Friday News Roundup: Week of February 15-19

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>Oregon</b><b> Lawmakers, Facing Bleak Budget Outlook, Call for Second Stimulus</b></p>     <p><b>New   Jersey</b><b>’s Poorest School Districts Would Lose Most Under Budget Freeze</b></p>     <p><b>Pennsylvania Governor’s Budget Proposal Generous to Education </b></p>     <p><b>Louisiana Governor Proposes Cuts Across Nearly All State Agencies</b></p>     <br /><p><b>Oregon</b><b> Lawmakers, Facing Bleak Budget Outlook, Call for Second Stimulus</b><br>Oregon state lawmakers are <a href="http://www.oregonlive.com/politics/index.ssf/2010/02/next_state_budget_needs_anothe.html">patching up</a> the state’s current fiscal years 2009-2011 budget and beginning to negotiate the 2011-2013 budget. The outlook is bleak. In the next two weeks, lawmakers are expected to approve minor changes to the current fiscal year 2009-2011 two year budget to shore up $185 million in shortfalls. The state will use reserve funds, what’s left of the state’s federal economic stimulus money, savings from reduced tax incentives, and some other small pots of money to prevent further cuts to the K-12 education budget. However, as lawmakers begin to look to the fiscal year 2011-2013 biennium, things only get worse. The state expects it will need $18.2 billion to maintain current services but only expects to collect $16 billion. Without another federal stimulus, lawmakers may have to shorten school days, close prisons, and cut back on health care coverage for the state’s poorest citizens. <a href="http://www.oregonlive.com/politics/index.ssf/2010/02/next_state_budget_needs_anothe.html">More here…</a></p>     <p><b>New   Jersey</b><b>’s Poorest School Districts Would Lose Most Under Budget Freeze</b><br>New Jersey Governor Chris Christie recently announced a <a href="http://www.nj.com/news/index.ssf/2010/02/njs_poorest_school_districts_w.html">freeze on state aid to school districts</a> in an effort to close a $2.2 billion fiscal year 2010 budget shortfall. The freeze, which would save the state a total of $475 million, would require school districts to spend 98 percent of their budget surplus money and 98 percent of the money in their reserve accounts before receiving any additional state aid this year. Seventeen districts will not be affected because they have already spent their surpluses and reserves. Because the state’s poorest districts receive the most state aid, they will see the deepest cuts, averaging about $3.2 million per poor district. The state’s wealthiest districts will only lose an average of $557,000. Though the poorer districts will lose more dollars, the wealthier districts are losing a greater percentage of their state aid. State education officials also warned school districts to expect a 15 percent across the board reduction in state aid next year. This will likely mean property tax increases for most residents in the state where property taxes are already the highest in the nation and average $7,000 per year.<a href="http://www.nj.com/news/index.ssf/2010/02/njs_poorest_school_districts_w.html"> More here…</a></p>     <p><b>Pennsylvania Governor’s Budget Proposal Generous to Education </b><br>Pennsylvania Governor Ed Rendell recently released his<a href="http://www.pennlive.com/midstate/index.ssf/2010/02/schools_make_out_well_in_rende.html"> $29 billion budget proposal</a> for fiscal year 2011. The budget proposal includes $12.3 billion for education, with $5.8 billion for basic K-12 school district operation, a $355 million increase over fiscal year 2010. The increase is driven by a funding formula the state implemented in fiscal year 2009 to more equitably distribute funds among school districts. Under the formula, school districts with lower per pupil spending receive larger increases than those that spend more. Governor Rendell hopes the increase in education funding will relieve the pressure on local communities to increase property taxes. <a href="http://www.pennlive.com/midstate/index.ssf/2010/02/schools_make_out_well_in_rende.html">More here…</a></p>     <p><b>Louisiana Governor Proposes Cuts Across Nearly All State Agencies</b><br>Louisiana Governor Bobby Jindal recently released a <a href="http://www.google.com/hostednews/ap/article/ALeqM5idAZUuW6Ux_D0D5kdYPSTio4RlIQD9DQU0KO1">$24.2 billion budget proposal</a> for fiscal year 2011 that would cut spending in most state agencies, but would be especially hard on health care services, government jobs, and education. The K-12 education budget would be reduced by $214 million from current fiscal year 2010 levels of $5.4 billion. However, the public school funding formula will remain at the 2010 level of $3.3 billion and will not receive the annual increase that has been built in for nearly ten years. College campuses will see no further cuts as they are already coping with three budget cuts over the last year and a half. University system management boards will see a reduction of $5 million, or 27 percent of their state funding. <a href="http://www.google.com/hostednews/ap/article/ALeqM5idAZUuW6Ux_D0D5kdYPSTio4RlIQD9DQU0KO1">More here…</a></p>     <p><b>Briefly Noted</b></p>  <ul type="disc"><li>Colorado      House passes <a href="http://www.businessweek.com/ap/financialnews/D9DUJHV80.htm">$475 million in cuts</a> to the current fiscal year 2010 budget,      targeting education, prisons, and Medicaid.</li></ul><!--break-->