News Briefs
Some states foresee funding squeeze
Jan 17, 2008 11:10 AM
There’s no such thing as permanent school funding. In state after state, school support is based on state and local revenues, and fiscal 2009 looks to be a leaner year for many — though not all — states, a reflection of how the housing slump affects diverse regions differently and the fact that school budgets are paid for largely through local property taxes. Already 15 states are reporting deficits or revenue shortfalls, and a report by the National Governors Association forecasts a continued slowdown in the growth of revenue collections and spending.
California projects as much as $14 billion in red ink in the next year and a half. In Florida, another state hit hard by the U.S. housing slump, school advocates seeking scarce state resources will be contending with homeowners facing foreclosure, commuters needing improved transportation and the general population looking for relief from rising health costs. Later in January, Florida voters will decide on a constitutional amendment that could save taxpayers more than $9 billion over the next five years, while education groups, firefighters and local governments warn the savings will come at the expense of declining school performance and local services.
Still, a number of states, including New York, are making school funding a priority. In Alabama, the state’s pre-kindergarten program will expand to serve 21,000 4-year-olds by 2011. In New Jersey, Gov. Jon Corzine wants to expand full-day preschool to all disadvantaged 3- and 4-year-olds. Programs in career and technical education continue to grow in California, Florida and South Carolina. Efforts in Indiana and Oklahoma to combat dropout rates include continued funding for “early-commitment programs” that guarantee college dollars to low-income students if they complete high school or graduate with a certain grade point average in college-prep courses.
While needs-based financial aid is growing, observers see fewer dollars going toward merit-based programs, such as Georgia’s HOPE Scholarship, because they are expensive — Georgia alone budgets more than $500 million a year for its program.
Observers see another emerging trend involving offering retirement incentives to educators, though the states’ ability to pay for retiree health-insurance coverage makes that problematic.
Education Week, Dec. 5, Jan. 2
