Rendell’s budget plan would cut education spending
HARRISBURG – Major cutbacks in education spending proposed by the governor Tuesday could mean higher property taxes and more expensive college tuition in Pennsylvania, educators fear. In unveiling his state budget proposal for next fiscal year, Gov. Ed Rendell proposed maintaining current funding levels for school districts and community colleges and cutting spending for charter schools and colleges.
But Rendell added that he would be proposing hundreds of millions of dollars in new funding later this month.
“This necessary first step will not be my final word,” Rendell said of his $21 billion spending plan for the next fiscal year, which begins July 1.
School and college officials said there better be lots more money coming their way, otherwise they may need to raise taxes, cut programs or charge more tuition.
“If that [current budget proposal] holds, obviously it’s going to create a lot of problems for school districts and – at this time of increased costs for health insurance, retirement benefits, not to mention if there’s any increase in student population – it’s going to put districts in a position where they have to make very difficult decisions on raising taxes, cutting existing educational programs or using funds they may have held in reserve for capital projects,” said Tim Allwein, assistant executive director for governmental and member relations at the Pennsylvania School Board Association.
“Certainly, I think there will be discussions of a tuition increase and whether one is warranted if in fact the numbers are held constant,” said James Linksz, who is president of both Bucks County Community College and the Pennsylvania Commission for Community Colleges.
The state budget proposal, which Republican leaders in the General Assembly enthusiastically endorsed and said they hoped to pass as is as early as next week, represents a 1.4 increase over the current budget. Total education spending, however, would decrease by about one percent.
State aid to school districts, the budget’s largest line item, would remain at $4.1 billion next year. The funds cover about 38 percent of basic education costs in the state’s 501 school districts. Special education funding would also remain unchanged, at $874.3 million. Public school transportation, however, would increase by about 3.6 percent to $455 million.
Last year, in contrast, basic education aid was increased by 3.5 percent and special education went up by 1.5 percent.
The state’s 14 community colleges, which collectively received about 8 percent increase in funding last year, would receive no new funds under Rendell’s proposal. The spending plan also maintains $347.9 million for higher education grants to students.
School districts and community colleges are the lucky ones, relatively speaking. Many other education-related expenses are slated to be cut, under Rendell’s proposal. State aid to the 14 state universities would be reduced by about 8 percent. For the second straight year, aid to state-related universities would be cut, this time by about five percent. Private colleges and universities would also see significant cuts in state grants. And charter schools would receive 8 percent less in total funding.
With the economy in recession and the state government facing a revenue shortfall this year, administration officials said they had to tighten their belts.
“Today, in the face of a budget crisis that is far worse than anyone anticipated, I present a budget that includes a long list of tough decisions … that will surely bring hardship to citizens in every corner of the Commonwealth,” Rendell said during a 45-minute speech.
But there is “a ray of hope” for educators and students, Allwein said.
Rendell announced that on March 25 he will propose historic new levels of education funding. The Democrat said he will propose legalizing slot machines at horse racetracks and taxing the revenues from them to fund his new educational initiatives, which include giving more state aid to local school districts so that they can lower their property taxes.