[Vision2020] Seven States Slash School Spending

[Kenneth Marcy]

Seven States Slash School Spending

http://247wallst.com/special-report/2013/09/24/seven-states-slashing-school-spending/ 


Since the recession began, K-12 education spending has declined 
dramatically in some states. In Alabama and Oklahoma, per-pupil spending 
fell by more than 20%.

While the majority of state school systems have cut spending between 
fiscal year 2008 and the upcoming fiscal year 2014, the cuts have been 
much more severe in some places than in others. According to the latest 
school spending data compiled by the Center on Budget and Policy 
Priorities (CBPP), seven states have cut per-pupil spending by more than 
15% in that time.

"The decline in state revenues was unlike anything that we've seen in 
decades," explained Michael Leachman, CBPP director of state fiscal 
policy. "The budget problems that resulted from this past recession were 
really historic." That, he continued, resulted in states being faced 
with a difficult choice for their school systems --- to raise revenue 
through taxes during an economic downturn or cut school funding. The 
majority of states opted at least in part for education cuts.

Of the seven states with at least a 15% decline in school funding 
between fiscal 2008 and fiscal 2014, five actually further limited their 
revenue by cutting income taxes.

Schools rely on three main sources for their funds: local/municipal, 
state and federal. Nationally, states account for roughly 44% of total 
education funding.

The decline in funding came at a particularly bad time for many school 
systems, explained Leachman. While the federal government initially 
provided emergency funds to schools through the Recovery and 
Reinvestment Act of 2009, those funds are now gone, and Washington has 
initiated cuts of its own. At the same time, local funding took a hit 
when property values declined during the recession. The decline in both 
federal and local funding, explained Leachman, is "why the state aid 
cuts really bite. They're putting schools between a rock and a hard place."

Many of the states that are cutting funding are arguably the ones that 
can least afford it in the long term. Based on Education Week's most 
recent assessment of schools, five of the seven states with the largest 
declines in education funding scored a D+ or worse in their K-12 
achievement, as measured by standardized test scores.

These states also have among the lowest levels of educational 
attainment. Five of the seven states had below-average rates of adults 
with high school diplomas. Only one was above the national rate of 
adults with college degrees.

"It is very troubling that so many states have cut their school spending 
by so much," noted Leachman. "We're in a 21st-century economy where we 
know education is increasingly important. For the jobs of the future, 
more and more are going to require a higher level of education. You're 
putting yourself at a disadvantage if you're not producing a workforce 
that has that level of education," he added.

Based on the CBPP report, "Most States Funding Schools Less Than Before 
the Recession," 24/7 Wall St. reviewed the seven states with at least 
15% declines in state education grant money between fiscal year 2008 and 
fiscal year 2014. In addition to CBPP data on school budgets, we 
reviewed 2012 educational attainment and income data from the U.S. 
Census Bureau's American Community Survey. We also looked at educational 
achievement and National Association of Education Progress (NAEP) test 
scores, as compiled by Education Week in its 2013 "Quality Counts" report.

http://247wallst.com/special-report/2013/09/24/seven-states-slashing-school-spending/2/ 


*5. Idaho*
 > Pct. chg. per pupil spending (FY'08-FY'14): -16%
 > FY '14 per-pupil spending: $4,906 (24th most)
 > Decline in per-pupil spending (FY'08-FY'14): $930 (4th biggest decline)
 > Adults with bachelor's degree: 25.5% (14th lowest)

Idaho's fiscal 2014 budget calls for spending nearly $1,000 less per 
student, compared to what they state spent before the recession. More 
than half of the spending cut occurred between 2011 and 2012, when 
spending per pupil dropped by $574. In 2012, just over a quarter of 
Idaho residents 25 and older had a bachelor's degree, compared to nearly 
30% in the nation as a whole. The Superintendent of Public Instruction, 
Tom Luna, would prefer Idaho be rated by its test scores, which were 
better than many of the states with such severe cuts in spending. In 
2011, fourth and eighth graders performed close to or above the national 
average in mathematics and reading, based on NAEP test scores.


Ken

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