Friday News Roundup: Week of October 11-15

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.

Federal Funds Arrive Too Late in New Jersey School Districts to Avert Layoffs

Pennsylvania Senate Approves School Employee Pension Overhaul

Michigan Governor Vetoes Stimulus Fund Distribution Formula

Federal Funds Arrive Too Late in New Jersey School Districts to Avert Layoffs
New Jersey received $268 million in federal funds through the Education Jobs Fund of 2010, but officials say it arrived too late to save many teacher jobs in the current 2010-11 school year. School districts in New Jersey received the money in late September with instructions from the state’s Department of Education to save the money for the 2011-12 school year. However, school district officials are concerned that the state will further cut state funds due to the presence of the additional federal funds, making it difficult to rehire or retain existing staff with the funds. In that case, officials say they might have to lay off staff despite the federal stimulus funds. More here…

Pennsylvania Senate Approves School Employee Pension Overhaul
The Pennsylvania State Senate this week approved a bill that would overhaul the pension systems for state and public school employees. The bill would reduce future pension benefits by 25 percent, bringing them below 2001 levels. The reduction is intended to help the state avoid an upcoming spike in pension costs that would complicate state and school district budgets. A different version of the bill was already approved in the State House of Representatives, but because significant changes were made to the Senate passed version, it will have to be approved again by the House before it goes to the governor’s desk. More here…

Michigan Governor Vetoes Stimulus Fund Distribution Formula
Michigan Governor Jennifer Granholm this week vetoed a bill that would have determined the formula used to distribute federal stimulus funds from the Education Jobs Fund of 2010 to school districts. Under the formula passed by the legislature, each school district in Michigan would have received $154 per student, plus an additional $23 to $46 per pupil depending on existing spending levels in each district. School districts that currently spend less per pupil would have received a higher amount than those that spend more. Governor Granholm rejected the formula, citing guidance from the U.S. Department of Education stating that funds must be distributed using a needs-based formula. A new formula will likely give an even greater share of funds to school districts where current spending is low. More here and here…

Briefly Noted

• Nebraska education commissioner asks teachers to take one or two furlough days before the end of 2010.