Despite Improving Economy, Many States Still Face Budget Cuts

As state legislatures conclude their legislative sessions, lawmakers considered funding for public education during state budget negotiations. As reported by the Center on Budget and Policy Priorities, despite an improving national economy, states continue to face shortfalls in their 2005 budgets. In fiscal year 2004, 11 states decreased education funding, forcing many school districts to eliminate staff, extracurricular programs, and other spending to balance their budgets. Although students in Arizona and Virginia will see funding increases for the next academic year, schools in many other states will receive little or no additional funds, and some face cuts to their education funding.

Arizona and Virginia Boost Education Funding

Following a long legislative session, lawmakers in Arizona passed a more that $1 billion increase in public education funding for the state’s K-12 schools and higher education. As reported by the Arizona Republic, the additional funding will support established programs and new initiatives, such as full-day kindergarten classes for about 150 schools with high numbers of at-risk students. Education officials plan to fully implement the all-day kindergarten program by 2010.

Virginia’s legislature also recently approved a $1.5 billion, or 18 percent, increase to public education funding. The spending plan provides financial support needed to address increases in student enrollment, including more teachers, as well as funds for higher education in the state.

Despite Slowly Improving Economy, States Still Face Budget Cuts

Researchers at the Center on Budget and Policy Priorities recognize that many state legislatures are reluctant to increase taxes. Although a recent report by the Rockefeller Institute noted that state personal income tax revenue has increased by 6.4 percent in the first quarter of 2004, many state governments still face fiscal difficulties and will, therefore, provide little additional education funding to struggling school districts.

States passing or proposing cuts to public education spending in 2004-2005 include: California, Georgia, Massachusetts, Michigan, Mississippi, New York, Oklahoma, and Oregon.

According to the Clarion-Ledger, 24 Mississippi school districts will face a shortfall of $161 million. Schools will be required to provide about half of mandated teacher raises and will be forced to cut expenses.

Facing an impending budget deadline, Missouri Governor Bob Holden agreed to sign education funding bills. The governor will withhold approximately $190 million from K-12 education in anticipation of future revenue.

Due to the Kentucky’s inability to pass a state budget, the Governor is proposing a paltry $6 million dollar statewide increase in education spending. According to the Bowling Green Daily News, the small $10 per pupil increase will delay school construction projects and force districts to use reserve funds for teacher raises.

Prepared May 28, 2004