Education Funding

State Budget Woes Threaten to Chill Education Initiatives

By Michele McNeil — July 24, 2008 3 min read
  • Save to favorites
  • Print

While advisers for the two major parties’ presumptive presidential nominees are touting education reform ideas—from more virtual schools to expanded teacher recruitment—state legislators are grappling with harsh economic conditions that threaten to stifle such initiatives.

Campaign platforms and budget woes came head to head here this week at the National Conference of State Legislatures’ annual summer meeting, which provided a stage for education advisers to Sens. John McCain and Barack Obama. (See “Candidates’ K-12 Views Take Shape,” this issue.)

Former Arizona state schools chief Lisa Graham Keegan, representing Sen. McCain, and Stanford University education professor Linda Darling-Hammond, representing Sen. Obama, reinforced the differences between the candidates at a July 23 forum that drew a standing-room-only crowd of more than 150.

Ms. Keegan, speaking for Sen. McCain, an Arizona Republican, said student-performance data is the most crucial measure of how well teachers are doing. Ms. Darling-Hammond said that Sen. Obama, an Illinois Democrat, views test scores as just one of many measures.

“He is in favor of new approaches, developed with teachers,” Ms. Darling-Hammond said of Sen. Obama.

Legislators, concerned about the increased demands on states and school systems, asked pointedly during a question-and-answer session whether the candidates would send more federal dollars their way, especially to help fill classrooms with the highly qualified teachers required under the No Child Left Behind Act.

“One of the biggest complaints we’ve heard was that [NCLB] was underfunded,” said Maryland state Sen. Nancy J. King, a Democrat.

And the responses from the two advisers reinforced what’s perhaps one of the key differences between the presidential hopefuls.

While Ms. Darling-Hammond said Sen. Obama wants to spend an additional $18 billion a year for such purposes as prekindergarten and teacher recruitment, Ms. Keegan did not back away from Sen. McCain’s commitment to hold the line on federal spending and not increase education spending.

“Senator McCain is very mindful that the nation is in an economic crisis,” said Ms. Keegan. She pointed out that the federal government has increased spending on discretionary U.S. Department of Education programs nearly 50 percent over levels before the NCLB act became law in 2002.

Gloomy Fiscal Outlook

Less than two hours after the forum, Andrew Reschovsky, an economics professor at the University of Wisconsin-Madison and a visiting fellow at the Cambridge, Mass.-based Lincoln Institute of Land Policy, warned legislators that states shouldn’t look to the federal government for financial help.

“I don’t think anyone thinks there’s going to be massive increases in federal funding for education,” said Mr. Reschovsky, who studies school finance and property-tax systems. “State education budgets are really going to be at risk.”

That was confirmed by a July 23 report by the NCSL showing that state education budgets are being battered in a fiscal year that is proving to be even worse than projected. Eleven states already have cut money for K-12 education, and others are also facing budget troubles.

Cumulative state budget gaps have grown to $40 billion in fiscal 2009, from $13 billion last fiscal year. So far, K-12 funding has been cut in Alabama, Delaware, Florida, Kentucky, Maine, Maryland, Nevada, Pennsylvania, Rhode Island, Tennessee, and Virginia, the report says.

Higher education wasn’t spared, either: A dozen states cut funding to public colleges and universities.

The economic news from the states appears to be getting worse. In November of last year, seven states reported budget gaps; that number had doubled by April of this year and grown to 20 by June.

The causes are numerous, and often vary by state. Severe flooding and tornadoes have devastated Iowa and its budget, while a steep decline in gambling-related revenue is plaguing Nevada. Decline in the manufacturing sector is vexing 22 states, and the housing slump is affecting 17 states.

Many states have already dipped into rainy day-funds or other one-time sources to plug budget holes.

“I would suggest some of the more easy solutions have been taken,” said Corina Eckl, the fiscal-program director at the Denver-based NCSL. “The options become fewer and more difficult.”

Like consumers, she said, states are being squeezed by high energy and food costs. For example, fuel expenses for school buses are becoming a significant problem for states. (“Increasing Fuel Costs Hit Hard,” July 15, 2008)

In Maryland, budget problems mean that any plans to expand state-funded prekindergarten will likely go nowhere, said Sen. King.

“We’ll be lucky to hang on to what we have,” she said.

Related Tags:

A version of this article appeared in the July 30, 2008 edition of Education Week as State Budget Woes Threaten to Chill Education Initiatives

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Recruitment & Retention Webinar
Hiring, Retention, and Fill Rates: A Data-Driven Sub Strategy
Explore what keeps substitutes coming back and hear how one district rebuilt its substitute hiring process and improved its fill rate.
Content provided by Frontline Education
Early Childhood K-12 Essentials Forum Early Childhood Education: Building Essential Skills for Success
Join this free virtual event to examine the biggest challenges in supporting young children, from preschool through elementary school. 
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Absenteeism Webinar
Attendance Isn't an Attendance Problem
Boost attendance by strengthening relationships, belonging, and support with practical strategies from Doug Fisher & Nancy Frey.
Content provided by Corwin

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding Ed. Dept. Risks Letting $180 Million for Research Expire as Deadline Looms
Spending by the agency's research arm has lagged most significantly compared with previous years.
6 min read
Russell Vought, Director of the Office of Management and Budget (OMB) testifies on the OMB budget during a House Appropriations Financial Services and General Government Subcommittee hearing on Capitol Hill in Washington, DC, on June 4, 2025.
Russell Vought, director of the White House Office of Management and Budget, testifies during a House Appropriations subcommittee hearing on Capitol Hill in Washington on June 4, 2025. OMB has been slow to release congressionally appropriated funding to the Institute of Education Sciences, the U.S. Department of Education's research arm. IES now has just weeks to spend $180 million before it expires.
SAUL LOEB / AFP via Getty Images
Education Funding Averting a Shutdown, Congress Punts Federal Spending Decisions to December
Federal funding talks will continue into December as Congress agrees to avoid a shutdown.
2 min read
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections, at the Capitol in Washington, Tuesday, Sept. 1, 2026.
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers at the U.S. Capitol on Sept. 1, 2026, as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections. The continuing resolution carries over the current year's funding levels for education programs into the first two months of the federal fiscal year that starts Oct. 1.
J. Scott Applewhite/AP
Education Funding Education Department Will Keep Sending Most K-12 Funds Through Its Own System
The agency will send formula funds through its own system again despite program shifts to other agencies.
5 min read
A sign from the General Services Administration is posted outside of the Department of Education headquarters in Washington, D.C. on Friday, July 17, 2026.
A sign installed by the General Services Administration is posted outside the Department of Education headquarters in Washington on July 17, 2026. Despite shifting its programs to other agencies, the Education Department will send billions of dollars in formula funds for schools through its own grants portal on Oct. 1, rather than a portal run by the Department of Labor.
Eric Lee for Education Week
Education Funding Video What's in Store for School Funding for 2026-27?
A new education tax credit, federal budget negotiations, and more are in store.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
Eric Lee for Education Week