Friday News Roundup: Week of May 25-29

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.

North Carolina May Drop Some Standardized Tests

Some States May Base College Funding on Graduation Rates

Governor Schwarzenegger Threatens to Cut Need-Based Aid

National Center for Education Statistics Releases The Condition of Education

North Carolina May Drop Some Standardized Tests
North Carolina legislators are planning to do away with some of the state’s standardized tests. In her budget, Governor Beverly Perdue proposed eliminating end-of-course exams in several math and science subjects that are not required for graduation or by federal law. The state Senate’s budget proposal is aligned with Governor Perdue’s proposed cuts, while the House version would cut fewer tests based on the recommendations of state education officials. Even before the cuts were proposed in the budget, education officials were contemplating changes to the testing system. Last month, the State Board of Education voted to eliminate some tests for third grade students to save money. The new cuts are supported by the North Carolina Association of Educators as a way to give teachers more freedom in the classroom. More here.

Some States May Base College Funding on Graduation Rates
Lawmakers in some states are considering tying funding for public institutions of higher education to graduation rates. Although this concept has been tried before, new proposals in several states would involve more money and focus more on student achievement than previous iterations. In Ohio, legislators appear likely to adopt a plan that would base 100 percent of higher education spending on course and degree completion. The plan specifically targets degrees in science, technology, engineering, and math. Indiana officials are considering a similar but more modest plan. In Missouri, a plan could tie funding to student performance on licensing exams in certain fields. Washington state’s community and technical colleges would be rewarded when students reach certain milestones toward earning credentials under the state’s plan. Under Florida’s existing plan, community college completion rates rose by 43% between 1997 and 2007. More here.

Governor Schwarzenegger Threatens to Cut Need-Based Aid
On Tuesday California Governor Arnold Schwarzenegger released a plan to eliminate the state-funded Cal Grant program. The grant program provides low-income, in-state students up to the full cost of state public universities, an allowance of up to $9,708 for private universities, or cash for expenses at community colleges. Under the governor’s plan, all new Cal Grants would be eliminated, including those already offered to incoming freshman for the fall semester. Existing grants to students currently enrolled in the program would continue, but would no longer increase to match cost increases. As a result, state school systems are scrambling to make alternative arrangements for students who were relying on Cal Grants For example, the UC system is considering reallocating existing funding pools or increasing fees to put more money in the pools, though no plan has yet been set in place. More here.

National Center for Education Statistics Releases The Condition of Education
The National Center for Education Statistics (NCES) this week released its annual report, The Condition of Education 2009. The report presents 46 indicators focusing on participation and persistence in education, student performance and other measures of achievement, the learning environment, and resources for education. Overall, average student achievement improved or stayed the same (except the National Assessment of Educational Progress 12^th grade reading score, which dropped by 6 points). Achievement gaps between white and Hispanic students and white and black students narrowed in some cases, but in others they remained constant. The high school graduation rate slipped from 74.7 percent in 2004-05 to 73.4 percent in 2005-06. College enrollment rates have fluctuated between 62 and 69 percent between 1997 and 2007, with differences in enrollment rates among Black, Hispanic, and White students persisting over time. Student loans were issued to 73 percent of full-time, first-time undergraduates in 2006-07, with students at private institutions receiving loans at the highest rate (85 percent). View the full report here.

Briefly Noted

• In Los Angeles, the school district cancels the bulk of its summer school programs; teachers go on a hunger strike to protest job cuts.
• New Jersey Supreme Court upholds new school financing formula (background here).