In Massachusetts, there are 153 municipalities that will be facing an education funding crisis in FY11 (which begins on July 1, 2010) because the Federal Economic Stimulus plan has not jumped started the economy to replenish the "one-time" influx of cash. Don't get me wrong, its not all the federal government's fault. Officials at both the state and local level have to accept responsibility for using this money to fund on-going operating expenses (mainly to pay for raises to existing staff). And every employee and labor union who refused to engage in a dialogue about wage freezes because this money was available shares in the blame as well.
The willingness at the state and local level to punt the financial issues until next year was a conscious decision by most. It would almost be better if people didn't understand the implications of using this money ($451 million state-wide, according to Stimulus Money For Education Running Out - Team 5 Investigates News Story - WCVB Boston) to fund the contractual raises due to existing staff. The reality, however, is that everyone took the money and agreed to "hope for the best".
Well, the best didn't happen. The federal stimulus money did not generate a large boom to the US economy. The tax increases implemented by the Massachusetts state legislature actually generated LESS revenue. And few towns found (or even tried) a compromise with employees to alter the contractually obligated raises that were negotiated in a better economic climate. So, where does that leave the cities and towns who were relying on the Federal and State governments to be able to replace the stimulus funds with revenue from a revived economy?
Well, it leaves them in a position of facing massive budget shortfalls. In most cases, the shortfalls from the stimulus money is only half the problem. With a new year comes new contractual increases to salaries. Yet, there is no money at the local level to cover those increases either due to an overall limit on the annual property tax (2.5%). And in other instances a contract whose original term has ended needs to be re-negotiated. Here is an article describing how one town's negotiations are going (I hope...and believe...this is a rare example): http://www.wickedlocal.com/newton/news/education/x1945275537/Newton-Teachers-Association-threatens-work-to-rule-after-stalemate-in-collective-bargaining-negotiations
Given the circumstances that have put us in this situation, with all parties being partially responsible, I think its time that the adults put the children first and compromise. Government funding to replace stimulus money and a 100% wage freeze for all employees would balance most of this shortfall. It would also mitigate further burden to our taxpayers, mitigate penalty to teachers by not being asked to take a pay cut, and most importantly...saving jobs so our kids keep the same level of service at our schools.
The state government should fulfill its obligation to funding the Massachusetts educational system (and there is a law in MA that calculates that amount). At a minimum, it should fund to the level that replaces the amount of stimulus money that was used to satisfy is FY10 obligation. This may mean larger reforms to other areas of government (pension reform, eliminating duplication of services, etc.), but if the state is going to mandate a level of education funding by municipalities, it should keep up its end of the bargain.
Replacing the stimulus funds would allow for municipalities to support a level of education spending equal to what it is spending this year. But, as I said, that's only part of the problem. It would take an agreement by all employees (union and non-union) to accept a 100% wage freeze for one year to alleviate the added burden further expense growth would create.
We can't afford to push these structural difficiencies in our budgets off anymore. It is up to those who participated in the creation of this situation to put our children's education first...and compromise!
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