Friday News Roundup: Week of September 25-October 1

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.

District of Columbia Public Schools Face $30 Million Special Education Budget Shortfall

Texas Budget Shortfall Will Likely Cost Schools Millions

Michigan Higher Education Institutions Will See 2.8 Percent Budget Cut in Fiscal Year 2011

South Carolina Bans New Construction at Colleges with Large Tuition Increases

District of Columbia Public Schools Face $30 Million Special Education Budget Shortfall
The District of Columbia’s public schools may be facing a $30 million budget shortfall for fiscal year 2011, which starts October 1, 2010. D.C. Chief Financial Officer Natwar Gandhi this week announced that his office had conducted an analysis of planned spending for special education and found that teachers’ aides and support services provided by specialists would cost $85.9 million in fiscal year 2011, $31.7 million more than the budgeted $54.2 million. Schools Chancellor Michelle Rhee argued that Gandhi’s analysis is premature, but vowed to take “any actions necessary” to balance the budget. Cuts would likely have to come in the form of layoffs – around 300 jobs could be on the chopping block. More here…

Texas Budget Shortfall Will Likely Cost Schools Millions
Texas is facing a $21 billion budget shortfall in the coming two year budget cycle, and officials say cuts are likely to come from the public schools budget. State Commissioner of Education Robert Scott has suggested over $260 million in cuts from the state’s $40 billion two-year education budget. The cuts would come largely from funds slated for new science labs, textbooks, and teacher development. The cuts would also force the state to roll back a new requirement that high school students take four years of science classes. At the same time, local tax revenues are dropping, forcing school districts to dip into reserves to keep up with costs as enrollment continues to rise. More here…

Michigan Higher Education Institutions Will See 2.8 Percent Budget Cut in Fiscal Year 2011
Public colleges and universities in Michigan will see a 2.8 percent cut in state aid in fiscal year 2011 compared to 2010. The state’s 2011 budget, which passed the legislature on Tuesday and is awaiting Governor Jennifer Granholm’s signature, allocates $1.567 billion for higher education, down from $1.612 billion in fiscal year 2010. The cut to higher education funding is part of the state’s effort to close a $484 million budget deficit. University officials are relieved that the cut is less than the predicted 3.1 percent, but say they will still likely have to raise tuition or cut programs to absorb the cuts. However, the approved budget does include about $100 million in scholarship and financial aid, an increase from fiscal year 2010 when Michigan Promise Scholarships were cut from the prior year’s level. More here…

South Carolina Bans New Construction at Colleges with Large Tuition Increases
South Carolina’s State Budget and Control Board this week instituted a ban on new construction at public institutions of higher education that significantly raised tuition this year. Four-year colleges and universities that raised tuition by 7 percent or more and two-year colleges that raised tuition by 6.3 percent or more are subject to the ban. To remove the ban, these schools must certify to the board that they will hold tuition at or below current levels for the spring 2011 semester. The ban does not apply to projects that have already been fully approved, deferred maintenance projects, or projects that deal with health and safety. More here…

Briefly Noted

• Indiana paid nearly $94 million to local school districts for 16,315 students no longer enrolled in the public school system in 2009.