Friday News Roundup: Week of October 12-16

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.

Study Finds that California Furloughs Don’t Save As Much As Expected

Big Ten Schools Suffer from State Budget Cuts

Louisiana State Board of Elementary and Secondary Education Passes Tentative Budget

Pennsylvania Finalizes Budget, School Districts Adjust

Study Finds that California Furloughs Don’t Save As Much As Expected
According to a study by the Center for Labor Research and Education at the University of California at Berkeley, California’s three-day-per-month furloughs for state workers aren’t saving as much as expected. The program was expected to save the state $1.3 billion this year, but the study predicts that the savings will be a little more than half that. The study also notes that the savings will decline as the real costs of furloughs come to light over the next few years. According to Ken Jacobs, chairman of the group that conducted the study, the state would actually save more money over the long term by imposing only one furlough day per month. More here…

Big Ten Schools Suffer from State Budget Cuts
Universities in the Big Ten conference are scrambling to make cuts to their budgets as state aid dwindles. While the University of Michigan and Ohio State University have managed to avoid cuts this year, the other schools in the conference are facing cuts ranging from about 1 percent to more than 5 percent for the current fiscal year – and more cuts loom for next year. Some schools, like Penn State and the University of Illinois, are depending on state aid to keep budget cuts low for this year. At Perdue, where 5.3 percent of the budget will be cut in the current fiscal year, faculty will not receive merit salary increases, among other cuts. Other schools are halting construction projects and shutting down during breaks from classes. Many universities still have not determined all the cuts necessary to avoid shortfalls. More here…

Louisiana State Board of Elementary and Secondary Education Approves Tentative Budget
The Louisiana State Board of Elementary and Secondary Education (BESE) this week approved a $3.276 billion preliminary education budget for fiscal year 2011. State regulations require agencies to submit preliminary budgets by November 5^th so that the governor’s office can begin assembling an executive budget. Changes can be made to the budget later in the process, and many Louisiana school district superintendents believe changes are necessary. The approved K-12 budget recommendation includes a 2.75 percent increase, a growth factor that is normally included in the school funding formula, but which state superintendents waived in the current fiscal year to help the state avoid deficit spending. But now superintendents believe they will need more than the 2.75 percent, or $62.25 million, increase to keep schools running, especially given decreasing local tax revenues and significant increases in retirement and health care benefits for teachers and other school employees. The BESE will be able to make changes to its recommendations when firmer financial data are available before the final budget goes before the state legislature. More here…

Pennsylvania Finalizes Budget, School Districts Adjust
After a standoff between Governor Ed Rendell and the state legislature over spending priorities, Pennsylvania finalized its state spending plan on October 9 – 101 days after the deadline. School districts, on the other hand, had to approve their 2009-10 budgets on time, over three months ago. As a result of the state’s delay, district leaders had to estimate state contributions to K-12 education. While some districts planned cautiously, others overestimated their chunk of the $27.8 billion education budget, and must find ways to scale back. Thanks to federal stimulus dollars, however, the state’s education budget actually increased by $300 million, or about 5.7 percent, to provide increased subsidies and grants for schools. Despite the influx in federal money, some programs didn’t receive increases, while others were eliminated completely. The state will freeze spending on special education, Pre-K Counts, Head Start, and Accountability Block Grants at the 2008-09 level, while Classrooms for the Future, Teen Pregnancy and Parenthood, and Safe and Alternative Schools programs will be eliminated. More here…

Briefly Noted

• Hawaii furloughs won’t close gaps – more layoffs may loom.
• Florida governor warns agencies to brace for cuts as Education Department requests more.