Sunday, January 31, 2010

BBC News - US lessons on education spending

BBC News - US lessons on education spending


British education may be down in the dumps over government spending prospects, but in the US the picture is rather different.
This week President Barack Obama announced a big cash boost for schools and for university students.
In his state of the union address, President Obama announced a $4bn (£2.5bn) increase in federal spending on elementary and secondary schools.
That is a rise of over six per cent, one of the biggest rises for years.
He also announced an even bigger cash increase in student aid to provide more federal grants for poor students and to ease the impact of student debt repayment.
In future, graduates in the US will be "forgiven" their outstanding federal loan debt after 20 years or, if they enter public service, after 10 years.
'Belt-tightening'
In the US, central government accounts for only a relatively small proportion of the total amount spent on schools and colleges.
For schools there, the main budget provider is the state, and many US states are now feeling the financial squeeze as tax revenues fall.
Nevertheless, President Obama's emphasis on investing in education at a time of economic difficulty contrasts with the UK, where both the government and the Conservatives are preparing for belt-tightening.
President Obama's message was that, even while the US requires a three-year freeze on general public spending to tackle the deficit, it must "invest in the skills and education of our people".