Legislature to Recess without a Budget

It looks like the legislature will recess for a few weeks while the details of the stimulus package filter down from Washington. This means we won't have a budget signed by the Governor until probably May. Thus, contracts for the 09-10 school year will be delayed. But, there doesn't appear to be any major concern with MAEP being funded.

More Budget Concerns in Jackson

Budget estimates continue to cause concerns in Jackson as the legislature works on the budget for next year -- fiscal year 2010 (FY10). The budget estimating committee reported on Friday to the Governor and revised State revenue estimates DOWN by $400 million for FY10.

The legislature will have to find ways to increase revenues (ie, cigarette tax) and/or reduce funding to programs. It looks like education funding will be OK because of the stimulus package and the requirement that some 80% of the "state stablization funds" help fund education at no less than current levels. Yet, as they say, the "devil is in the details" and we've yet to see the details from the federal government. We've seen how the Governor is willing to turn down federal stimulus money if it comes with too many strings -- future unfunded mandates.

So, the legislature is in a tough spot trying to fund all the State program and balance the budget in the existing economic climate.

Stimulus plan will increase federal funds

The American Recovery and Reinvestment ACT (ARRA) will provide additional Title I and IDEA funding for all schools. So far, we have estimates of additional grants for the current FY09 and FY10 years. You can get an a idea of all the amounts at this House.gov site or this Department of Education site. But, we think CMSD will receive around $3M divided between this budget year and next budget year. We think we will have 3 years to obligate the funds. As far as we know right now, the rules and policies for how to spend the funds will follow the same guidelines already in place for Title I and IDEA funds.

Now, the extra funds from this part of the ARRA are different from the funds schools are likely to receive from the "state stabilization funds." These funds will flow through Jackson and our best guess is they will be used to restore full funding to MAEP in the current FY09 year and to fully fund FY10.