Friday News Roundup: Week of April 19-23
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.
<p><b><img alt="" src="/downloads/Roundup_15.JPG" align="right">Oklahoma Governor’s Revenue Plan Could Save Schools from Drastic Cuts</b></p> <p><b>Sluggish State Revenues in Missouri Lead to More Cuts for Schools</b></p> <p><b>End of Nebraska Legislative Session Brings No Relief to Lawmakers</b></p> <p><b>California</b><b> Report Highlights Need to Graduate More Students from State University Systems</b></p> <p><b>North Dakota</b><b> Higher Education Costs Ranked Most Stable in the Nation</b></p> <p> </p><p><b>Oklahoma Governor’s Revenue Plan Could Save Schools from Drastic Cuts</b><br>Oklahoma Governor Brad Henry this week <a href="http://www.newsok.com/oklahoma-gov.-brad-henrys-budget-recommendations-would-prevent-some-education-cuts/article/3456125?custom_click=pod_headline_education">proposed a plan</a> to increase state revenue in an attempt to reduce the budget cuts necessary to balance the state’s upcoming fiscal year 2011 budget. Facing a revenue shortfall of over $1 billion, state agencies are currently facing an across-the-board 10 percent budget cut. Under Governor Henry’s plan, which would end selected tax benefits, refinance bonds at a more favorable rate, and increase taxes on Internet sales, that across-the-board cut would be reduced to 3 percent. If Governor Henry’s plan fails, Oklahoma’s public K-12 schools would lose $244 million in fiscal year 2011, leaving their funding near 2006 levels. More <a href="http://www.newsok.com/oklahoma-gov.-brad-henrys-budget-recommendations-would-prevent-some-education-cuts/article/3456125?custom_click=pod_headline_education">here</a> and <a href="http://newsok.com/article/3455325">here</a>…</p> <p><b>Sluggish State Revenues in Missouri Lead to More Cuts for Schools</b><br>Missouri Governor Jay Nixon this week announced <a href="http://www.google.com/hostednews/ap/article/ALeqM5h-PUz6D-3aeG93eUxN2ZCWrRiB6QD9F8BENO4">cuts to the state budget</a> totaling more than $45 million, including cuts for public K-12 education and early learning programs. With tax collections down by 19 percent compared with this time last year, the state has had to cut over $900 million from the current fiscal year 2010 budget over the course of the year. This round of cuts included $8 million from state aid for public school transportation, bringing the total cuts to transportation made this year to $12 million. Governor Nixon also cut $4.9 million from the Parents as Teachers early childhood development program, bringing the total cuts to that program to $6.9 million for the year. With revenue remaining slow, the funding picture for fiscal year 2011 is looking equally bleak – transportation and Parents as Teachers are likely to see additional cuts when that budget is complete. <a href="http://www.google.com/hostednews/ap/article/ALeqM5h-PUz6D-3aeG93eUxN2ZCWrRiB6QD9F8BENO4">More here…</a></p> <p><b>End of Nebraska Legislative Session Brings No Relief to Lawmakers</b><br>Nebraska’s legislative session ended this week, but legislators left without a sense of relief that normally comes with the end of the session. According to most predictions, legislators will have to grapple with a <a href="http://www.omaha.com/article/20100419/NEWS01/704199917">budget shortfall of $679 million</a> for the two-year budget period starting in July of 2011 when they reconvene in January 2011. Tax increases are regarded as unlikely, so most of the shortfall will have to be made up with budget cuts and an estimated $270 million from state reserve funds. Governor Dave Heineman says his priority will be preserving K-12 school aid, but even schools will have to take a cut of some sort. Members of the state Senate have vowed to spend the coming months looking for solutions. <a href="http://www.omaha.com/article/20100419/NEWS01/704199917">More here…</a></p> <p><b>California</b><b> Report Highlights Need to Graduate More Students from State University Systems</b><br>A report released this week by the Public Policy Institute of California concluded that state universities should <a href="http://www.mercurynews.com/breaking-news/ci_14939051">expand their standards</a> for the percent of students eligible for admission to the University of California (UC) and California State University (CSU) systems. Currently, the UC system admits the top 12.5 percent of graduating public high school seniors, while the CSU system accepts 33 percent. The report recommends that those numbers be raised to 15 percent and 40 percent, respectively. If the state does not expand eligibility for the university systems, the Public Policy Institute predicts that California will be short 1 million educated workers by 2025. Challenges to implementing the recommendations include budget shortfalls and capacity. The reports author, Hans Johnson, predicts that the state would need to spend an additional $1.6 billion per year to pay for these new students. The university system would also need to expand classroom and on-campus housing capacity to accommodate more students. <a href="http://www.mercurynews.com/breaking-news/ci_14939051">More here…</a></p> <p><b>North Dakota</b><b> Higher Education Costs Ranked Most Stable in the Nation</b><br>The University of North Dakota and the North Dakota State University rank <a href="http://www.grandforksherald.com/event/article/id/158777/">highest in the nation</a> for tuition stability, according to a study released by Forbes magazine this week. The Forbes study examined 164 major research institutions on three questions: what kind of pressure will the state budget deficit put on university budgets; what’s the gap between in-state and out-of-state tuition; and are there economic trends that could put pressure on tuition in the future? North Dakota is one of only two states facing a budget surplus, and with oil royalty payments expected to remain high for at least ten years, the state legislature is in good position to continue its investments in higher education and keep tuition stable. <a href="http://www.grandforksherald.com/event/article/id/158777/">More here…</a></p><p><!--break--></p>