Friday News Roundup: Week of July 20-24

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.

Separation of Degrees – A Report on Teacher Compensation

Illinois Cuts Millions from Education Budget

Budget Plan Approved in California Senate

Maryland Faces Budget Cuts, Preserves Money for K-12

Separation of Degrees – A Report on Teacher Compensation
The Center on Reinventing Public Education recently released “Separation of Degrees: State-by-State Analysis of Teacher Compensation for Master’s Degrees,” a report by Marguerite Roza and Raegen Miller. The report discusses the widespread practice of rewarding teachers for earning master’s degrees despite any evidence that these credentials improve student learning. In some states, more than 3 percent of the overall education budget is spent on compensating teachers for having earned master’s degrees. Given state education budget problems, the authors suggest that states abandon this compensation system. However, Roza and Miller suggest that teaching candidates with meaningful master’s degrees be given preferential consideration during hiring, and that principals consider participation in certain programs found to enhance teacher effectiveness as well. The authors conclude that if teachers anticipate higher pay based on their ability to enhance student achievement rather than degree completion, their interests would be better aligned with those of their students. Read the full report here.

Illinois Cuts Millions from Education Budget
In an emergency session, the Illinois State Board of Education recently approved a 2010 education budget that cuts $146 million compared to fiscal year 2009 levels. Early education lost $123 million, meaning that an estimated 30,000 children will lose preschool services this fall. Bilingual education was trimmed by 25 percent. Advocates for students learning English asked state officials how districts could be expected to serve the same number of students with $19 million less than they had last year. Other programs that saw serious reductions were gifted education, which was slashed completely from the budget; help for the blind and dyslexic; teacher recruitment for hard-to-staff schools; AP classes; and rewards for teacher certification. However, districts will receive $160 more per pupil under the state’s new funding plan, and funding for special education and other categorical spending will increase by $145 million. More here…

Budget Plan Approved in California Senate
The California State Senate approved a plan to close the state’s $26 billion budget shortfall for fiscal year 2009-10. The measure is expected to be approved quickly in the State Assembly and signed by Governor Arnold Schwarzenegger early next week. The budget plan contains $25 billion in cuts, including $9 billion from the education budget. The measure also includes an additional $5 billion in local-government borrowing. The remainder of the deficit would be closed using accounting maneuvers, revenue from new oil drilling, and the sale of a state insurance fund. Some economists predict that the state will face as much as $10 billion in additional shortfalls during fiscal year 2010 due to overly optimistic projections. While the budget measure allows the state to stop issuing IOUs to creditors, economists worry that it does not address the root of California’s budget issues. More here…

Maryland Faces Budget Cuts, Preserves Money for K-12
Maryland Governor Martin O’Malley recently proposed $280 million in cuts to the state budget for approval by the state Board of Public Works. Under the proposal, spending reductions would be made to higher education, health care, and advertising for the state lottery. However, the governor is resisting cuts to K-12 education, a central priority of his term. The proposal represents the first round of $700 million in cuts O’Malley hopes to make before Labor Day. If he is successful, fiscal year 2010 spending will be less than it was in fiscal year 2007. More here…

Briefly Noted:

• Georgia governor calls for teacher furloughs.
• U.S. House panel approves student loan overhaul.