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Themes in the news for the week of October 16-23, 2009
- 10-30-2009
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A weekly summary of themes in education news provided by UCLA's Institute for Democracy, Education and Access
Stimulus Saves 250,000 Education Jobs, but What Happens Next?
By UCLA IDEA staff
The stimulus funds may have blunted an education catastrophe, but many deep concerns remain about how states will manage as their revenues remain low and the stimulus funds run out.
The White House reports that the economic stimulus package has saved 250,000 education jobs; including 6,000 education jobs in Los Angeles. Still, many people who lost education jobs since the economic crisis began have not been replaced and schools continue to cut programs.
For many districts, San Diego Unified, for example, the stimulus funds helped save some jobs and programs, but the threat of layoffs, larger class sizes, and cuts to critical programs continues. The district cut $200 million from its budget in the past two years and is looking at cutting $119 million to $175 million next year (San Diego Union-Tribune). The Los Angeles Unified School District, already looking at a $258 million budget gap for next year, now faces an additional $221 million in potential cuts (Los Angeles Daily News).
The federal stimulus allocated approximately $100 billion for education nationally with $67 million already spent. Nearly $40 billion was appropriated specifically to stabilize state education budgets. According to the administration, “Filling these budget gaps has allowed the Recovery Act to avert layoffs of educators in school districts and universities across the nation, saving and creating at least a quarter of a million education jobs, while helping school districts make progress on reforms that will improve teaching and learning in America’s classrooms” (Politico). Further, the stimulus funds have enabled many states “to restore nearly all of their projected education budget shortfalls for fiscal 2009 and 2010” (Education Week).
Although, as United States Education Secretary Arne Duncan said, “catastrophic layoffs” (Los Angeles Times) were averted due to the stimulus funds, many educators and policymakers worry about education budgets once the funds run out in 2011. Education Week reports that the stimulus allocates funds over two years and many districts will spend relatively more in 2009-10, to make up for budget shortfalls thus setting up deep cuts the following year and even deeper in 2011-12.
Many states continue to experience deep deficits that threaten further budget cuts, and leave little room for new reform initiatives. While the stimulus funds will run out at the end of 2010-11, many states are predicted to experience declining revenue for many years to come. (U.S. News and World Report). A report released last week by the Nelson A. Rockeller Institute of Government, says that “state revenues are faltering and are likely to remain shaky for the next several years.” The study found that declines in state revenues are roughly twice what states have gained from the stimulus program so far (Education Week).
Kathy Novak, mayor of the Denver suburb of Northglenn, Colorado, and president of the National League of Cities discussed the issue of declining revenue. “…Property and sales taxes, the sources cities tend to rely upon the most, lag far behind the rest of the economy in any recovery. If the economy is beginning to bounce back, as some economists say, it still may take some time for employment, retail sales and property values to recover. And that means it could be two years or more before local government finances begin to stabilize (NPR).
Fresno Mayor Ashley Swearengin expressed the view of many analysts across the nation. “There is little, if any, good news in our budget situation” (KMPH).
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