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Thursday, January 29, 2009

Bill could be shot in the arm to schools

Virginia's public schools could get enough from the stimulus measure to dwarf planned state cuts.

Blue Ridge Caucus

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From The Roanoke Times

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Virginia's public elementary and secondary schools could stand to receive as much as $1.7 billion over the next two years under the Obama administration's stimulus proposal, according to early predictions.

That windfall would plow millions into construction projects, technology upgrades and programs for low-income and special education students. It would also dwarf Gov. Tim Kaine's proposed state cuts to education of almost $400 million.

But school districts have been reluctant to bank on any aid from the federal government, preferring to wait until the dust settles and lawmakers in Washington agree on a final package. Still, administrators have been closely following the package's progress in the hopes that it will lighten the budget cuts that the downward-spiraling economy is forcing them to consider.

Giving education a shot in the arm has been a major tenet of President Obama's plan. About $145 billion of the total package is designated for schools, school construction and colleges. How that money will be spent is still mostly up in the air.

"There's all sorts of room," said Michael Griffith, senior finance analyst at the Education Commission of the States, which has been tracking the proposal. "Some of this stuff is structured, on some of this stuff the states have some leeway, and on some they have complete leeway."

Over the past few days, local administrators have been trying to wrap their minds around the sheer size of the package.

"It's an unprecedented amount if it passes through," said Curt Baker, Roanoke's deputy superintendent for operations. "If it trickles down to the school systems, that would be an outstanding thing."

The proposal would send roughly $14.3 million to Roanoke schools over two years, to be spent on programs for low-income and special-education students and construction projects, according to estimates from the Education and Labor Committee in the U.S. House of Representatives. Other area districts, which have fewer low-income students and students with disabilities, would get less. Roanoke County, for instance, would get $5.2 million over two years. Bedford County would see $4.4 million and Montgomery County stands to get $5.1 million.

Because federal rules prohibit school districts from supplanting local money with federal money, school districts could find themselves aggressively expanding some programs while simultaneously struggling to meet payroll and other necessary expenses.

The stimulus funds "will certainly help with the disadvantaged population and the special education population, but they're not going to help us balance the overall operating budget," said Penny Hodge, Roanoke County's assistant superintendent of finance.

The proposed package also includes $79 billion that states can use to offset cuts in state funding. About 61 percent of that money is intended for education. In Virginia, that represents $966 million that Kaine could use for education.

Details of the proposal are still vague, and federal officials could impose new restrictions on spending the stimulus money or leave it up to the discretion of the states.

"The effect that it is likely to have on our existing budget is highly uncertain," Baker said. "Almost always those federal dollars come with rules on how those federal dollars can be spent."

Should money become available to school districts, it would run out within two years, which would make administrators reluctant to use it to hire new staff.

For that reason, local school officials have been wary of pinning their hopes on the stimulus package as they slash their budgets for next year.

"We're not counting on a penny, and everything we get we're considering it as a gift," Roanoke County School Board Chairman Drew Barrineau said.

Officials in Washington have said the final plan will likely not be ironed out until sometime next month. That means people shouldn't expect the stimulus plan to offset painful state cuts, Kaine spokesman Gordon Hickey said.

Kaine was scheduled to meet with key lawmakers Wednesday afternoon to discuss the federal money's impact on state spending.

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