Education Funding: What Now?

The State Board of Education did what it—along with all other state agencies—was directed to do by Governor Rell in preparation for the upcoming state budget session. At its Wednesday meeting the Board adopted a budget resolution that included the required 10% reduction options from its current services level budget for 2008-09. The Board made it clear that it believed the reductions, should they occur, would simply pass the education share of the economic crisis on to municipalities. With local ability to again shoulder the additional burden very much in question, education budgets throughout the state will be in great jeopardy unless the cuts at the state level can be avoided or at least minimized.

A little simple math tells the story. I estimate spending in Connecticut’s local public schools for core programs—regular education, special education and transportation—to be around $7.2 billion. This estimate is based on 2006-07 actual figures, the latest published on the SDE website, with increases for 2007-08 and 2008-09 factored in based on the growth rate for these programs over the prior three years. The figure is probably low, but it’s close enough for our purposes. Keep in mind that these core services do not include things like capital construction, debt service and adult education.
 
Spending for these programs has been increasing between $220 and $250 million per year statewide. Let’s use $250 million as the likely increase necessary for 2009-10 to maintain existing services. My guess is that the average annual cost increase from local sources since 2004-05 has been between $125 million and $150 million. It would have been higher but for the significant increase in ECS ($260 million) over the past two years.

Now look what happens if the state cuts ECS aid in accordance with the worst case 10% budget reduction option. Towns would actually receive $191 million less in ECS than they are being paid this year. That means they would have to come up with that amount locally just to keep spending at the exact 2008-09 level. If local budgets in 2009-10 were to be increased to meet the costs necessary to maintain current service levels, an additional $250 million would be needed—all from local sources. Put those two numbers together and towns may be faced with a $441 million dollar increased price tag for education—3 times the figure they have had to meet on average over the past 4 years.

Anybody see a way for that to happen? I’m thinking no. If these cuts happen, there does not seem to be a way for most towns to make the cuts work. They may end up seeking relief from the Minimum Budget Requirement statutes—and if that law gets changed…well, that’s a good topic for my next post. 

Editor's Note: This was originally blogged at http://06106blog.org/ by Robert Brewer from the Connecticut Education Association

About the author:  

Robert Brewer has spent the better part of four decades in public education, including 33 years at the State Department of Education where he worked extensively with all aspects of Connecticut’s public school funding programs. Since his retirement in 2003 he has remained active in school finance as a consultant with CEA, the state, local school districts and other organizations on a variety of school funding issues. Bob is a lifelong resident of East Hartford.

About 06106blog.org:

School finance is complicated business.  Literally and figuratively, school finance is out of reach for most people.  CEA is bringing the topic closer to your home so you can be an effective advocate for improved public school funding. It’s no coincidence that this new blog is named after the State Capitol postal zip where state legislators, their staffs, and thousands of others do work that affects teachers and students across the state.  When you join the conversation at 06106blog, you’ll feel the State Capitol has never been closer to home.


 

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