FY2010 Public Education Appropriations Summary
Prepared by the Office of the Legislative Fiscal Analyst | More »
FY2010 Public Education Budget Finalized
As the end of the 2010 General Legislative Session neared, the Governor and majority party legislative leaders worked to trim a proposed $21 million cut to public education to about a $9 million reduction from last year’s budget. In the end, however, there was no new funding to educate an estimated 11,000 new students expected next year. The net result is a cut of about 3 percent, far less than reductions faced by many other departments and agencies.
The public education cuts will come largely from funds for new school buildings and a 50 percent cut to teacher-directed supply money, with additional reductions to be determined by local school boards. At the last minute, lawmakers found money to help pay for new school library books. A last-minute attempt to insert charter school funding changes and eliminate association leave pay (see below) failed.
The WPU will remain at $2,577 despite no funding for the additional 11,000 students. School districts must absorb those costs in other areas.
A major change in the education budget proposal is a shift from one-time to ongoing money. During the downturn in the economy, one-time rainy day and federal stimulus money was used to fill budget shortfalls. In the new FY2011 budget, lawmakers and the governor agreed to replace most of the one-time money with ongoing funds.
“The change from one-time to ongoing funding is a huge win for public education,” said UEA Government Relations Director Kory Holdaway. “Without this change we would have faced a major funding cliff in future years.”2010 Utah Education Budget
Cutting Education Runs Counter to Public Opinion
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Gov. Gary Herbert’s recommended fiscal year 2011 state budget includes measures to protect public education from reductions faced by other state agencies, but school districts would still see funding cuts if it took effect.
The recommended budget, announced Dec. 11, avoids raising taxes and keeps public education roughly equal to this year, but it also fails to provide funding for new student enrollment of about 12,000 students next school year. The result would be a decrease in overall education funding, a drop in the weighted pupil unit (WPU), and likely an increase in the state’s class sizes, already the largest in the nation.
According to a Dan Jones & Associates survey commissioned by UEA and conducted in August 2009, the scenario is not one supported by most Utahns. Asked which was more important, increasing the investment in public schools or cutting school budgets to live with lower revenue, 73 percent said increasing public school investments was most important while just 20 percent said cutting budgets.
When asked how to help public schools deal with falling revenues, survey respondents’ top six choices all involved some form of tax increase, including:
The public school funding solutions least preferred by survey respondents were increase class sizes, reduce teacher salaries and reduce or eliminate sports, arts or music programs in schools.
“We understand the serious financial situation facing our state and are encouraged to see Gov. Herbert has recommended holding public education to less severe cuts than other departments,” said UEA President Kim Campbell. “But we have a real concern if the state is asking schools to provide the same services to 12,000 more students with no additional funding. Following reductions to last year’s public education budget, the governor’s proposed cuts will have serious impacts in the classroom, and that’s clearly not what the public wants.”
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The Salt Lake Chamber of Commerce echoes the public’s concerns about education funding. In a >recent editorial, Mark Bouchard, Senior Managing Director at CB Richard Ellis and Chair of the Salt Lake Chamber Education Task Force wrote: “A highly educated workforce is the most critical long-term strategy for a vibrant economy and healthy society…Balancing the budget is the immediate concern but the long-term requires an investment in our human capital. A well-trained workforce is the single most important element to maintaining and enhancing Utah’s reputation as a great place to do business. Further reductions in public and higher education put our workforce at risk. Education funding must be protected as we balance the state budget.”
The governor’s recommendations for public education are very close to what the State Board of Education requested. Under the governor’s recommendations, $72 million of the $100 million set aside two years ago for schools would go toward funding this year’s budget, avoiding a 3 percent cut asked of other departments and higher education this year. The remainder of the $100 million would be used in next year’s budget.
Gov. Herbert’s proposed budget would take $166 million of the $419 million state rainy day money, tap $31 million of the roughly $100 million education reserve fund, increase its bond debt and resort to some accounting maneuvering to deal with a projected $510 million shortfall—all to keep a budget that is relatively flat compared to the current year.
The projected deficit is less than previous estimates, in part because state departments were asked to make reductions in the current fiscal year. Revenue projections also show some future growth, though still well below what is needed to deal with growing demand for services.