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NPT Capitol: EPISD’s lost $100m from the stimulus

Yesterday, Senate Democrats sent a letter to Arne Duncan, US Secretary of Education, claiming among other things, that the El Paso Independent School District had been swindled out of approximately $99.4m by Texas budget writers.

How did they come to a figure like that? Here’s the short story. The Federal Stimulus Package sends a whole bunch of hard currency to states in order to shore up their education budgets. The Fed’s logic is that with all the economic problems states are encountering, the money means they wont have to cut education funding from its level in boom years. If states have any of this money left over after shoring up their budgets, then the leftover money (more-or-less) goes straight to the local ISDs.

But Texas is in a different state to most other states.

First it has approaching $9bn in its RDF savings account (the rainy day fund) and second, it has not (yet) been battered by the global economic crisis. Texas has a few holes in its budget, but nothing the RDF couldn’t take care of. However, budget writers have so far left the RDF untouched. Instead, they have ta taken the education stimulus money and used it to free up general revenue, and then used that general revenue to plug a variety of other holes in the budget created by things like declining sales tax revenues.

Senate Democrats argue that if Texas had plugged its budget holes with the RDF instead of using the stimulus money, then the ISDs would have gotten a windfall – $100m to EPISD and a whopping $347m to Houston ISD.

During the Senate’s debate of the budget earlier this month, Senate Finance Committee Chairman Steve Ogden, said that things in Texas might get worse before they get better (economically speaking) and so it was better to leave the RDF for an even rainier day.

Both sides have a point. In one sense, using the Fed’s credit card instead of the states savings account is a shrewd move giving Texas a ‘Plan B’ if things really get bad. But Texas schools are hardly the nation’s best funded. By plugging the budgets gaps with stimulus money instead of the RDF or tax hikes, ISDs wont get a potentially much needed windfall.

–Ben Wright

Check back with NPT after the weekend for the long story…

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Written by newspapertreeelpaso

April 17, 2009 at 12:15 pm

Posted in Uncategorized

3 Responses

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  1. First, the budget has not yet been approved. EPISD had hoped for $30M for facility renovations that was deleted.

    Ken G

    April 17, 2009 at 6:35 pm

  2. viry nice article, thank your share

    yoogya

    April 18, 2009 at 11:45 pm

  3. In a recent statement about future plans for public education in America, Secretary of Education Arne Duncan advocated an eleven month school year and a six day school week. It appears the Secretary has learned very little as a result of nearly a decade of “teaching to the test” and the consequent dramatic dumbing down of America’s public schools.

    We need students who can think and problem solve, who are creative, joyful and compassionate learners more than able to fulfill their future roles as active citizens in a democracy. Drowning them in irrelevant “drill and kill” classrooms is no way to achieve these goals. However, if we want to produce mindless robots who care for nothing better than endless entertainment, relentless consumption, and being told what to think 24/7 by our corporate media, then, we are doing a heckuva job.

    Secretary Duncan also seems inordinately concerned about our students’ ability to “compete” with Chinese and Indian students. Does he mean their ability to win the jobs that are fleeing overseas in search of slave wages? Is that what he has in store for our good little test takers: A race to the bottom of the economic ladder? I hope not.

    John Russell

    April 22, 2009 at 10:45 am


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