Friday News Roundup: Week of January 16-20

Virginia Governor McDonnell added millions to shrink class sizes, correct error

Missouri lawmakers may buck higher education cuts

Arkansas Governor Mike Beebe proposes $163 million budget increase for next fiscal year

Maryland Governor O’Malley reveals 2013 budget

Virginia Governor McDonnell added millions to shrink class sizes, correct error
Previously, advocates for education spending expressed disappointment in Virginia Governor Bob McDonnell’s fiscal year 2013 budget proposal that cut education spending – including failing to keep pace with inflation, cutting tax revenues earmarked for schools, and reducing funds to recruit staff in Northern Virginia. But this week, he announced that the state had used outdated data in calculating spending for class size reductions in poor schools. With the updated data, the proposal will provide an additional $47 million for education. Calculations for class size reductions funding are based on the number of students eligible for the free or reduced-price lunch program. State officials had used the data from the 2011 school year; however, with the economy continuing to lag, more students will be eligible for the program next year, bumping up the amount of money the state will provide to shrink class sizes in low-income schools. More here…

Missouri lawmakers may buck higher education cuts
Missouri Governor Jay Nixon’s fiscal year 2013 budget proposal includes 12.5 percent — $106 million – in cuts to the state’s higher education spending from fiscal year 2012 levels, bringing state aid to the college and university systems to its lowest level since 1997. Officials from the University of Missouri system say that such substantial cuts could force tuition hikes, cuts to course offerings, and employee furloughs. Missouri State University would see state aid cut by about $11 million, with another $4 million budget shortfall from rising costs. Last year, the state legislature passed a 5.5 percent cut to higher education spending, even though the governor had proposed a 7 percent cut. Governor Nixon later further limited spending through new regulations. Some state legislators say they are reluctant to pass a budget that cuts higher education by so much again, while others argue the governor will simply make additional cuts through other channels like he did last year if the legislature doesn’t pass his proposal. More here…

Arkansas Governor Mike Beebe proposes $163 million budget increase for next fiscal year
Arkansas Governor Mike Beebe proposed a fiscal year 2013 budget that would add $163 million in spending increases over fiscal year 2012 levels.  Most of that funding would be directed to Medicaid funding. But a $56.6 million increase would go to the state’s K-12 public schools. A $3.3 million increase would be earmarked for the state’s college and university system. But, under the formula by which higher education funds are distributed, only some schools would receive a portion of the money, while others would receive no funds through the increase. Some of the increased funding, according to the governor’s offset, is offset by cuts to other agencies. More here…

Maryland Governor O’Malley reveals 2013 budget
Maryland Governor Martin O’Malley’s fiscal year 2013 budget proposal, released this week, totals $35.9 billion. It includes about $5 billion for K-12 schools, a $108.5 million increase from fiscal year 2012. The plan also includes $373 million in funds dedicated to school construction, bringing the 6-year total for school construction and renovation to $2 billion. One of the most controversial provisions in the plan, though, is his proposal that would require counties to aid the state in fulfilling teacher pension payments. According to the governor’s office, the state will owe $946 million in education employee pensions during fiscal year 2013; he is asking counties, who currently pay only the Social Security costs for education employees, to also contribute $239 million to pension costs, which are currently paid for entirely by the state. More here…