Friday News Roundup: Week of January 18-22

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.

California Study Finds Poorest Kids are Hit Hardest by Recession

Kentucky Contemplates Slots to Avoid Budget Cuts

Arizona Universities Receive Overdue State Aid

Georgia Governor Proposes Teacher Furloughs to Balance Budget

California Study Finds Poorest Kids are Hit Hardest by Recession
A report released this week by researchers at the University of California at Los Angeles shows that the state’s poorest students have been hit hardest by the economic recession. Three out of four principals interviewed for the study said they have had to increase class sizes in elementary schools and cut or eliminate summer school programs in the past year. But these cuts have been deeper in schools serving low-income students than in more affluent areas – 66 percent of principals in low income schools reported having to lay teachers off, while only 15 percent of principals in high income schools had the same problem. Cuts to social services amplify the effects on students living in poverty, whose families are receiving less aid as well. At the same time, schools are seeing increasing numbers of students in need as families lose jobs, homes, and health care coverage. Statewide, the number of students qualifying for free and reduced price lunches is up by 3 percent – a total of 132,000 students. More here…

Kentucky Contemplates Slots to Avoid Budget Cuts
Kentucky Governor Steve Beshear urged state lawmakers to legalize slot machines at horse tracks as a way to avoid budget cuts, including cuts in education programs. He says that the slots would generate $780 million in revenue over two years, allowing the state to avoid an estimated 12 percent budget cut in fiscal year 2011 and 34 percent in fiscal year 2012. His proposal does not include any tax increases for fear that they would push the state’s economy deeper into recession. He also said he hopes that the U.S. Congress will pass a second economic stimulus bill, allowing him to raise K-12 teacher salaries by 1 percent. More here…

Arizona Universities Receive Overdue State Aid
Arizona’s public universities received their monthly state aid for the month of December this week – 20 days after it was due. The state owed the three public universities a total of $75 million from last month, and this was the third time payments were delayed in 2009. January’s payment is due in a few days, but university officials say they’re not sure when to expect a check. Universities have had to dip in to their emergency reserves to keep their doors open, and they worry that continued delays could affect courses and services or even their credit ratings. Arizona law mandates that public education remain “as nearly free as possible,” but does not specify an amount the state must contribute in the form of general subsidies. One lawmaker warned that this could leave education funding vulnerable at the end of fiscal year 2011 when the current budget expires. More here…

Georgia Governor Proposes Teacher Furloughs to Balance Budget
Georgia Governor Sonny Perdue recently proposed a plan to cut spending from the current fiscal year 2010 budget by $1.2 billion. He also released his budget proposal for fiscal year 2011, which includes no new taxes but increases spending by $800 million. In fiscal year 2010, Governor Perdue’s plan would require k-12 teachers and other state employees to take three more furlough days, which would add up to six total for the year. Teachers will not receive raises in either year, and the basic education funding formula will be cut by $450 million for the remainder of fiscal year 2010 and $527 million in fiscal year 2011. Savings will come from teacher furlough days, cuts to teacher, administrator, and staff health care benefits, and classroom cuts. More here…

Briefly Noted

• Idaho lawmakers adopt gloomy revenue forecast, must make deep cuts to current budget.
• Nebraska budget cuts will mean fewer teachers and courses, higher postsecondary tuition.