Posts Tagged ‘Billion’

Education would get $55 billion boost from Obama’s jobs plan

Monday, September 12th, 2011

(Photo: White House video capture)

Within president Obama’s 7 billion jobs bill he announced Thursday in an address to a joint session of Congress, some billion would go directly to K-12 educators and renovations to nearly 35,000 schools.

The speech has won plaudits from labor groups and most of the Democratic base for its extension of unemployment insurance benefits and direct jobs training and hiring subsidies for employers, while the package of household and business tax cuts has piqued the Republican Party’s interest as well.

Among the direct jobs spending the president called for, billion would be spent on retaining 280,000 teachers as a counter-cyclical measure to wait out the sluggish economy. After a several-month period of 100,000-plus job gains in the labor market, hiring has slowed, with the most recent monthly jobs report from the Bureau of Labor Statistics noting job growth was completely flat, with net zero new hires.

Going into the 2011-2012 school year, nearly 85 percent of all school districts face budget cuts, according to labor groups; the depletion of 2009 stimulus money that relieved state legislatures from cutting even deeper into education spending meant more layoffs and school infrastructure neglect. The National Education Association, the largest teachers’ union in the country, have said the first round of stimulus funds helped 90 percent of school districts avoid spending cuts. Though with many state legislatures passing expansive tax cuts, school spending was on the cutting block.

Many states have dramatically thinned out spending streams to education. From Center on Budget and Policy Priorities:

21 of the 24 states analyzed are providing less funding per student to local school districts in the new school year than they provided last year, and 17 of the 24 are providing less than they did before the recession, after adjusting for inflation. In 10 of these 24 states, per student funding is down by more than 10 percent from pre-recession levels. The three states with the deepest cuts — South Carolina, Arizona, and California — each have reduced per student funding to K-12 schools by more than 20 percent.

Though state contributions to school district spending varies by state, nationally, 47 percent of public education spending comes from state coffers. Since the start of the Great Recession, 229,000 teachers were laid off. And with the housing market at a standstill, local communities are strapped as their chief revenue stream runs dry.

Still, a few states upped their primary and secondary education spending: Alaska, Iowa, New Hampshire, Maryland, Massachussetts and Pennsylvania sent more dollars to K-12 education since the start of the recession.

Because public education allotments follow ‘formula’ spending as indicated by federal law — in which dollars are sent over based on district financial need — a disproportionate amount would flow to poorer neighborhoods, meaning middle-class zones would feel the squeeze. New Jersey, for example, is under court order to withhold any more spending cuts affecting school districts in low-income areas.

The remaining billion would go to refurbishing school structures while funding new science labs, internet-ready classrooms, and modernizing rural school houses while bolstering public school facilities’ green bonefides across the country.

A statement from the American Federation of Teachers, the second largest teachers’ union, read in part:

President Obama also made it clear that the path to our future is through education. We have seen a loss of 300,000 education jobs since 2008 as well as long-delayed school repairs and modernization projects. We can’t equip our kids for the knowledge economy if we continue to slash education budgets. This robust plan will put people to work teaching and modernizing schools, and it will save money in energy costs that can be reinvested in education.

For a spending breakdown of the president’s proposed jobs bill, click here [PDF].

The Colorado Independent

TX House Budget Proposal Slashes $9.8 Billion From Education

Thursday, January 20th, 2011

More about the proposed budget:

TEXAS HOUSE RELEASES PROPOSED BUDGET WITH NO NEW TAXES AND WITHOUT TAPPING THE RAINY DAY FUND.

In education the proposed budget slashes public school funding and cuts at least 60,000 college students from financial aid.

The proposed budget drafted by the Legislative Budget Board will slash an additional .8 billion from public school funding, while the student population is projected to grow by at least 80,000 students each year. Further, an estimated 109,000 children will be cut from Pre-Kindergarten early start programs and 83,000 children will be cut from the Early Childhood School Ready program. Under current funding levels, Texas ranks 44th nationally in education funding per pupil, is last in the percentage of adults obtaining a high school diploma.

In the Medicaid program, the proposed budget slashes overall spending by nearly 30 percent, cut services for adults that federal law doesn’t require states to offer and cut 10 percent, in addition to last spring’s 1 percent cut, from reimbursements to doctors, dentists, hospitals and nursing homes. The proposed budget also cut Nursing Facility payments by .57 billion dollars, which will have a tremendous impact on residents in Texas’ nursing homes.

In public safety and corrections programs, the proposed budget closes a correctional facility in Sugar Land, three Texas Youth Commission correctional facility and 2,000 private prison beds, a move that could close at least two additional correctional facilities and cut 1,562 prison jobs. Probation programs would see funding cut by 20 percent, parole supervision would be cut by almost 9 percent, and the construction and public safety and correctional facility maintenance funding will be cut by 83 percent, along with 90 jobs. And, the Victims Services Division would be eliminated.


State Senator Wendy Davis
(D-10 Fort Worth)

State Senator Wendy Davis (D-10 Fort Worth) said late Tuesday night, after the budget draft was delivered, that the budget draft by the Legislative Budget Board released earlier was wrong for Texas. Full Article at Capitol Annex:

Senator Wendy Davis said the first draft of Texas’ 2012-13 budget is wrong for Texas.

The Legislative Budget Board’s budget proposal released to House members last night will cut .1 billion from current spending, even before accounting for population growth.

The budget, drafted for House leadership, will slash education funding by .8 billion, while the student population is projected to grow by 80,000 students each year.

Several primary and secondary education programs are recommended for elimination, including: pre-k early start grants; Texas reading, math and science initiatives; criminal history background reviews; and science labs. Higher education is slated to lose .7 billion in funding including significant cuts to the Texas Equalization Grants and Texas Grants programs –state-funded financial aid.

Other budget recommendations include reducing prison populations through early release of prisoners, cutting Medicaid reimbursements to doctors, hospitals and nursing home by 10 percent, and eliminating family practice and rural public health physician rotations.

”With such a dramatic budget shortfall, cuts must be made,” Davis said. “But education funding should be our highest priority. We need to ensure that Texans are adequately educated so that we do not lose competitive ground at a critical time in our nation’s economic recovery.”

Under current funding levels, Texas is already near the bottom in education funding per pupil (Texas ranks 44th nationally), is last nationally in the percentage of adults with a high school diploma, and is among the bottom in high school completion rates across the country.

“While other states are competing for dollars to race to the top in education funding, Texas, under this budget recommendation, will be sprinting to the bottom,” Davis said.

Davis said that any proposed budget that does not address the structural deficit in education funding, created in 2005 when lawmakers turned to an under-performing business franchise tax, will push the current biennial shortfall in public education funding of about billion into future budgets indefinitely.

”We have to have an honest and transparent conversation about the education funding shortfall, which is cheating our schoolchildren while simultaneously overburdening small and medium sized businesses in Texas,” Davis said.

Davis said that as cuts are proposed to strip critical services to educate our children and to address some of the state’s most vulnerable, lawmakers should do what they can to lessen that burden in other ways.

Protecting Texans’ pocketbooks through lowering homeowners insurance rates, lowering residential electricity rates and by establishing fair rules to prevent the devastating impacts of predatory lending should also be considered, Davis said.

Regardless of the bleak budget picture, Davis called on fellow lawmakers to work to positively change course for future Texas families and to address other issues that will have a very real impact on their household finances and their quality of life.

Democratic Blog of Collin County – News

Gov. Perry Is Hiding A $21 Billion Texes Budget Deficit

Monday, November 2nd, 2009

“Saddle bags” by Nick Anderson – Houston Chronicle

Dallas Morning News:

New assessments, obtained by The Dallas Morning News after a recent huddle of senior legislative staff members, show that even if lawmakers decide to spend all billion in the state’s rainy day fund, they still would need to come up with almost billion more to close the gap - through some combination of spending cuts, accounting tricks and new taxes or fees.

The figures, prepared by staff at the Legislative Budget Board and then tweaked by House leadership, show the situation has deteriorated since spring.

In May, Pitts, the House’s chief budget writer, drew derision from some GOP leaders when he said the shortfall could be between billion and billion. Perry said someone had “reached up in the air and grabbed” the figure.

The latest figures, though, show the gap as high as .6 billion.

Revenue is not rebounding quickly from the economic downturn, as Comptroller Susan Combs predicted it would. Population is expected to keep growing rapidly, which swells demand for education and social services, already high because of the recession.

You can watch a video clip here where Rick Perry say that “I’ve got a lot of confidence in this comptroller.” [Texas Comptroller of Public Accounts Republican Susan Combs] He goes on to say, “I don’t necessarily think it’s a particularly good use of the comptrollers time to do a budget estimate every time someone pokes their head up out of a hole and says ‘let’s do a budget estimate.” It’s quite obvious Rick Perry does not want his controller to release a budget report that shows a billion budget deficit any time before the election, as the truth about Texas’ fiscal health is clearly detrimental to Governor Perry’s re-election bid.

Politifact verifies claims from Democratic opponent Bill White that our state’s debt has doubled under Rick Perry. When he assumed office in December 2000, Texas held .7 billion in debt. Adjusting for inflation, that’s today’s equivalent of .6 billion. As of August 2009, we held .08 billion in debt. Rick Perry has more than doubled our state’s debt, even after you adjust for inflation.

Perry also claims he’s cut state spending as well, but it’s actually increased 45%.

He’s claimed to have vetoed billion worth of spending, when, in truth, .5 billion of that never was passed into law anyway and would not have been spent, regardless of his ‘veto’.

Despite all of the above proof that our Governor has failed miserably as a steward of our state’s fiscal matters, he’s running ads claiming

that, “the economic success Texas is experiencing because of the leadership and pro-growth policies put into place by Governor Rick Perry. The keys to success? Don’t spend all the money. Keep taxes low. Keep regulations fair and predictable. Tort reform to prevent frivolous and junk lawsuits. Fund an accountable education system. Then get out of the way and let entrepreneurs and the private sector do what the private sector does best– create jobs. Since 2005, Texas has created far more private-sector jobs than all over states combined.”

We Texans here in Collin County know Perry’s political ad claims are half-truths, slanted estimates, and flat out lies.

No wonder Gov Perry is too chicken to debate Bill White. He’s tanked our state’s fiscal health with one hand and written a book about what a great fiscal conservative he is with the other. In one breath he claims there is no budget crisis in Texas and then he claims Texas’ has a financial crisis caused by the Obama administration.

Houstonians, who re-elected Bill White as mayor with 91% and then later, 86% of the vote, were proud to call him our mayor. It’s time for Collin County to elect a Texas Governor in which we can again be proud. Visit Bill White for Texas and read about his accomplishments with the city of Houston that includes job growth and balancing budgets.

Democratic Blog of Collin County – News