Let's put the kids first...and compromise!

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?