Friday News Roundup: Week of December 7-11

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.

Washington Higher Ed Budget Could See More Cuts

Alabama Schools Spending More Than They Receive

Stalemate in Ohio Legislature Could Mean Deep Cuts to Schools

Minnesota Education Budget to See Cuts in Upcoming Fiscal Year

Washington Higher Ed Budget Could See More Cuts
Washington Governor Chris Gregoire this week submitted a balanced budget proposal for the 2009-11 biennium that cuts $89.5 million from public higher education. State law requires the governor to submit a supplemental budget proposal that eliminates the state’s current $2.6 billion shortfall without including any new tax revenue, which this one does. However, Governor Gregoire plans to submit an additional budget proposal next week that will close the shortfall using both budget cuts and tax revenue. Cuts to higher education are likely to appear in next week’s version as well due to rules about where budget cuts may come from. More here…

Alabama Schools Spending More Than They Receive
Alabama state education officials this week presented a report to the State Board of Education showing the impact of education budget cuts on schools. The report shows that almost all school districts in Alabama spent more than they received in the fiscal year ending on September 30^th. Districts have had to borrow from banks and empty savings accounts in order to cover employee salaries and benefits, which were locked in for the school year before Governor Bob Riley cut the K-12 education budget by 7.5 percent due to tax revenue shortfalls. The state school board submitted a request for $3.8 billion for public schools in the 2010-11 school year, up from $3.5 billion this year, but the proposal is likely to be contentious in the state legislature. More here…

Stalemate in Ohio Legislature Could Mean Deep Cuts to Schools
Ohio education officials are urging legislatures to find a compromise in the state’s budget standoff. A hole of $851 million in the state’s budget remains after a plan to place slot machines at the state’s racetracks—money that was earmarked for public K-12 education—fell through. Governor Ted Strickland has proposed to fill the shortfall by delaying this year’s 4.2 percent income-tax cut, a plan passed in the state House and supported by Democrats in the state Senate. Majority Republicans in the Senate say they will vote for the plan, but only if the bill includes provisions changing public-construction law and criminal-sentencing rules. If legislators cannot come to an agreement before December 31^st, Governor Strickland’s plan will no longer be viable, and cuts of up to 13 percent will have to be made to the K-12 education budget. More here…

Minnesota Education Budget to See Cuts in Upcoming Fiscal Year
Minnesota state economists this week detailed the state’s projected $1.2 billion budget deficit for the current 2010 fiscal year in front of the University of Minnesota’s Board of Regents. The deficit will force Minnesota lawmakers to make difficult decisions on where to invest money and where to make cuts. State officials will likely feel pressure to focus spending on the health and care of the aging baby boomer population. But these investments would likely come out of K-12 education, infrastructure, and higher education budgets. University President Bob Bruininks argued that the state’s problems could only be fixed by investing in education for its citizens, equipping the upcoming workforce with skills and technology. Governor Tim Pawlenty said he will consider cuts to programs across the board to fill the deficit. More here…

Briefly Noted

• South Dakota school districts face cuts in the state’s fiscal year 2011 budget proposal.