There has been much talk from lawmakers about the need to spare North Carolina public schools from large budget cuts and protect teachers’ jobs. The General Assembly’s budget provides $7.5 billion for K-12 education, about 93 percent of fiscal 2008-09 actual K-12 expenditures. While much disdain is generally expressed when there is a reduction in state funding levels, what frequently is left out of the discussion are the millions of federal dollars North Carolina public schools will receive as part of the American Recovery and Reinvestment Act of 2009, commonly known as the federal stimulus plan. An additional $380 million in federal stabilization funds will increase actual general fund spending for public education to $7.8 billion. The new budget totals mean proposed spending is only four percent less than actual spending levels for fiscal 2008-09.
$1 billion in Federal Aid. The Department of Public Instruction (DPI) estimates North Carolina public schools will receive over $1 billion in federal stimulus funds in fiscal 2009-10, that’s approximately a 40 percent increase in federal revenue over and above the previous year.
Types of Assistance. Under the federal stimulus plan, the states and schools will receive two types of revenue. First, North Carolina will receive money from the Education Stabilization Fund (ESF). ESF provides states and local education agencies (LEAs) with broad discretion over how to spend the money. Much of these funds are designed to help maintain existing funding levels and to save jobs in education. Second, in addition to ESF monies, schools will also receive millions in federal funds targeted for specific programs.1
GENERAL BUDGET ASSISTANCE
ASSISTANCE DESIGNATED FOR SPECIFIC PROGRAMS
SCHOOL CONSTRUCTION ASSISTANCE
The recent economic downturn has made it necessary for many state agencies to reduce spending, including public education. However, $1 billion in new federal revenue for education has not only helped to protect service levels and jobs, the new funding has also increased overall spending levels – when compared to last year – in certain areas like special education and at-risk programs. Furthermore, the additional funding has allowed North Carolina budget writers to delay difficult education budget decisions for now.
While the new revenue has helped to soften cuts to public education this year, next year lawmakers won’t have the same luxury of pushing off tough decisions about education spending until the following year. Several questions can help guide those decisions: Are our educational programs producing the desired outcomes? Is there duplication within the system? Are resources kept in the classroom or diverted for non-classroom services? Are programs administered efficiently and effectively? These questions will not only help to guide lawmakers, they will also help us to move past the knee jerk refrain, and “don’t cut education spending” we too often hear out of the governor and legislative leaders.
1 For additional information about federal stimulus legislation and North Carolina public schools, access the link: http://www.ncpublicschools.org/fbs/resources/#stimulus