Wednesday, October 21, 2009

THINK Mayoral "BIG PICTURE" Education STIMULUS!

An Education Stimulus for the Nation's Cities

Given the beating that city and state budgets have taken in recent months, America’s mayors have come under tremendous pressure to scale back all but the most critical investments in public safety, infrastructure, transportation, and other core services.

But for the nation’s big cities, there can be no true, long-term economic recovery without adequately educating far greater numbers of young people. No matter how steep the fiscal downturn, mayors must redouble local efforts to improve graduation rates and—no less important—to create meaningful educational options for the staggering numbers of adolescents who have been pushed aside or have given up on school altogether.

We therefore argue that one aspect of school reform—expanding high school options and alternatives—deserves to be ranked as a top priority for the nation’s mayors and school superintendents. A new generation of innovative high school models offers rigorous academic coursework, supports for students who face personal challenges outside of school, and opportunities for returning students to both catch up on what they have missed and prepare themselves for college and careers. For students who have not been well served by traditional “one size fits all” high schools, these programs offer a second chance to realize their full potential.
—Jonathan Bouw

In each of our three midsize cities, the schools lose roughly 4,000 students every year. Over their lifetimes, these students each earn about $260,000 less than high school graduates, pay about $60,000 less in taxes, and put an enormous strain on our health-care, criminal-justice, and social-welfare systems. They represent yet another generation that could have contributed to the civic and cultural life of our communities.

We are convinced that even a modest investment in well-designed alternative high schools can have a major impact on the dropout problem, and, by extension, the economic and social burdens dropouts place on our communities. Indeed, we see a movement to provide much broader high school options for all students as an essential piece of any long-term strategy for the economic, civic, and cultural recovery of our cities.

Our three cities are place-based partners in the Alternative High School Initiative that has been managed by Big Picture Learning and the National League of Cities under a grant from the Bill & Melinda Gates Foundation. Through this initiative, our cities are beginning to make strong, systemic efforts to reach out to young people who have left school or have begun to drift away. We are in the midst of opening an array of high-quality high school options, so that all our young people can achieve academic proficiency, earn a high school diploma, and be prepared to pursue postsecondary education. Launching and expanding these alternatives, we have found, requires that city and school leaders be receptive to schools that are innovative, often started from scratch, and sometimes managed by entities other than local districts.

Newark, N.J., for example, has introduced what amounts to an education stimulus package to reclaim its dropouts. Through a partnership that includes the Newark public school system, Essex County College, and nonprofit organizations such as Gateway to College, Diploma Plus, Communities in Schools, and Big Picture Learning, the city will have launched eight new alternative schools and programs focused on dropout prevention and recovery during the 2008-09 and 2009-10 school years. These efforts eventually will serve between 1,000 and 2,000 young people—a sizable portion of those who have left the system.

Indianapolis and Nashville, Tenn., are continuing their successful partnerships with Big Picture Learning. Its alternative school model created in Providence, R.I.—the Metropolitan Regional Career and Technical Center, known as the Met—combines demanding academic work and experiential learning, boasts a national graduation rate of 92 percent, and regularly meets adequate-yearly-progress goals in all of its schools nationwide.

In addition, Indianapolis has already opened four new Diploma Plus schools, a model that targets students who are overage and undercredited, and a YouthBuild program that blends construction training with a return to school for dropouts. Next year, Nashville also plans to open a Diploma Plus school, and will launch a Gateway to College program, which provides high school dropouts between the ages of 16 and 20 with a means to complete their diplomas while also earning significant college credits. The city also plans to start a new YouthBuild program.


What have we learned from these efforts? We have come to understand that for alternative programs to flourish, mayors must work closely with school leaders and play an ongoing, hands-on role, going well beyond their customary involvement in education.

Specifically, to the extent that it is possible, mayors can identify and offer available space within their cities to house alternative high schools. Further, they can lead the reform of municipal policies, such as zoning restrictions or rules governing access to public transportation, that might prevent local alternative schools from finding homes or attracting students from other parts of their cities.

Mayors also can champion increased front-end investment for principals and teachers to be trained in new approaches to teaching and learning that work with students who have had bad experiences in traditional high school environments. It is rare that a school district has funding to pay the professional-development costs for launching many new schools at once. In our cities, we have combined public and private money with the help of a broad range of community funders and partners, including philanthropic foundations, higher education institutions, and nonprofit organizations.

Equally significant, launching these efforts requires true leadership from the city agencies that support young people. Students leave school for many reasons—health challenges, problems in the justice or foster-care system, family conflicts, and so on. We therefore need to be sure that city departments are providing or are forging strong collaborations with relevant county and state agencies to provide all the necessary support services for young people and their families. In our cities, we have convened meetings of the heads of various city agencies to brainstorm new ways to collaborate on education and youth development and to create interagency agreements and realign services when necessary.

Many of our alternative high schools are operated and managed by groups outside the local school district. Indianapolis was the first city in the nation to be granted chartering authority by the state legislature. As a result, Mayor Gregory Ballard’s office is able to tap per-pupil funding for new alternative high schools opening as charters.


Other cities and school districts can learn from our efforts. It is possible to hold students to high standards while also allowing them to learn at their own pace and in ways that respect their singular talents, interests, and learning styles. Reclaiming students who have left or are drifting away requires a broad array of interventions and innovations, as well as flexibility in regulation, which requires municipal leadership at the highest level.

Regardless of the size of the nation’s cities or the economic troubles they face, urban dropout rates are too sizable to overlook. As civic leaders across America explore ways to stimulate their economies, we urge them to spark the growth of alternative high schools and dropout-recovery programs in their communities. The development and expansion of these student-focused, project-based schools can change the odds for the most underserved students. And they have the power to transform the dynamic of leaving school early into a culture of graduating from high school ready for college and work.

But it will take leadership from mayors, who, as our experience illustrates, can be catalysts for change, ensuring adequate resources and buildings, appropriately trained staffs, flexibility, and expanded options—crucial elements of the education stimulus America’s cities so desperately need.

THINK "DIGITAL STIMULUS!"

In some classrooms, books are a thing of the past

Digital texts gaining favor, but critics question quality

By Ashley Surdin
Monday, October 19, 2009


AGOURA HILLS, CALIF. -- The dread of high school algebra is lost here amid the blue glow of computer screens and the clickety-clack of keyboards.

A fanfare plays from a speaker as a student passes a chapter test. Nearby, a classmate watches a video lecture on ratios. Another works out an equation in her notebook before clicking on a multiple-choice answer on her screen.

Their teacher at Agoura High School, Russell Stephans, sits at the back of the room, watching as scores pop up in real time on his computer grade sheet. One student has passed a level, the data shows; another is retaking a quiz.

"Whoever thought this up makes life so much easier," Stephans says with a chuckle.

This textbook-free classroom is by no means the norm, but it may be someday. Slowly, but in increasing numbers, grade schools across the country are supplementing or substituting the heavy, expensive and indelible hardbound book with its lighter, cheaper and changeable cousin: the digital textbook.

Also known as a flexbook because of its adaptability, a digital textbook can be downloaded, projected and printed, and can range from simple text to a Web-based curriculum embedded with multimedia and links to Internet content. Some versions must be purchased; others are "open source" -- free and available online to anyone.

Some praise the technology as a way to save schools money, replace outdated books and better engage tech-savvy students. Others say most schools don't have the resources to join the digital drift, or they question the quality of open-source content.

Hardbound books still dominate the $7 billion U.S. textbook market, with digital textbooks making up less than 5 percent, according to analyst Kathy Mickey of Simba Information, a market research group.

But that is changing, as K-12 schools follow the lead of U.S. universities and schools in other countries, including South Korea and Turkey. In Florida's Broward County, students and teachers log online to access digital versions of their Spanish, math and reading books. In Arizona, classes at one Vail School District high school are conducted entirely with laptops instead of textbooks. And in Virginia this year, state officials and educators unveiled a free physics flexbook to complement textbooks.

California's experiment


California made the largest embrace of digital textbooks this summer when it approved 10 free high school math and science titles developed by college professors and the CK-12 Foundation, a Palo Alto-based nonprofit aimed at lowering the cost of educational materials. The titles were approved as meeting at least 90 percent of California's academic standards, with the state leaving the choice to use them up to individual schools.

Gov. Arnold Schwarzenegger (R) hopes they will. His digital textbook initiative is meant to cut costs in the severely cash-strapped state. (Given that the average textbook costs $100, he argued, the state could save $400 million if its 2 million high school students used digital math and science texts.) The initiative also aims to replace aging hardbound books that don't teach students about the Iraq war, the country's first black president or the Human Genome Project.

"The textbooks are outdated, as far as I'm concerned, and there's no reason why our schools should have our students lug around these antiquated and heavy and expensive books," Schwarzenegger said this summer. "Digital textbooks are good not only for the students' achievement, but they're also good for the schools' bottom line."

California public and private schools spent more than $633 million on textbooks in 2007, making the state the biggest spender nationwide, according to the latest data from the Association of American Publishers. Schools in Texas spent $375 million; in New York, $264 million. The District spent $13.9 million.

Controlling costs?


Concerns over costs prompted Congress to pass legislation last year that requires publishers to disclose the price of textbooks when they sell them to teachers. It also ends a practice in which publishers sell books and supplemental materials together, driving up costs. Several states have passed similar legislation.

But some dispute the idea that digital textbooks -- even open-source versions -- will be cheaper for states, at least right away, or improve education quality.

"Keep in mind that with open-source materials, you have to ask, 'Where are they coming from?' " said Jay Diskey, executive director of the Association of American Publishers' school division. "Is it a trusted source? Is it aligned to state standards? Is it based on real research?"

Diskey said traditional textbooks offer a comprehensive curriculum, while some open-source texts provide only bits and pieces. "There can be quite a difference of content and accuracy," he said. "In many cases, you get what you pay for."

Textbook publishers face losing business as free Internet content expands. But Diskey blames the recession, not free digital books, for any fiscal hardships facing the industry. "We don't think budgets are being cut because of open-source materials," he said.

A lack of digital resources


Schools using digital texts say it's too soon to tell how much money they may be saving. As critics point out, long-term fiscal benefits require upfront resources that many schools lack: money, teacher training, bandwidth to support Internet multimedia and, most critically, computers.

The majority of households have personal computers and Internet access, according to a 2005 report from the Census Bureau, but access declines with income. And U.S. schools on average have roughly one computer for every four students, according to 2005 data from the National Center for Education Statistics.

"It's going to be a bit of a challenge for schools throughout the country to implement this new technology," said David Sanchez, president of the California Teachers Association. "How do you guarantee all children have access to that kind of textbook?"

Glen Thomas, California's education secretary, questions whether digital textbooks require a computer for every child. "This initiative is not about hardware," he said. "I visited a classroom where there were a couple kids using laptops, several had textbooks, some had a couple chapters printed out, and the lesson was displayed on a screen in front of the class."

For now, it appears that digital textbooks are largely a school-by-school, teacher-by-teacher choice. But converts such as Stephans of Agoura High School are quick to encourage more.

"If there was a list of math teachers who would have signed up for this, I would have been at the bottom," said Stephans, who hesitantly agreed to pilot the textbook-free class this year. To educators considering the digital possibilities, he now says: "What are you waiting for?"

WHAT a DIFFERENCE a DAY MAKES!

BUDGET CLASHES

As they bicker, strife grows


GRANHOLM SAYS SHE HAD TO VETO; BISHOP CALLS IT ‘EXTORTION’


By CHRIS CHRISTOFF


FREE PRESS LANSING BUREAU CHIEF

LANSING — The Capitol crackled with defi­ance, dismay and doctors in white smocks Tues­day, as new skirmishes in the state budget war erupted on several fronts.

Outside, hundreds of doctors with signs and bullhorns rallied for and against legislation to impose a 3% tax on all physicians.

Inside, Gov. Jennifer Granholm defended her Monday veto of $51.5 million for 39 of the state’s highest-spending school districts, including 26 in suburban Detroit. She said she had no choice because the school budget the Legislature sent her was unbalanced.

“There will be additional cuts, perhaps soon,” she warned, as state economists met to assess the state’s worsening finances.

Senate Majority Leader Mike Bishop, R­Rochester, denied Granholm’s charge that $60 million in revenue was missing to pay for a near­ly $11-billion school budget. He called Gran­holm’s veto “extortion” but pledged not to raise taxes.

Clearly, the gulf between the two most im­portant people in the process was deeper by day’s end.

School officials caught in the middle com­plained that students were being held hostage and blamed both the governor and Legislature. Meanwhile, Bishop sent Granholm six more budget bills with a warning not to veto any items in the bills. But Granholm hinted that she would and said more money is needed to fund college scholarships, help cities and support Medicaid.








Veto threats loom for budgets

Granholm presses for new taxes, fees

By CHRIS CHRISTOFF and KATHLEEN GRAY

FREE PRESS STAFF WRITERS

LANSING — The ink from Gov. Jennifer Granholm’s veto of $51.5 million for 39 school districts was barely dry Tues­day when she received six more budget bills, and hinted that more vetoes are coming.

State budget director Bob Emerson cautioned that all school districts may face more cuts of as much as $120 per pu­pil this year, as tax revenues continue to weaken.

Granholm’s veto sent shock waves through the Legisla­ture. She laid blame on Senate Majority Leader Mike Bishop, R-Rochester, and pressured lawmakers to approve more revenue to fund schools and other programs that were slashed in the new budget bills she received Tuesday — col­lege scholarships, revenue sharing to local governments and Medicaid payments to doctors, hospitals and nursing homes.

Bishop released the six bud­get bills Tuesday after holding them for more than two weeks after the Legislature approved them. He warned Granholm not to veto line items, saying Senate Republicans would not restore them.

Granholm, surrounded by 18 of the state’s top education lobbyists, said that without more money, many school dis­tricts face insolvency. She called for a public campaign to urge the Legislature to ap­prove new taxes and fees that she and House Democrats sup­port.

Among them: a freeze in the personal income tax exemp­tion (which is scheduled to get an inflationary increase); a re­duction in tax credits for busi­nesses; an increase in the tax on non-cigarette tobacco prod­ucts; a cut in tax credits for filmmakers, and new liquor li­cense fees for bars to remain open after 2 a.m. and on Sun­day mornings.

Granholm said the state needs to make systemic re­forms for the short and long term. On Tuesday, the short­term impact put many law­makers face-to-face with fiscal crisis in their local school dis­tricts.

“In a panic, hysterical about what these cuts mean. That was my phone call from my su­perintendents,” said Rep. Le­sia Liss, D-Warren, whose main school district, Center Line, stands to lose $570,000.

Rep. Marie Donigan, D-Roy­al Oak, said she was frustrated that legislators can’t compro­mise, as sales tax revenues de­cline and leave even less mon­ey for schools and other essen­tial services. The Royal Oak school district stands to lose $1.5 million under Granholm’s veto.

“This is scary stuff,” Doni­gan said.

Rep. Hugh Crawford, R-No­vi, represents three school dis­tricts — Northville, Novi and Walled Lake — that would lose more than $8.3 million in state funding because of Granholm’s veto.

“She’s playing games and didn’t have to do that,” he said. “I’ve never been exposed to do­ing business this way.”

Crawford said he has no plans to vote for new taxes but would be willing to look at a freeze on the Earned Income Tax Credit, which is used by low-income taxpayers.

“I have a granddaughter who is going to college, and I wasn’t happy about taking away her scholarship,” he said, referring to the $4,000 Prom­ise Scholarship eliminated by the Legislature. “But it’s going to be incumbent on schools and cities to restructure.”

Three districts in state Rep. Chuck Moss’ district — Bir­mingham, Bloomfield and West Bloomfield — all suffer deep cuts under the veto.

“It’s getting more … difficult to watch these desperate, cyn­ical measures to get more tax­es,” said Moss, R-Birmingham, instead suggesting eliminating the 1% pay increase scheduled for state employees and reduc­ing their benefits.

The easiest short-term so­lution wasn’t mentioned Tues­day: another dip into $184 mil­lion in remaining federal stim­ulus money lawmakers were hoping to save for next year.


Schools frustrated with funding veto

By LORI HIGGINS

FREE PRESS EDUCATION WRITER

Gov. Jennifer Granholm’s veto of $51.5 million in funding for select districts means some school employees will lose their jobs, some districts will deplete their savings and oth­ers will find themselves head­ing quicker into a deficit.

The veto — and the subse­quent finger-pointing that took place Tuesday in Lansing — al­so produced harsh comments for Granholm and the Legisla­ture.

“It’s frustrating and disap­pointing that we’re playing pol­itics with kids,” said Brian Whiston, Dearborn Public Schools superintendent, whose district is to lose $5 mil­lion. “I’ve got to educate these kids this year, right now.”

Dearborn and 38 other dis­tricts statewide — 26 of them in metro Detroit — are among the state’s highest funded. They have been allowed to re­ceive the special money to maintain their high funding levels since Proposal A was en­acted in 1994 with the intent to equalize funding for districts.

In Dearborn, the loss of $5 million is on top of the $165­per-pupil cut all districts in Michigan must deal with and another $1.5 million Dearborn is to lose in funding for at-risk students. Whiston said layoffs are a certainty, though he’ll be soliciting input from employ­ees on how to make up the loss. Whiston said as many as 150 jobs could be on the line.

The West Bloomfield School District already was to end the school year with a def­icit. The loss of $1.5 million will speed that along, said Joey Spano, district spokeswoman. She and others say Granholm and the Legislature are equally to blame for the situation.

“Every parent and every citizen in the state of Michigan should be outraged at this. It’s a dysfunctional system,” Spa­no said.

Superintendents in Livonia Public Schools, which is to lose nearly $5 million, and Royal Oak Neighborhood Schools, which is to lose $1.5 million, an­ticipate they’ll have to dig deep into their reserve funds to cov­er the loss. Livonia Superin­tendent Randy Liepa said he welcomes Granholm to come to his district, review his bud­get and tell him how he can make cuts.

“There has to be some ex­planation to the parents in my community,” Liepa said.


Editorial

Lansing’s failure of leadership reaches the schoolhouse door

As Michigan’s elected leaders continue their diatribes over the state budget, now 10 days away from the next deadline, the dire consequences have begun to hit home.

On Monday, Gov. Jennifer Gran­holm vetoed nearly $60 million of spending in the School Aid Fund bud­get. Senate Majority Leader Mike Bishop immediately denounced the cuts, which fall disproportionately on the state’s most affluent school dis­tricts, but vowed to let them take effect before he and his Republican Senate colleagues authorize a penny of the additional revenue Granholm insists is required to restore them.

What is coming into view now is the sort of state you get when leaders attempt to fix a long-term budget imbalance with short-term changes in only one side of the ledger — a. state that trashes schools, cripples hospi­tals and doctors who treat Medicaid patients, jeopardizes local police and fire services, and breaks promises made to its college students.

The funds Granholm vetoed yester­day are only the leading edge of more wide­spread cuts in K-12 aid. Because tax reve­nues continue to fall short of previous esti­mates, the governor warned that another $120 per pupil may need to be cut, starting perhaps as early as next month. That’s on top of the $165 per-pupil cut included in the budget bill Granholm signed.

Now you can argue, and many people will, about Granholm’s chief line-item veto tar­get: the extra payment that some of the higher-spending school districts have gotten for the last 10 years, an adjustment that was made when the state had ample dollars and which those schools had every right to as­sume had become a permanent part of their annual grants. But nothing is guaranteed in a budget this devastated, and Granholm had few other places to turn.

Those who insist Michigan cannot afford any new taxes may well get their wish. The House has appropriately thumbed its nose at an irresponsible, Senate-produced package to raise roughly $100 million this year.

Meanwhile, the Senate will not act on any House-produced tax increases. So these cuts Granholm ordered Monday look likely to stand.

That’s brutal news to Michiganders, who have long identified K-12 educa­tion as a top priority. With 24 school districts already on the financial edge, the state may not have enough emer­gency financial managers to go around. Outright closures may occur.

Without some additional taxes — or a slowdown in some programmed tax breaks — the news will get worse, and not just for schools. The Senate has sent Granholm the final six budget bills she needs to sign to prevent a state shutdown Nov. 1, along with a message from Bishop that any line­item vetoes she makes will not be vot­ed on again.

That’s fine. The more the governor saves now with line-item vetoes, the fewer cuts will have to be made later.

Granholm noted Tuesday that freez­ing the personal deduction on the state in­come tax could yield $55 million. Other stop­gap measures could produce significant dollars without increasing the general bur­den on hard-pressed taxpayers.

But Michiganders would be better off now if both sides turned their full attention to long-term changes in the way our state rais­es and spends money, such as containing employee benefit costs and adopting a tax regime that captures revenues from every segment of the state’s changing economy.

Even the best long-term reform package — and no one’s holding their breath on that — may not be able to repair the wounds occur­ring right now.

STATUS-QUO INSURED! (At least for another day or so)

Politics K12

Politics K-12

Your education road map to state and federal politics

Michele McNeil covered education and state government in Indiana for a decade before joining Education Week as a state policy reporter in June 2006. Alyson Klein, who reports on federal education policy, joined the staff in February 2006 after nearly two years at Congress Daily.

White House: Stimulus Saved 250,000 Education Jobs So Far

A new report out from the White House Domestic Policy Council estimates that the stimulus package has saved or created 250,000 education jobs so far—most of them probably teachers. (UPDATE: And a good chunk of them are from California. Gov. Arnold Schwarzenegger reported today that 62,204 of these education jobs, or nearly 25 percent of the estimated total, were saved or created in his state.)
The White House has the distinct advantage of being able to look at the first quarterly stimulus reports that states and other recipients of stimulus funds filed with the federal government before anyone else. The rest of us get to look at the reports when they're made public on Recovery.gov Oct. 30.
Even so, much of the 23-page report rehashes data from the already public applications states submitted to gain access to their stabilization funds—data that shows most states said they would use the money to backfill cuts they made, or were going to make, to K-12 education. The White House also drew on anecdotal reports from the media to highlight jobs that were saved in specific school districts. In a press release, the White House says that the stimulus package has enabled states to restore nearly all of their projected education budget shortfalls for fiscal 2009 and 2010. Of course, things are still projected to get much worse for states, based on latest tax collections data.
In the press release, Education Secretary Arne Duncan says: "Early feedback from states also tells us that many districts are using stimulus dollars in ways that will move us beyond the status quo."
Given that most of the money has so far been used to get state K-12 funding levels up to the status quo, it will be most interesting to see what states and school districts report spending their money on. (UPDATE 2: Read Andy Smarick's take on this issue, too.)

STIMULUS FUNDING in JEOPARDY! (NO-Not the GAME but because of it)

State examines whether waiver is needed to keep K-12 stimulus funding

Granholm administration officials are looking at whether Michigan may need to seek a waiver enabling it to keep federal stimulus funds for K-12 education.

The possibility is being considered as state officials examinewhether state funding levels for K-12 education are likely to drop below the “maintenance of effort” compliance levels required by the federal stimulus package, or the American Recovery and Reinvestment Act.

State Budget Director Robert Emerson said at a press conference on Tuesday that any further reductions, beyond those in the school aid budget signed by Gov. Jennifer Granholm on Monday, could jeopardize the federal stimulus funding.

Michigan used about $600 million in federal stimulus funds as part of the fiscal 2009 school aid budget and has allocated an additional $450 million as part of the current-year school budget, leaving about $183 million reserved for use in fiscal 2011.

If Michigan were to be out of compliance with the ARRA, it could potentially have to repay the money. A waiver, however, would avert that and other states have sought and received such waivers.

Emerson and Granholm said there is the potential that Michigan will need to enact additional per-pupil cuts, beyond the $165 per-pupil reductions in the just-signed budget.

Emerson said state Treasurer Robert Kleine and officials at the House Fiscal Agency and Senate Fiscal Agency were meeting on Tuesday to determine the state's current revenue outlook.

He and Granholm said the current school aid budget was underfunded by $60 million, based on May revenue estimates. But the state Treasurer has also indicated that, based on the latest revenue data, the shortfall in the school aid fund could be as high as $264 million.

Granholm on Monday vetoed $54 million in spending measures in the $12.9 billion K-12 budget, including $51.5 million in supplemental payments to districts that get among the highest per-pupil payments statewide.

Taking into account Granholm's veto, that could leave a current-year shortfall as high as $210 million, which could translate to additional, across-the-board cuts of as high as $120 per pupil, unless the Legislature provides additional funding, Emerson said.

At the Capitol press conference, Granholm and an array of education officials from across the state urged lawmakers to pass additional sources of revenue.

Granholm said education is the “thing most important for our economic recovery” and warned of “additional cuts, potentially soon.”

Also on Tuesday, the Senate sent Granholm six remaining budget bills that include controversial cuts like an 11.1 percent reduction in state revenue sharing and an 8 percent cut in Medicaid providers' reimbursement rates.

In a letter accompanying the bills, Senate Majority Leader Mike Bishop, R-Rochester, warned Granholm against vetoing items in the bills with the expectation that the Legislature would pass new sources of revenue to reinstate the vetoed items.

“Please remember that any line item veto you exercise will result in the total elimination of those programs,” Bishop wrote. “Do not veto portions of these budgets with the expectation that money will be reappropriated at a later date to fund the vetoed programs.

“There is not sufficient support in the Senate Republican caucus for tax increases and for you to think otherwise is a mistake.”

Bishop said the final fiscal 2010 budget represents a “bipartisan and bicameral effort that was achieved after months of tough negotiations.”

Sunday, October 18, 2009

"WOW, YOU mean we've used ALL of the Federal STIMULUS Monies to merely perpetuate the STATUS-QUO?"

States Feeling Fiscal Squeeze Despite Stimulus

Premium article access courtesy of Edweek.org.
Despite the nearly $40 billion infused into state coffers to help steady state education budgets under the federal economic-stimulus package, some states remain in dismal fiscal straits, forcing further cuts to K-12 programs.
States such as Pennsylvania that recently wrapped up protracted legislative sessions were forced to make sometimes-painful adjustments to cope with declining revenues, despite the unprecedented aid under the American Recovery and Reinvestment Act, the stimulus law.
Lawmakers in other states, including New Mexico, are heading back for special sessions to consider further reductions to their budgets for the current fiscal year.
And many states are looking ahead to a time in the federal 2011 fiscal year when money from the State Fiscal Stabilization Fund, a key part of the stimulus program, will no longer be available. That funding, which was intended primarily to backfill cuts that states had already made to education programs, is spread out over two years. In some cases, states have diverted resources from K-12 programs and replaced their own dollars with stabilization funding from the federal government. ("States Stung by Criticism on Use of Stimulus Aid," October 12, 2009.)
“K-12 education has come under pressure that it has not seen in decades,” said Arturo Perez, a fiscal analyst for the National Conference of State Legislatures, based in Denver. “The only bright note is the money provided under the ARRA.”
That cloudy fiscal forecast appears unlikely to brighten any time soon. A report released Oct. 15 by the Nelson A. Rockeller Institute of Government, the public-policy-research arm of the State University of New York, shows that state revenues are faltering and are likely to remain shaky for the next several years.
The study found that those revenues nationwide dropped a record $63 billion in the fiscal year ending June 2009, or roughly twice the amount of money states have gained from the stimulus program so far.
That may help explain why, even with the extra cash, some states still have reduced or eliminated education programs.
For instance, this week Michigan Gov. Jennifer Granholm, a Democrat, was expected to sign the state’s K-12 budget for this fiscal year by Oct. 20, in time for payments to school districts to be doled out. The budget came after lawmakers had passed a continuing resolution to keep programs afloat while the legislature hashed out its spending bills. The budget includes a cut of $165 per pupil in grants to school districts for K-12 students.
In Michigan, the governor has line-item veto power, and it is still unclear whether Gov. Granholm planned to use it on any portion of the education spending bill.
Although state lawmakers sought to give districts flexibility in determining how to find the savings, school officials are struggling to figure out what to trim next, said Brad Biladeau, the associate executive for government relations at the Michigan Association of School Administrators.
“We’ve been cutting administrative expenses and support services to school districts,” he said. “Now school districts are faced with significant cuts that could impact the classroom."

Cuts to Programs

Pennsylvania wrapped up an exhausting legislative session when Gov. Edward G. Rendell, a Democrat, signed the final budget Oct. 9. The measure, which came in more than 100 days behind schedule, offered a mixed picture for K-12 education, said Ronald Cowell, the president of the Education Policy and Leadership Center, a nonprofit organization in Harrisburg, Pa.
“The good news is that there is a $300 million increase,” to $5.5 billion, for basic education funding, which provides the largest amount of aid for school districts, Mr. Cowell said. That amount represents a 5.7 percent increase over last year.
The move was in keeping with a plan, enacted in 2007, to overhaul Pennsylvania’s school finance system. But it will be tough to keep up that level of funding once the state-stabilization dollars provided under the recovery act are gone, Mr. Cowell said.
And other programs that school districts depend on saw substantial reductions, he said. For instance, a $44.7 million program called Classrooms for the Future, which provides technology to schools, was eliminated. A high school reform program was reduced to $3.7 million, from $10.7 million.
“There’s a story to be told about each one of these program cuts,” Mr. Cowell said.
This week, New Mexico is slated to hold a special session to address its budget issues. Lawmakers will work to resolve a deficit of at least $400 million in a budget of $5.5 billion.
Gov. Bill Richardson, a Democrat, has suggested a 3 percent across-the-board reduction in government programs, except for K-12 education.
But some New Mexico legislative leaders say cuts to schools might be unavoidable. K-12 education is receiving $2.4 billion this fiscal year.
“To sit there and say we’re not going to have any cuts in education—60 percent of the budget—is that a realistic proposal or is that just political rhetoric?” said Sen. Tim Jennings, a Democrat. “There ought to be meaningful solutions.”
But districts are going to have a tough time weathering further cuts, said Tom Sullivan, the executive director of the New Mexico Coalition of School Administrators.
“We have some superintendents who may be hanging by a thread who see this as the straw that’s going to break the camel’s back,” Mr. Sullivan said.
And he sees further trouble ahead, particularly if the state doesn’t find a new revenue source for education. Lawmakers in New Mexico used about $165 million in stimulus money to help balance school districts’ books in the current fiscal year, he said, but revenue forecasts have been even cloudier than expected.
That might force the state to tap the remaining $90 million in stimulus funding that so far hasn’t been allocated—leaving much less of a federal cushion to help finance schools in the next fiscal year.
“If that money is held back and used in building [next year’s] budget, then ... we’re not falling off the cliff yet,” Mr. Sullivan said. But, he added, “I’m not sure if they can make it through [this fiscal year] without using some or all of the $90 million sooner than they had hoped.”

‘Funding Cliff’ Coming

Other states are bracing for tough choices in the coming legislative sessions.
Florida has been hit particularly hard with the national downturn in the housing market, and that’s likely to lead to a structural deficit in the years ahead, said Wayne Blanton, the executive director of the Florida School Boards Association.
“We’re sort of at a crossroads,” Mr. Blanton said. He said state-financed programs, including K-12 education, have always benefited from the revenue bump created by an influx of new residents.
But Florida recently lost nearly 60,000 people, the first population drain in decades. “We’re going to take a 15 to 20 percent cut in state services” in the coming years, Mr. Blanton said, if there isn’t a major change in the state’s tax structure.
Right now, K-12 education in Florida is facing a $1 billion budget deficit, but Mr. Blanton said that amount would be closer to $2 billion without the federal help. The total budget for K-12, not including capital costs, was $15.9 billion.
He’s hoping that in the next legislative session, state lawmakers will start thinking about how to finance education after the stimulus money is no longer available.