Friday News Roundup: Week of October 25-29

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.

Alabama Education Officials Call for Change to Education Funding Structure

Oregon Higher Education Enrollment Rising Along with Costs

Texas Higher Education Agency Calls for Reinvention of Public Higher Education

Louisiana Governor Orders Cuts to Higher Education, Other Agencies to Rebalance Budget

Alabama Education Official Calls for Change to Education Funding Structure
Alabama Deputy State Superintendent of Education Craig Pouncey this week told the State Board of Education that the Alabama tax system is no longer an adequate funding source for the state’s education budget. Citing stagnant tax collections and budget cuts over the past three years, Pouncey said that relying on tax collections that fluctuate with the economy puts necessary educational services in danger. Pouncey noted that the state will likely have to make across-the-board cuts to the current 2011 budget because tax collections continue to be lower than expected. In addition, unlike other states, local communities rely almost entirely on state funding to support education instead of local property taxes and other sources. Because low income areas have lower property tax revenues than higher income areas, they are especially susceptible to state budget reductions. More here…

Oregon Higher Education Enrollment Rising Along with Costs
Enrollment at all seven of Oregon’s state universities and 17 community colleges is predicted to reach a record high this school year. But with cuts to the state’s higher education grant programs, many students will pay more in tuition. Officials say tuition increases are likely in the 2011-12 school year, but students may feel the effects even sooner. The Oregon Student Assistance Commission’s budget was cut by $7 million in the fiscal year 2011 budget. And with higher than expected enrollment, which led more students to claim the grants for which they qualified, the Commission awarded $76.7 million in grants – significantly more than it could pay for. The Commission may have to cut grant awards for the winter and fall semesters of the current 2010-11 school year and will likely award fewer grants in the 2011-12 school year given its current fiscal year 2011 budget of $22.5 million. More here…

Texas Higher Education Agency Calls for Reinvention of Public Higher Education
The Texas Higher Education Coordinating Board this week recommended that Governor Rick Perry and the state legislature reduce spending on higher education by revising the state funding formulas for institutions of higher education and financial aid. The board’s proposal, which would require legislative action, would make 10 percent of funding for the state’s colleges and universities dependent on student outcomes. For four-year institutions, this would include graduation rates, number of degrees awarded, degrees awarded to students from low-income families or other at-risk groups, and number of degrees awarded in high-need fields like science, technology, engineering, and math. Similar indicators would be used for community colleges. Currently, funding is strictly tied to enrollment numbers. Changes would also be made to the Texas Grants program which provides financial aid to students from low-income families. Under the Board’s proposal, students with strong academic credentials would get priority for aid. More here…

Louisiana Governor Orders Cuts to Higher Education, Other Agencies to Rebalance Budget
This week, Louisiana Governor Bobby Jindal cut $107 million from the state’s fiscal year 2011 budget, with most cuts coming from higher education and health care. About one third of the cut – $35 million – would come from the state higher education budget. Most of these cuts would come from the Louisiana State University system, which has said it will cut spending on its animal disease lab and close parts of a new research facility. The Southern University system has said it will have to lay off 36 employees. The $107 million cut is necessary because the state overspent in fiscal year 2010 compared to tax collections for the fiscal year, which ended in June. Since state law doesn’t allow deficit spending, Governor Jindal had to rebalance the current fiscal year 2011 budget to make up for last year’s revenue shortfall. More here…