Friday News Roundup: Week of July 5-9

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.

 <p><b>Despite Cuts, North Carolina Budget Would Save Teacher Jobs</b></p>    <p><b>State Aid for School Districts in Michigan Lagging </b></p><p><b>Four Pennsylvania State Schools’ Funding Remains </b></p><p><b>Indiana Could Save $450 Million on School Insurance </b></p><p><b>State Aid for School Districts in Michigan Lagging</b><br>  Michigan Governor Jennifer Granholm this week <a href="http://record-eagle.com/local/x2016066879/State-aid-for-school-districts-lagging" target="_blank">signed the 2010-11 state school budget</a> including an $11 per student increase in state aid. However, this increase pales in comparison to the $165 per student cut districts faced in school year 2009-10. The next base per student funding level is $7,162. The new state budget also increases the rate districts must pay into the state’s retirement system from 16.9 percent to 19.4 percent, significantly increasing costs for districts. That rate could change once the state is better able to estimate the impact of recent changes to the state’s teacher retirement system. <a href="http://record-eagle.com/local/x2016066879/State-aid-for-school-districts-lagging" target="_blank">More here…</a></p> <p><b> Four Pennsylvania State Schools’ Funding Remains </b><br> Pennsylvania Governor Ed Rendell this week <a href="http://www.pittsburghlive.com/x/pittsburghtrib/news/s_689437.html#" target="_blank">signed the appropriations bill for 2010-11</a> for the state’s 14 state universities and four state-related schools. The recently approved budget maintains 2009-10 levels of funding for higher education including $503 million for the 14 state universities and over $688 million for the state-related schools. For the most part, university officials are grateful for the continued funding levels. But some are concerned that funding could drop significantly in 2011-12 and beyond once federal stimulus funds run out. Currently, stimulus funds account for $69 million of the total higher education budget. <a href="http://www.pittsburghlive.com/x/pittsburghtrib/news/s_689437.html#" target="_blank">More here…</a></p><p><b> Indiana Could Save $450 Million on School Insurance </b><br> A recent report by Mercer Health &amp; Benefits LLC found that Indiana’s public K-12 and higher education systems could save <a href="http://www.businessweek.com/ap/financialnews/D9GQVNN00.htm" target="_blank">$450 million annually</a> if they participated in the state’s health insurance plan for public employees. The state insurance plan provides lower coverage levels and requires higher out-of-pocket expenses for participants. Both State Superintendant of Public Instruction Tony Bennett and Republican leaders in the state legislature support this opportunity for significant savings. However, health insurance plans are typically negotiated at the local level through teacher union contracts, meaning the state would have to provide substantial incentives or mandate that districts participate in the state plan. While the state legislature has considered such a mandate in the past, they have shied away from it because they believe in local control. This debate will likely arise again during the 2011 legislative session. <a href="http://www.businessweek.com/ap/financialnews/D9GQVNN00.htm" target="_blank">More here…</a></p><p><b> Briefly Noted</b></p><p>New York Governor David Paterson <a href="http://www.businessweek.com/news/2010-07-08/new-york-s-paterson-vetoes-attempt-at-back-door-spending.html" target="_blank">vetoed a recent school spending bill </a>because it would have cost the state $600 million over two years.</p><p><!--break--></p>