Our Share of the School Pie
Thursday, February 19th, 2009Vermont schools and school districts will get $160,129,000 from the 2009 stimulus bill, according to figures released by the House Education and Labor Committee.
Under the law signed Tuesday by President Barack Obama , the U.S. Department of Education will distribute more than $90 billion in education funds. Education seems to have been one area where the final bill was closer to the original House proposal than the less generous Senate version. Some of the money will go directly to schools and school districts. Some will go to state governments, but the states will have to use this money for public elementary and secondary education.
Vermont’s share is roughly one eighth of one percent of the total. But the state’s share of the population isn’t much more than that. Perhaps no more than that including Puerto Rico and other U.S. territories, which also get some of the education money in the new law.
By one standard, though, Vermont does very well. According to an analysis of the House Committee figures by the New America Foundation, Vermont will receive $2,688 for every poor student in the state. Only Wyoming gets more money ($2,715) per poor student.
One reason Vermont ranks high by this measure is that it has relatively few poor students. Only five states have a smaller proportion of public school pupils living in poverty, according to the Census Bureau’s 2007 American Community Survey. One of them is neighboring New Hampshire, which has the lowest percentage of students living in poverty.
Among the entire population, adults as well as school-children, only New Hampshire and New Jersey have lower poverty rates than Vermont. Jennifer Cohen of the New America Foundation said her organization used that American Community Survey in its analysis because those are the figures the Federal Government uses to apportion “Title I” school funds, which are designed to increase spending in poor areas.
So Vermont is not poor. This does not mean it is rich. Jill Remick, the spokesperson for the Vermont Department of Education, said about 30 percent of the school-children in the state qualify for the free or reduced lunch program, meaning their family income is 180 percent of the poverty line or less. That’s higher than many states, and all the New England states except Maine.
Vermont can thank some of its policies for its relatively large allotment per poor pupil. The complex federal formula by which these funds are distributed is not based entirely on percentage of poor students. A state is rewarded if it spends more of its total state budget on education, and also if spending is relatively equitable around the state. Vermont schools may be expensive, and its efforts to equalize education spending controversial, but in this case both policies seem to have brought a little extra money into the state.
The federal money is expected to be dispatched quickly, but Remick said it will not be soon enough to affect Vermont’s local school budgets that will be voted on over the next few weeks. In fact, state education officials only got the House Committee estimates yesterday, and it will be some time before they can figure out how the money will be distributed among the Vermont’s 302 school districts
“The school budgets (for next year) have already been prepared and printed,” she said. The new federal money will start affecting the Fiscal year 2011 school budgets that will be prepared and voted on next winter.
But the money will begin to flow sooner than that, and if nothing else it could have a psychological impact on voters. More money from the federal government means less reliance on local property taxes, soon if not now. It is the prospect of rising property taxes that most commonly leads to school budget defeats.
Vermont will get $26,364,000 in additional Title I money, plus $7,125,000 for physical improvements to schools in poor areas. Under two separate formulas, the state will get $27,366,000 in extra funds for special education. In this case, the state does not seem to be getting extra funds because of its generous Special Education policies, which in many cases provide each special needs child with his or her own teaching aide.
The policy is very expensive, and last month Gov. Jim Douglas singled it out as one that might have to be changed to save money. The new funding should at least provide state education officials some breathing room to examine Special Education.
As with all states, Vermont’s biggest chunk, $96,050,000, is for the “State Fiscal Stabilization Fund.” This money goes to state government “to help states maintain 2008 levels of education funding,” in the words of the New America Foundation analysis.





