Friday News Roundup: Week of September 21-25

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.

No Middle Ground on New Mexico Schools Budget

Oklahoma Amendment Could Mean Tax Hikes

Ohio Slots Ruling Puts Budget Up in the Air

California Community Colleges will Receive Less Stimulus Money than Expected

No Middle Ground on New Mexico Schools Budget
New Mexico Governor Bill Richardson held a closed-door meeting earlier this week with state legislators to develop a plan to patch $400 million in holes in the state budget. Although Governor Richardson has refused to cut any funding from the state K-12education budget, lawmakers have suggested that such cuts will be necessary to offset revenue shortfalls. They have suggested loosening certain state mandates, such as caps on class sizes, so that school districts can have more flexibility in spending. Though Governor Richardson has not given any ground on cuts to education, he has agreed to talk with education leaders to determine if schools can absorb some cuts without hurting classroom instruction. Elementary and secondary education currently account for 45 percent of the state’s budget. More here…

Oklahoma Amendment Could Mean Tax Hikes
Oklahoma lawmakers have proposed a constitutional amendment requiring a dramatic increase in state spending for education. The Helping Oklahoma Public Education (HOPE) amendment would require the state to spend an additional $850 million over the next three years to meet the regional per-pupil spending average – but some worry that the increase could mean tax hikes. The Oklahoma Education Association, the state’s largest teachers union, says that normal growth in the state’s economy and tax revenue would be sufficient to cover the increased funding for education. The HOPE initiative seeks to amend the state’s historically low investment in education, including the lowest per-pupil expenditure in its seven-state region. Voters will decide on the measure in November 2010. More here…

Ohio Slots Ruling Puts Budget Up in the Air
The Ohio state education budget has a $933 million hole in it thanks to a state Supreme Court’s recent ruling that delays a decision on slot machines at state’s race tracks. The current budget, approved in July, assumes revenue from slot machines will help keep public education and other state services up and running. But the Ohio Supreme Court ruling means that machines can’t be installed until voters agree to install them – a vote that will not occur until May 2010 at the earliest. Though Governor Ted Strickland has taken a hard stance against raising taxes, he refused to rule out tax hikes in light of the ruling. Ohio Senate Republicans say that Governor Strickland could also cut the money from the budget approved in July, noting that they made suggestions for cuts in their budget proposal earlier this year. Governor Strickland said he has not yet made a decision about how to proceed. More here…

California Community Colleges will Receive Less Stimulus Money than Expected
An error in California’s planning for fiscal year 2010 will mean less money for community colleges than the state initially expected to receive under federal economic stimulus programs. The state legislature expected $130 million in federal stimulus money for community colleges, but the two-year institutions will only actually receive $35 million this fall, with an additional $4 million likely next fall. The additional money would have helped community colleges avoid cuts to programs for low income and disabled students, but now many of these programs may be cut altogether. With enrollment at record levels and no additional money expected over the coming years, there is little college leaders can do to keep these programs running. It’s not clear what caused the $100 million planning mistake. More here…

Briefly Noted

• Connecticut special education will benefit from stimulus money.