Learning at ARPS
March 2, 2006

Dear Everyone Learning at ARPS:

This is a perfect example of the trickle down effect of federal cuts to local tax increases. The needs of students with disabilities should be met, and, by law, must be met. Therefore, if federal funds are reduced, local funds must be allocated.

"President Bush proposed decreasing the federal percentage of funding to just 17 percent instead of the promised 40 percent. In just two short years the congressional commitment would go from 18.6 percent to just 17 percent; leaving a $14.45 billion federal shortfall. Once again, the burden for paying for special education will continue to be shifted to local districts forcing school districts to raise local taxes. Encourage your representatives to co-sponsor H.R. 3415, a bill to provide mandatory full funding of IDEA by 2011 and encourage your senators to co-sponsor S. 2185, the Senate companion bill." - AASA Leader's Edge

The following (lengthy) update is from the American Association of School Administrators about the Federal Budget. For those following the budget process, you may find this informative. Please write to Senators Kerry and Kennedy and Representative Olver to support S.2185 and H.R. 3415, respectively.

Thanks,

Jere Hochman
Superintendent


The Leader's Edge
February 2006

View from the Hill

Presidents Proposed Education Budget Cuts
On February 6, 2006, President Bush released his proposed budget for FY 2007 (2007-2008 school year). While AASA sensed that education would be cut and we braced ourselves with low expectations, the budget was worse than we feared. Funding for the Department of Education was cut by $2.1 billion, or 3.8 percent. This is the largest proposed cut in the history of the department. Secondly, of those cuts, funding for programs that serve the needs of K-12 education was hit especially hard.

President Bush proposed to reduce the federal commitment to fully funding special education in his FY 2007 budget. While we support the presidents continued increases for IDEA, AASA questions whether the proposed increase goes far enough in ensuring the federal government meets its commitment. In 1975, Congress promised to provide 40 percent of the National Average per Pupil Expenditure for every child in special education. For the first time in over a decade, President Bush proposed decreasing the federal percentage of funding to just 17 percent instead of the promised 40 percent. In just two short years the congressional commitment would go from 18.6 percent to just 17 percent; leaving a $14.45 billion federal shortfall. Once again, the burden for paying for special education will continue to be shifted to local districts forcing school districts to raise local taxes.

Congress must fulfill its commitment to schools and students across the country. AASA strongly supports Congress reaching its 40 percent commitment through mandatory full funding of special education. IDEA consistently falls victim to the constant fiscal pressures on the federal budget. Though every member of Congress supports full funding of IDEA, at the end of the year, it becomes lost among hundreds of other priorities. In addition, Congress provided its largest increases to IDEA when it was under pressure to provide mandatory full funding. Given the current budget proposal to cut the federal commitment, school administrators should lead the push, once again, for Congress to fulfill their commitment to students with disabilities. Encourage your representatives to co-sponsor H.R. 3415, a bill to provide mandatory full funding of IDEA by 2011 and encourage your senators to co-sponsor S. 2185, the Senate companion bill. Through your strong support for IDEA funding, we can work to counteract any proposed cuts.

In addition to the bad news on IDEA funding, the president proposed level funding Title I grants to school districts. Not only does this mean no additional funding for Title I grants, but level funding will exacerbate the formula issues that are causing the majority of school districts across the country to lose Title I funding. The day the budget was released, Education Secretary Margaret Spellings made it clear that since most of the major new requirements of NCLB have been implemented, school districts would not require additional funding. This is an alarming point of view concerning the federal outlook on education funding. Administrators are fully aware of the ongoing costs of the federal requirements as well as rising student enrollment continuing to increase the fiscal pressures on school districts.

Also, the president responded to the mounting pressures of the federal deficit by eliminating 141 programs. Of those 141 programs, 42 were in the Department of Education. This represents a $3.5 billion cut in education funding. Of greatest concern are the proposed eliminations of major formula grants that school districts count on yearly, such as Perkins Career and Technical Education, State Technology Block Grant and Safe and Drug Free Schools. Elimination of the funding for these important programs will translate into major cuts for almost every school district.

The federal budget situation is serious this year. If administrators do not weigh in with their concerns to Congress they will see even greater cuts in their federal education programs. These cuts will ultimately manifest themselves in terms of elimination of services to students and the removal of staff positions. The only way to reverse this decline in the federal commitment to funding education is to make an impact with your members of Congress. 2006 is an election year and there is no better time to ensure your views are heard.

Both the House and the Senate will consider their budget priorities in March. Unless we can convince members to increase the overall amount of funding dedicated to education, it will be impossible to avoid funding cuts. Make sure you are heard; timing is of the essence.


Talking Points on FY 2007 Budget Request by President Bush

Prepared February 7, 2006

President Bush is proposing the largest funding cut in the Department of Educations history. In his FY 2007 (20072008 school year) budget, Bush proposes cutting education funding by $2.1 billion or 3.8 percent. As the president proposes to cut education funding, local school districts will be forced to cover the federal shortfall. This amounts to a local tax increase as school districts struggle to meet the funding cuts amid increasing fiscal pressures.

President Bushs budget proposal would reduce the federal commitment to fully fund the Individuals with Disabilities in Education Act.

1. Title I grants to school districts would not see an increase.

2. The FY 2007 budget proposal eliminates funding for successful K-12 programs that impact every school district.

3. Medicaid Reimbursement for school districts is eliminated.

4. The Rural Education Achievement Program is level funded at FY 2006 levels.

5. The Bush budget disproportionately eliminates K-12 education programs.

6. The FY 2007 budget continues the decline in the federal investment in education.

AASAs reactions to President Bushs FY 2007 budget

Special Education state grants would increase by only $100 million under the presidents budget proposal reducing the federal commitment to fully fund the Individuals with Disabilities in Education Act.
While we support the presidents continued increases for IDEA, we continue to question whether the proposed increase goes far enough in ensuring the federal government meets its commitment. In 1975, Congress promised to provide 40 percent of the National Average per Pupil Expenditure for every child in special education. For the first time in over a decade, President Bush proposed decreasing the federal percentage of funding to just 17 percent instead of the promised 40 percent. In just two short years the Congressional commitment would go from 18.6 percent to just 17 percent; leaving a $14.45 billion federal shortfall. Once again, the burden for paying for special education will continue to be shifted to local districts forcing school districts to raise local taxes. Congress must fulfill its commitment to schools and students across the country. AASA strongly supports Congress reaching the 40 percent level through mandatory funding of special education. By funding IDEA on the mandatory side of the budget, school districts would be ensured the full federal commitment in just seven years.

FY 06 Funding Level


Presidents Budget Request for FY 07
FY 07 Amount Promised in IDEA Reauthorization


Title I grants to school districts would not see an increase.
AASA is disappointed with President Bushs budget proposal for Title I. For the first time since the creation of No Child Left Behind, the president fails to increase funding for districts under the Title I formula. Instead, President Bush proposes the creation of a new $200 million program to increase state capacity for school improvement efforts. The FY 2007 budget makes it clear that states will be allowed to keep up to 100 percent of this new funding at the state level. This means there is no guarantee for new funding for school districts under Title I and it will only exacerbate the shift in the current funding formula causing most school districts to lose money. Twenty-nine states are projected to lose Title I funding under this scenario and seven states will not receive an increase. Local school districts expect additional funding in compensation for increasing federal requirements under NCLB. Once again, the administration is not fulfilling their side of the agreement.


FY 2007 Budget Proposal eliminates funding for successful K-12 programs that impact every school district.
President Bush once again targets the major funding streams that school districts count on year after year. Specifically, the president proposes the elimination of Education Technology State Grants (Title II, Part D of NLCB) and Safe and Drug Free Schools (Title IV, Part A, of NCLB) citing the ineffectiveness of both programs which have gone a long way in providing expansion of technology in instruction and school counseling, respectively, across the country. In addition, the president once again proposes the elimination of the Perkins Career and Technical Program, including all funding for the state grants, tech-prep and national programs in favor of funding a new high school reform initiative. The elimination of Perkins fails to take into account the success of Perkins programs around the country and the role that career and technical education plays in reaching students through applied learning. In light of the presidents commitment to maintaining Americas lead in the global economy, AASA is surprised by the decision to eliminate programs already designed to meet these needs. Congress should continue its commitment to the current agenda before creating new programs.

Medicaid reimbursement for school districts is eliminated.
Under the FY 2007 budget, President Bush recommends the elimination of the Medicaid reimbursement for school-based administration or transportation costs established under IDEA. Specifically, the Department of Health and Human Services and the Center for Medicare and Medicaid Services budget proposal states these are costs not traditionally paid for through Medicaid. This is a major reversal in federal policy and court precedent utilized since 1988. Elimination of this reimbursement opportunity once again increases the burden on local school districts to cover costs while denying school districts funding that is entitled to them under law. School districts should not be treated differently than health clinics and should be guaranteed reimbursement for Medicaid eligible services for Medicaid eligible children.

The Rural Education Achievement Program is level funded at FY 06 levels.
For the third year in a row, President Bush has included funding for REAP in his FY 2007 budget and recognized the importance of this critical rural education funding stream. This funding will help rural districts to overcome the additional costs caused by their geographic isolation, smaller number of students and increased poverty. In addition, REAP provides necessary resources to aid rural school districts in meeting the requirements of NCLB. Already, funding from this program has helped districts increase reading achievement through the hiring of reading specialists, update their technology through purchasing of computers for students and hire highly qualified teachers. As other federal education programs are cut or eliminated, funding for REAP becomes even more important to help fill the funding shortfall in many rural districts.

The Bush budget disproportionately eliminates K-12 education programs.
President Bush eliminates 42 programs totaling $3.5 billion from the Department of Education. The 42 programs are a disproportionate share of the 154 proposed program eliminations in the entire federal budget. Yet, funding for education only represents 2.5 percent of the federal budget. View the programs proposed for elimination.

The FY 2007 budget continues the decline in the federal investment in education.
Since 2000, Congress has increased funding for education by 40 percent. But in that same time period, the federal requirements for school districts have also increased exponentially. Since the enactment of No Child Left Behind in 2002, the federal government:

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