Education Funding

Friday News Roundup: Week of October 26-30

Ed Policy — Fri, 30 Oct 2009 19:31:00 -0400

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.

Montana Education Officials Doubtful About Race to the Top Chances

Colorado Governor Unveils Plan to Close Budget Shortfalls

School Districts in Oklahoma Face Steep Cuts as Funding Streams Dry Up

New York Governor Proposes New Cuts as Deficit Climbs

Massachusetts Governor Makes New Cuts, Spares Education

Montana Education Officials Doubtful About Race to the Top Chances
Education officials in Montana are critical of the priorities laid out by the Obama administration for the upcoming Race to the Top (RttT) competitive grants, a new program created by the American Recovery and Reinvestment Act. Montana's Superintendent of Schools, Denise Juneau, called RttT's approach a one-size-fits-all prescription for states. While she agrees with the administration's priorities of hiring quality teachers, turning around struggling schools, and using data to inform decisions, Juneau claims that fulfilling the requirements of RttT would violate the state's constitution. Instead of making changes to state law to better accommodate charter schools and alter teacher and principal evaluations to align with RttT's priorities, Juneau and other state education officials have proposed that U.S. Education Secretary Arne Duncan change the rules of RttT. They claim that the current priorities, especially the charter school elements, don't make sense in rural states where school districts are already small. More here...

Colorado Governor Unveils Plan to Close Budget Shortfalls
Colorado Governor Bill Ritter this week unveiled a plan to close a $286 million budget shortfall, the latest in a series of shortfalls caused by the economic recession. Governor Ritter's plan would cut $145 million in funding for public colleges and universities, $37 million in grants to counties that produce oil, gas, and minerals, and $16 million in delayed Medicaid reimbursements. It also would save $27 million by adding four additional furlough days for state workers. The cuts to higher education will be replaced with funds from the American Recovery and Reinvestment Act. While the one-time federal stimulus funds will save the state from serious cuts now, critics of Governor Ritter's plan say he is putting off necessary decisions about how to reduce the state budget in the future. Colorado State Senate Minority Leader Josh Penry proposed closing Governor Ritter's energy office, and has mentioned other cuts that could lead to long-term budget trimming. Governor Ritter called these proposals "a $100,000 solution to a $100 million problem." More here...

School Districts in Oklahoma Face Steep Cuts as Funding Streams Dry Up
In Oklahoma, school districts are bracing for deep cuts as the state's revenue shortfalls lead funding streams to dry up. The state account that usually contributes more than 25 percent of the state's education funds is likely to be completely empty by the end of October, leaving the state to rely solely on tax collections for payments to districts starting in November. This comes on top of a 5 percent budget cut for the current fiscal year across all state agencies. The state is encouraging districts to try to make cuts without removing teachers from classrooms, but with such great budget reductions, officials recognize this is a tall order. School districts also may be consolidated or closed to save money. More here...

New York Governor Proposes New Cuts as Deficit Climbs
New York's state budget deficit has climbed $1.1 billion since July to $3.2 billion according to a report released this week. The state Budget Division also predicts that next year's budget will total $6.8 billion, a $2.2 billion increase from the July estimate. With this in mind, Governor David Patterson proposed wiping out $5 billion in spending over the next two years. While most state legislators supported many of the cuts, State Senate leaders opposed cuts to education and Medicaid. Governor Patterson has ordered a special session of the state legislature starting on November 10^th to address the increasing shortfall. More here...

Massachusetts Governor Makes New Cuts, Spares Education
Massachusetts Governor Deval Patrick this week cut $277 million from the state's fiscal year 2009 budget to close a growing gap between revenues and spending. This included budget cuts to state agencies, nine-day furloughs for 4,000 state employees, and layoffs for 2,000 state workers. While K-12 school aid was spared in this round of cuts, school districts may still feel the pinch as regional school bus transportation aid and state reimbursements for special education schools were cut. Charter schools will also feel the blow of a $5 million cut in reimbursements. Governor Patrick was able to use federal stimulus dollars to avoid cuts to state colleges and universities. More here...

Briefly Noted

Michigan budget nears completion, but contentious items still could face line-item vetoes.
Districts in Minnesota await outcome of Nov. 3^rd vote on school levies.

Friday News Roundup: Week of September 7-11

Emilie Deans — Fri, 11 Sep 2009 18:33:00 -0400

Arizona to Face School Funding Lawsuit

West Virginia Schools Turn to Stimulus Money to Fill Funding Gaps

Higher Education Targeted in Colorado Budget Cuts

Arizona to Face School Funding Lawsuit
An Arizona charter school advocacy group will file a lawsuit to force the state to equalize its funding formula for public schools. The charter group, filing the suit on behalf of several families, claims that the state's funding formula violates the state's constitutional mandate to provide all students with a uniform public education. Arizona's formula currently uses an outdated method that unequally distributes funding. The case to be filed by the charter school group is unusual because both charter schools and district schools- groups that are usually at odds over school funding- favor reform. Similar school funding cases were filed in 2006 and 2008 (in Arizona?), but both previous cases were dismissed. More here...

West Virginia Schools Turn to Federal Stimulus Money to Fill Funding Gaps
West Virginia Governor Joe Manchin recently told school officials to expect a 4 percent cut in state funding for education in the coming fiscal year. However, using federal State Fiscal Stabilization Funds made available through the American Recovery and Reinvestment Act earlier this year, school districts should be able to fill the holes created by state cuts, and some districts could even see funding increases. Public education makes up the largest piece of the state budget, but will see smaller cuts than other state services. Governor Manchin has told the rest of the state government to expect cuts of 5 percent. More here...

Higher Education Targeted in Colorado Budget Cuts
As Colorado faces a $320 million shortfall in state revenue, Governor Bill Ritter may be forced to make dramatic cuts to higher education spending. Governor Ritter's plan, announced last month, would cut $81 million from the state's higher education budget. While the cuts will be filled this year with federal stimulus money, officials worry about the following budget year when federal money is no longer available. In preparation for the coming blow, state colleges and universities are raising tuition, making cuts, and putting off plans for expansion. In Colorado, funding for K-12 education is constitutionally protected, requiring that the majority of budget cuts come from higher education. This has prompted some advocates to argue that higher education funding should be granted the same protection as K-12, but there is little public support for the measure. More here...

Briefly Noted

Missouri higher education officials scale back funding request in light of budget forecast.

Friday News Roundup: Week of August 3-7

Emilie Deans — Fri, 07 Aug 2009 18:22:00 -0400

Mississippi Early Education Program Could Receive Federal Funding

Missouri Districts Grapple with How to Spend Stimulus Money

Governor Richardson Announces Plan to Turn Around New Mexico Dropout Problem

North Carolina Raises Taxes, Cuts Budget for Schools

Mississippi Early Education Program Could Receive Federal Funding
The U.S. Senate Appropriations Committee has approved $2.85 million for several Mississippi education programs in fiscal year 2010. If included in the final spending bill, the funding could provide up to $2 million toward the Mississippi Building Blocks program over the next three years. The program provides on-site mentors, classroom materials, scholarships for child-care instructors to attain certification, business consulting, and parental education at participating child-care centers. Program officials believe the funding would allow them to gather data on how children in the program perform compared to their peers. This could help them make the case for a statewide early childhood education program. Mississippi is one of only 12 states with no state-funded early education program. More here...

Missouri Districts Grapple with How to Spend Stimulus Money
Missouri school districts expect to receive a portion of an estimated $1.3 billion in federal stimulus funds next month. The bump from the stimulus will bring Missouri's K-12 budget to nearly $6 billion, up by about $600 million from the last school year. While some Missouri districts have already made plans to spend the money on new school buses, computers, and reading and math teachers, others haven't yet devised a plan. With strict guidelines on how the money should be spent, and on which students, many districts are concerned that if they don't use it wisely, they and others in the state will lose out on future stimulus grant competitions. The districts are also concerned about carefully tracking and reporting on the use of stimulus dollars, a strict requirement of the law. State Department of Education officials are scrambling to provide support and recommendations to these districts. More here...

Governor Richardson Announces Plan to Turn Around New Mexico Dropout Problem
New Mexico Governor Bill Richardson recently announced plans for a program to help get 10,000 dropouts in the state back in school by the end of his term. He plans to use $9 million in federal stimulus funds for the program, which he will call "Graduate New Mexico: It's Everybody's Business." Though no further details were released, Governor Richardson said he would release up to eight proposals over the next six weeks to combat dropouts and close the academic achievement gap between low income minority students and their peers. Governor Richardson announced his plan after state data were released showing a 54% graduation rate. He also appointed a task force led by Public Education Department Secretary Veronica Garcia to fight the achievement gap between white students and their Hispanic and Native American peers. More here...

North Carolina Raises Taxes, Cuts Budget for Schools
Lawmakers in North Carolina recently approved a $19 billion budget for fiscal year 2010. The budget includes nearly $1 billion in new taxes while forcing spending cuts on school districts. Governor Beverly Perdue said she would sign the bill into law, despite reservations about raising taxes while making cuts. Many programs will lose out in the budget, including the Smart Start early childhood program, which will lose $16 million. State lawmakers weren't able to agree on how to cut $225 million from K-12 education, so local leaders will have to make the difficult decisions themselves. However, the state budget bars them from cutting teachers or raising class sizes in kindergarten through third grade. More here...

Briefly Noted

North Carolina teachers who were laid off in Charlotte can reapply for jobs.

Friday News Roundup: Week of July 27-31

Emilie Deans — Fri, 31 Jul 2009 18:57:00 -0400

State Budget Includes Major Cuts to Ohio Grant Program

Pennsylvania Budget Deadlock Prevents Payment to Schools

Faculty Union in California Accepts Furloughs

New GAO Report: State Implementation of Career and Technical Education

State Budget Includes Major Cuts to Ohio Grant Program
The recently approved Ohio state budget for fiscal year 2010 includes significant cuts to the Ohio College Opportunity Grant, money that students and universities expected to receive this fall. The grants will no longer be available to low-income students attending community colleges and regional campuses, and those attending four-year public universities can only qualify for $1,008 annually-down from $2,496 in past years. Students at private, nonprofit colleges are still eligible for the full $2,496. Ohio lawmakers say that some of the cuts will be offset by a $619 increase in the maximum 2009-10 year federal Pell Grant and other federal aid programs. Some universities have announced plans to divert money from other programs in order to help offset the cuts. However, some community colleges have raised tuition prices at the last minute, leaving low-income students to figure out how to make up the difference. More here...

Pennsylvania Budget Deadlock Prevents Payment to Schools
Pennsylvania's budget crisis has left schools without $416 million that they expected to receive yesterday. Since the state legislature has failed to pass a budget, the state portion of K-12 school funding cannot be distributed, leaving schools to wait for the first monthly state subsidy for the 2009-2010 fiscal year. Until state lawmakers approve a budget, districts will have to find another way to make payroll, pay vendors, and cover other costs. With Senate Republicans proposing to slash $728 million from Governor Ed Rendell's budget proposal, prospects for a quick resolution are slim. Since it takes two weeks to authorize payments after a budget is enacted, the August 27^th payment may be affected as well if the legislature doesn't act quickly to come to a compromise. More here...

Faculty Union in California Accepts Furloughs
The California Faculty Association, which represents 22,000 faculty members in the California State University System recently agreed to two furlough days a month. The move is an effort to close the system's $584 million budget deficit, caused by the state's 20 percent reduction in financing for the system, and could save up to $275 million. The furlough days will likely result in fewer teaching days or administrative duties for faculty members. The union representing 16,000 nonacademic employees of the university system approved a furlough agreement earlier this week. The system has also reduced enrollment by 40,000 and raised fees in order to address the deficit. More here...

New GAO Report: State Implementation of Career and Technical Education
The U.S. Government Accountability Office (GAO) recently released a report, "Career and Technical Education: States Have Broad Flexibility in Implementing Perkins IV." The report examines how states have implemented this federal program, which authorizes grants for the enhancement of Career and Technical Training Programs. It also examines Department of Education oversight of and support for the program, and what the Department knows about the program's effectiveness. State surveys showed that most states use assessments-such as industry certifications-to determine program effectiveness, and that student technical skills attainment and placement were hardest to measure and track because of cost. GAO recommends that more consistent reporting from states would allow the Department to better track the success of these programs. Read the full report here.

Briefly Noted

Illinois governor seeks to reverse Board of Education recommendation that would cut pre-kindergarten programs for more than 30,000 toddlers.
New federal aid for community colleges would come with strings attached.

Friday News Roundup: Week of June 22-26

Emilie Deans — Fri, 26 Jun 2009 18:14:00 -0400

Indiana College Leaders Urge Lawmakers Not to Cut Higher Ed Budget

Louisiana Lawmakers Approve Spending Plan, End Session

Federal Stimulus Money Will Stave Off Cuts from Classrooms in Delaware

Indiana College Leaders Urge Lawmakers Not to Cut Higher Ed Budget
As Indiana state legislators attempt to negotiate a compromise on the fiscal year 2010 state budget, college leaders are trying to convince them not to cut funding for higher education. University officials told the lawmakers tasked with reconciling the House and Senate versions of the budget that despite efforts to cut costs, universities face cost increases that are out of their control. House Democrats have proposed a budget that includes a 2 percent increase in funding for higher education, while the Senate Republicans' version contains a 2 percent decrease. The House version uses almost all of the state's federal stimulus money in its one-year budget, but Senate Republicans claim that this could bankrupt the state by creating obligations it can't fulfill in the second year. The conference committee has until Wednesday to find a compromise and pass it in the General Assembly or the state will face a government shutdown. More here.

Louisiana Lawmakers Approve Spending Plan, End Session
Louisiana state lawmakers on Thursday approved a spending plan that would ease cuts to state programs and projects. During the last hour of the 2009 legislative session, lawmakers approved HB881, a spending bill assembled by conference committee after the governor vetoed several line items in the original budget bill (HB1) earlier in the session. This unusual process involving multiple spending bills has caused confusion among lawmakers as to which programs survived cuts and how much money will be spent overall. However, lawmakers said that HB881 reduces cuts to higher education from $219 million to $110 million. Higher education officials say this will allow them to make cuts in a more methodical way. The cuts were reduced after a bill was passed establishing a tax amnesty period, settling a debate over how much to withdraw from the state's "rainy day fund." More here.

Federal Stimulus Money Will Stave Off Cuts from Classrooms in Delaware
Thanks to federal stimulus funds, Delaware public schools will be able to fill in cuts from the state budget passed earlier this month, and in many cases will have some extra money left over. The state budget included a 2.5 percent salary cut for public school employees with additional cuts to elementary school reading and math specialists. Though districts will decide on their own how to spend the money, state lawmakers hope they will use it to partially offset salary and budget cuts. State officials have advised districts not to invest funds in areas that will require continued funding after stimulus dollars run out. More here.

Briefly Noted

Nevada will use stimulus dollars to fill budget holes; Secretary Duncan warns that they may lose out on future distributions.
Early education is on Ohio's budget chopping block.

Friday News Roundup: Week of February 16-20

Emilie Deans — Fri, 20 Feb 2009 17:54:00 -0500

Massachusetts Schools Reconsider Full-Day Kindergarten

Community Colleges Unable to Meet Demand

Stimulus Law Provides Funds for Work-Study Jobs

Massachusetts Schools Reconsider Full-Day Kindergarten
Faced with tough economic times, many Massachusetts school districts are reconsidering their full-day kindergarten programs. In 2000, the state established a grant program for full-day kindergarten, hoping to have all students in full-day programs within ten years. Today, three-fourths of the state's kindergarten students are in full-day programs. Unfortunately, budget difficulties are now forcing the state to scale back the program. Given their own budget problems and decreased state support, many districts are finding they have to choose between going back to half-day kindergarten or charging already struggling families fees for full-day kindergarten. Educators say that full-day programs are beneficial in many ways, particularly because they allow teachers to get to know students and identify learning difficulties earlier. More here.

Community Colleges Unable to Meet Demand
Enrollment in California community colleges rose by nearly 10 percent last fall, and more increases are expected in the spring. Budget cuts aimed at the state's other higher education systems and difficult financial times have placed a greater burden on community colleges to provide job training and low-cost postsecondary education. But these colleges are struggling to keep up with demand. Inadequate state funding may force community colleges to cut 5 percent of classes. Although community colleges operate under a mandate of accepting all applicants, this may become an empty promise if students are unable to enroll in any courses. More here.

Stimulus Law Provides Funds for Work-Study Jobs
The economic stimulus package that President Obama signed into law on Tuesday includes $200 million for federal work-study. The additional money could help 130,000 additional students pay for college. The work-study program requires colleges to match part of the funds in order to participate. As a result, only schools with sufficient institutional aid dollars will be able to accept the increased federal money. In addition, colleges may convert existing campus jobs that aren't funded by federal work-study into work-study jobs with the new money, resulting in no net gain in total jobs available. However, the bump in funds will likely help low-income students stay in college, an important development for students in the short term and for the economy and the country in the long term. Federal work-study is supported broadly by both political parties. More here.

Briefly Noted:

Maryland cuts funding for gifted students summer program in 2010 state budget.
Budget cuts force Nevada schools to drop block scheduling.

The Teachers Seek A Sales Tax Hike, By Initiative

Joe Mathews — Thu, 25 Dec 2008 19:34:00 -0500

The San Francisco Chronicle has more here on the ballot initiative, filed by lawyers working for the Califorina Teachers Assn., to raise the sales tax to create a new source of education funding. A proposal to raise taxes for new education funds at a time of budget scarcity won't make the union popular in Sacramento.

But there's a case to be made for such an initiative. Education is often blamed for the state's budget problems, because about half the state budget is devoted to schools. But the education part of the budget is growing more slowly than other items, especially health and social services programs. And if schools are the state's top priority, then their funding should be protected from the vagaries of the economy.

Round Up: An Anti-Education Climate?

Joe Mathews — Sat, 17 May 2008 13:30:00 -0400

EDUCATION REFERENDUM: Watching local school referenda around the country -- and the hostility to any new spending even on education, the most popular government program -- suggests a political shift that may work against Democrats and against efforts all over the country to repair infrastructure. Here's a story that caught my eye: residents in Newton, Mass., a generally liberal Boston suburb, are seeking to place a referendum on the ballot to reverse the funding of a new school there.

IMPOUNDING MILE HIGH CARS: The Denver city council takes a step towards referring to voters a measure that would require police to impound the cars of unlicensed drivers. The measure is aimed at unauthorized immigrants.

BIG GREEN REDUX: At Huffington Post, the environmentalist authors Michael Shellenberger and Ted Nordhaus see danger for Democrats on the issue of oil prices and global warming. To make their point, they tell the story of "Big Green," a notoriously unsuccessful California ballot initiative that failed in 1990. Big Green was overly ambitious and easily defeated, as they point out. But it also was part of an effort by John van de Kamp to use ballot initiatives to get himself elected governor. The strategy didn't work, either for van de Kamp or the initiaitves he championed.

CLEANING UP CLEAN WATER: Backers of an Alaska ballot initiative to limit what the Last Frontier's metal mines can dump in the water want to withdraw the measure. They say they want to focus on an alternative measure.

OLD FOLKS HEART HEALTHY KIDS: The Montana ballot initiative to expand chlidren's health care coverage picks up a key endorsement, from the AARP.