Friday News Roundup: Week of April 9-13

Legislators plan lawsuit to trim aid to shrinking Pennsylvania schools

California teachers’ pension faces $65 billion shortfall

Missouri Senate panel endorses roughly $24 billion budget plan

Idaho State University, University of Idaho to seek smaller tuition increases

Legislators plan lawsuit to trim aid to shrinking Pennsylvania schools
Ten Pennsylvania state legislators are planning to file a lawsuit in Commonwealth Court to end a section of the state’s education finance formula that they argue is unconstitutional.  The “hold harmless” provision guarantees districts at least the same base state funding as they received the previous year, regardless of enrollment shifts.  By overturning the provision, the lawmakers hope to win extra money for fast-growing districts and reimburse them for the funds they would have earned had the provision not been implemented in 1991.  According to one legislator involved with the case, approximately three-quarters of the state’s school districts would stand to lose funds if the provision is overturned.  Because so many lawmakers’ constituents would be negatively affected, he said, a political solution would be difficult to reach. More here…

California teachers’ pension faces $65 billion shortfall
Figures released this week by the California State Teachers’ Retirement System (CalSTRS) show that the pension fund contains only 69 percent of what it needs to cover the cost of the benefits owed over the next thirty years.  To put itself in a secure financial position, CalSTRS deputy chief executive Ed Derman said, the program would need to increase its cash intake by 13 percent over the next three decades – something that would require legislative approval.  This will be problematic, given that lawmakers are currently preparing to debate the governor’s proposal to cut state pension contributions.  The California teachers’ pension system is the second-biggest public pension fund in the country, and its thirty-year shortfall could top $64 billion. More here…

Missouri Senate panel endorses roughly $24 billion budget plan
A fiscal year 2013 budget approved by the Missouri State Senate Appropriations Committee this week totals $24 billion, about $86 million less than the state House approved in its version of the budget.  The plan would cut money for state pre-kindergarten grants and child care subsidies for low-income parents. However, state funding for public institutions of higher education would remain unchanged at fiscal year 2012 levels, as was the case in the House despite a proposal from the governor to cut funding for higher education by 15 percent.  Additionally, public K-12 schools would receive a slight increase in funding – $5 million over 2012 levels. The budget plan is now subject to a vote by the full Senate, which must be completed by May 11, according to law.  More here…

Idaho State University, University of Idaho to seek smaller tuition increases
Idaho State University is set to reveal its lowest tuition increase request in over ten years at an Idaho State Board of Education meeting next week.  Over the past ten years, ISU’s tuition increases have ranged from 4.75 percent in 2006 to 9 percent in 2010.  In 2013, however, the institution is requesting a 4.73 percent increase over current 2012 academic year tuition levels.  The University of Idaho is also recommending a smaller tuition increase – 6.1 percent – than it has in recent years.  This increase would provide a 2 percent salary bump for system employees.  The Idaho legislature voted earlier this year to lift state spending on higher education, providing more than $18 million in additional state funds for public colleges and universities in fiscal year 2013 as it did in 2012. More here…