Hard choices ahead for K-12 funding
Written by Todd Engdahl on Dec 20th, 2010.
Legislators face tough decisions next session about whether to cover the loss of local tax revenues or force school districts to eat those cuts.
Legislators listen to revenue forecasts on Dec. 20, 2010. Chief legislative economist Natalie Mullis is seen in profile at lower left.
That was the key message for school districts out of revenue forecasts and economic reports given to the Legislative Council, Joint Budget Committee and other legislators today by legislative and executive branch economists.
While they said the national and state economies continue to improve, the December revenue forecasts were little changed from those issued in September.
Lawmakers also received forecasts of 2011-12 school enrollment and local property tax collections, reports that are made only in December.
Changes in local revenues are key to the funding picture for K-12, said Todd Herreid, fiscal director of the Legislative Council staff and a school finance expert.
Those local revenues, which come from property and vehicle taxes, are projected to drop by $143 million for the 2011-12 school year. Traditionally, the state covers losses in local revenue, but the tight state budget situation makes it an open question whether lawmakers will do that for next year.
It’s widely expected that state support of schools will be no better than flat next year. What’s called “total
