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4/6/2009
School stimulus situation doesn't bode well for taxpayers
School district budgets around the state do not portend good things. We’re seeing exactly what Milwaukee County Exec. Scott Walker and South Carolina Governor Mark Sanborn have been warning about. When fed funds are gone in two years, how will we continue the programs those funds have been used for? In America, we all know too well you don’t just turn programs on, and then turn them off again. Can you hear it in two years? It does not bode well for local taxpayers.
Long heralded by many local school administrators as a needed financial boost, though hardly a cure-all, the dollars will be used to supplement literacy program funding for students from low-income homes.
"It's great news, but it's only for one or two years," Wisconsin Rapids Public Schools Superintendent Bob Crist said. "You can't put a huge program in place and then not be able to substantiate that in two years, so you have to be somewhat cautious on how you spend the funds. Well, hear, hear. Supplement or supplant? The temptation, will be the establishment of new programs, which will, after two years, then need new state and local funds to continue.
[Appleton Area School District Superintendent Lee] Allinger said the key in spending the new Title I money is that it "supplement what we are doing now, not supplant."
[AASD Chief Financial Officer Don] Hietpas said it looks like 50 percent of the special education funding will go for new programming and additional services, another 15 percent can be used for early intervention services and the remaining 35 percent could provide some general fund relief if it meets the federal definition of "maintenance of effort." Sad to say, those numbers would seem to make it very easy to supplement* current program funds, not supplant*. One thing I don’t understand is if this huge amount of extra spending must be included in a school’s revenue limits, without going to referendum. The way schools are talking about this (as extra, ‘free’ money), it certainly seems as if schools have been granted an exemption under the state revenue caps.[*corrected, see comment below.]
Hietpas said the process of how the stimulus funding is being rolled out is becoming clearer but the flow of information coming from the federal government to the states is "fluid." It's starting to come into focus but nothing is final," he said. "A lot of things at the state level are still under discussion." Senator Mike Ellis sounds the warning trumpets as well, cautioning that the temptation to use a one-time source of funding to pay for continuing programs could create structural deficits in the future,
“The lesson from the state budget is clear,” Ellis said. “Using one-time funds to pay for ongoing programs is folly. It does little to address the budget problems of today and it sets up a greater problem for tomorrow.
…. “School boards across Wisconsin are going to receive about $365 million in federal stimulus funds in the weeks ahead. The temptation will be to use those dollars to supplement any number of ongoing needs and desires. The challenge will be to use those dollars wisely and to keep in mind that the increased federal funds are temporary. He continues, with wise suggestions that best be heeded by school boards everywhere.
“Don’t use these funds to enhance or create ongoing programs that will need continued funding after the federal funds go away. To the extent that they can, school boards should use these one-time resources to build up rainy-day funds and to pay for other one-time needs,” Ellis said.
“Otherwise, if they follow the state’s lead, we could have 426 local structural deficits all across Wisconsin.” And lots of gnashing of teeth by taxpayers, administrators, school boards, school employees and parents alike. I can hear it already.
Jo Egelhoff, FoxPolitics.net
COMMENTS
Lets see, the way to stop an alcoholic from drinking is to give him more liquor !
That's the logic, or rather the complete lack there of, used in this scenario !
We have school systems in need of funds. We all know that. Some districts are on the edge of total failure to administer their funds and promises to the communities.
Some are wasteful, and some are not.
We have Big brother who wants to ensure dependence on him (BHO) and to do that, just like offering a free drink at the bar, the schools are a running to grab a stool, and get "Their fair share".
You see, once you have partaken of the "free" money, like an alcoholic, you become addicted.
Once addicted, you will do anything to ensure a future supply of your addiction, whether it is money or alcohol.
It will not be long, before Barry , oops, I mean big brother, has total control of the "objective"
the objective at risk here folks, is the Future of your children s education.
It will fall from local control to that of Big Brother!.
" Nonsense " you say !
Well then why are there strings attached ?
Why is it for new programs only !
( and this is stimulus ? )
You are looking at the beginning of a new Federal School System, mark my words, and it won't stop there.
GM already knows the sting of support !
Rich Carlstedt (Mon Apr 06 09:42:34 2009)
Thanks, Jo, for combing out the details of this nasty deal. Rick's comment is right on the mark, too. The expansion of government programs through the "stimulus" can only lead to more dependency. Just wait 'til the welfare program kicks in here - another government "drug."
Soapbox Jill (Mon Apr 06 17:15:18 2009)
I believe you have the terms reversed; "supplanting" would replace in whole the local/state funds while "supplementing" would add to the local/state funds.
Other than that quibble, a very good look at the pratfalls of "stimulus".
steveegg (Mon Apr 06 18:06:58 2009)
Yes Steve, you're right. I'll make the correction in the piece. Preference is for federal money to supplant local money, although that's not a great deal either - one-time money that must be provided once again by the property taxpayer (or the state) when the feds pick up and leave. But worse is supplementing the spending with new programs, that no one will want to stop. Sen. Ellis has it right - use the fed bucks to build up rainy-day funds and to pay for one-time needs.
Jo (Mon Apr 6 20:57:45 2009)
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