Posted 9:36 pm Friday, February 19, 2010
Texas Plays Cards Right In Dealing With Stimulus
A recent Associated Press headline makes it abundantly clear why Texas was right to turn down federal "Race to the Top" funding last month.
The story was titled, "Schools face big budget holes as stimulus runs out."
"The nation's public schools are falling under severe financial stress as states slash education spending and drain federal stimulus money that staved off deep classroom cuts and widespread job losses," the AP reported. "School districts have already suffered big budget cuts since the recession began two years ago, but experts say the cash crunch will get a lot worse as states run out of stimulus dollars."
The result, the AP added, could be "more teacher layoffs, larger class sizes, smaller paychecks, fewer electives and extracurricular activities, and decimated summer school programs."
States that relied heavily upon stimulus dollars -- and less on planning ahead and making economies -- will be hit the hardest.
"The situation is particularly ugly in California, where school districts are preparing for mass layoffs and swelling class sizes as the state grapples with another massive budget shortfall," AP reported.
That's one reason Texas was wise to turn down further federal "incentive" money -- a federal bailout, with no fiscal reform, only puts off the inevitable.
Gov. Rick Perry had other reasons, as well.
"Texas won't compete for up to $700 million in federal stimulus money for education because the program 'smacks of a federal takeover of our public schools,' Perry said," the AP reported last month. "The funding is from the U.S. Department of Education's 'Race to the Top' program, a $5 billion competitive fund that will award grants to states to improve education quality and results. The program, created in the economic stimulus law, is part of Democratic President Barack Obama's efforts to overhaul the nation's schools."
"Texas won't compete for up to $700 million in federal stimulus money for education because the program 'smacks of a federal takeover of our public schools,' Perry said," the AP reported last month. "The funding is from the U.S. Department of Education's 'Race to the Top' program, a $5 billion competitive fund that will award grants to states to improve education quality and results. The program, created in the economic stimulus law, is part of Democratic President Barack Obama's efforts to overhaul the nation's schools."
As Brooke Dollens Terry of the Texas Public Policy Foundation points out, the "Race to the Top" money would have been very costly, indeed.
"In order for a state to apply for its share of President Obama's Race to the Top stimulus funds, it will have to explain how it will use those federal dollars on a list of suggested education reforms," she explains.
For one thing, education is a state matter -- not a federal responsibility.
"Texas lawmakers control funding and school requirements, and the State Board makes decisions about curriculum," she says. "All of these are elected positions directly accountable to the voters at least once every four years."
And the federal funds would have to be "leveraged" by the state -- meaning we would have to spend money to get money. It could be as much as $3 billion (in revamping curriculums to meet federal mandates) to have access to a maximum of $750 million.
But the stark reality is stimulus money isn't limitless -- it will dry up.
Other states are already facing that reality. By prolonging the pain, Washington isn't doing those states any favors. Texas was right to turn down the funding. That's the lesson here.
