Friday News Roundup: Week of May 24-28

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.

Illinois Lawmakers Leave Tough Budget Questions for Governor Quinn

Louisiana Lawmakers Begin Budget Work Despite Dispute

Oregon Lawmakers Clash Over How to Balance State Budget

Illinois Lawmakers Leave Tough Budget Questions for Governor Quinn
Unable to agree on how to pay for state pension payments for all state employees in fiscal year 2011, the Illinois State Senate and House of Representatives left it up to Governor Pat Quinn to decide. However, the state Senate recently rejected his initial proposal to borrow $3.7 million to cover the payments. Governor Quinn must present another plan to pay for the pensions that falls within the unbalanced budget state legislators passed. The state operating budget for the coming 2011 fiscal year is $26 billion, with $4.6 billion in general state aid for K-12 education, the same as the current 2010 fiscal year budget. However, grants to school districts for transportation, special education, and other programs will drop by $300 million from the current levels to $1.6 billion. The rest of the budget is divided in large, lump sums which Governor Quinn will have to divvy up for specific programs. Higher education falls under these large lump sums, and could see a substantial cut. More here…

Louisiana Lawmakers Begin Budget Work Despite Dispute
This week the Louisiana House of Representatives Appropriations Committee passed a fiscal year 2011 budget bill after a one week delay. The $25 billion budget proposal would slash funding for colleges and charity hospitals. The cut to Louisiana colleges would amount to $50 million and, university officials say, would damage campuses and harm student instruction because it comes on the heels of $250 million in cuts over the past year and a half. The cuts to higher education and charity hospitals are only part of a plan to close a $1 billion gap in the state’s fiscal year 2011 budget. As the budget bill moves forward, lawmakers expect to see reductions to nearly every agency’s budget. Governor Bobby Jindal has proposed laying off up to 1,000 state employees and making reductions to social services, mental health care, the Medicaid program, and education programs outside the state’s main funding formula. The bill will now go to the full House of Representatives. More here…

Oregon Lawmakers Clash Over How to Balance State Budget
Facing a $563 million budget shortfall caused by lower-than-expected income tax collections, Oregon lawmakers are clashing over how to close the gap. Governor Ted Kulongoski has proposed an across-the-board 9 percent cut to all state agencies. Republicans in the state Senate have requested a special session so that legislators can make more targeted cuts, hoping to spare K-12 education from the $200 million it would lose in state aid under Governor Kulongoski’s plan. Many Democratic lawmakers argue that it is too soon to call a special session of the legislature because the budget numbers are not yet finalized. More here…