planning for fiscal year 2010 will mean less money for community colleges than the state initially expected to receive under federal economic stimulus programs. The state legislature expected $130 million in federal stimulus money for community colleges, but the two-year institutions will only actually receive $35 million this fall, with an additional $4 million likely next fall. The additional money would have helped community colleges avoid cuts to programs for low income and disabled students, but now many of these programs may be cut altogether. With enrollment at record levels and no additional money expected over the coming years, there is little college leaders can do to keep these programs running. It's not clear what caused the $100 million planning mistake. More here...

Briefly Noted

Connecticut special education will benefit from stimulus money.

Friday News Roundup: Week of September 14-18

Emilie Deans — Fri, 18 Sep 2009 19:28:00 -0400

Virginia Prepares for Cuts to Higher Education Budget

Michigan Budget Deal Would Mean Cuts for Education

Funding Cuts For DC Area Colleges Mean Higher Tuition, Fewer Classes

Massachusetts Lawmakers Seek to Review State Education Funding Formula

Virginia Prepares for Cuts to Higher Education Budget
Earlier this week, Virginia's finance secretary outlined the details of Governor Tim Kaine's proposed $196.8 million cut from the state's general fund appropriations for public colleges and universities. The cuts will be partially offset by an infusion of $91.5 million in federal stimulus funds for the 2010 fiscal year. However, Virginia's two-year colleges would still see a 7 percent cut from 2009 levels overall and four-year institutions would see an 8 percent cut. Virginia community college enrollment continues to rise even as the institutions face budget cuts. The Virginia Community College System estimates that its full-time equivalent student count is up by about 13 percent statewide, and 22 of its 23 schools have broken enrollment records this fall. Four-year institutions in the state are also struggling with how to absorb cuts without affecting instruction or financial aid. More here...

Michigan Budget Deal Would Mean Cuts for Education
Michigan lawmakers made a deal this week on a state budget framework for fiscal year 2010. The budget includes $1.2 billion in cuts from 2009 levels even after including $2.8 billion in federal stimulus money. Conference committees will begin working to sort out exactly how these cuts will be made, and it remains to be seen whether Governor Jennifer Granholm will agree to the deal. Governor Granholm had previously proposed a budget with fewer cuts and over $600 million in new fees and taxes. Democrats in the state legislature say they won't support a deal with deep cuts to public safety, education, and health care. However, the proposed cuts to education are about the same as those proposed in a Senate budget from June. That budget eliminated the Michigan Promise college grants - grants that provided up to $4,000 toward tuition for eligible college students. No decision has been made as to how the education budget will be trimmed for this deal. More here...

Funding Cuts For DC Area Colleges Mean Higher Tuition, Fewer Classes
State colleges in the greater Washington, DC area will get less support from state coffers as 2010 budgets are trimmed. Virginia Governor Tim Kaine announced a 15 percent reduction in state aid this week. Though the cuts will be partially offset by federal economic stimulus funds, students are already feeling the pinch. They have reported increased class sizes, fewer course offerings, and higher tuition and housing costs. More classes are being taught by adjunct faculty, and students at community colleges are being turned away for lack of space. Maryland has fared better than most - Governor Martin O'Malley froze tuition in the state university system for four years, and has shielded colleges from heavy cuts. The University of the District of Columbia, the District's only public university, has been spared any budget cuts. More here...

Massachusetts Lawmakers Seek to Review State Education Funding Formula
Massachusetts lawmakers are calling for a review of the state's education funding formula. State Senator Karen Spilka proposed legislation to put together a committee of public officials and an independent contractor to carry out the review. Though the bill's backers, including Senator Spilka, say they don't expect state education funding to increase any time soon because of the economic crisis, they do believe the $600,000 study is essential to prepare for the future. Because the last review of the state's education system was done in 1991 and a state lawsuit that found that many school districts had inadequate resources, supporters believe the review is necessary. Opponents worry that the study could lead to a lawsuit should the result suggest that more should be spent on education. More here...