The Echo

The following email made its way to my inbox and I think it needs to be public.  So, I'm giving it over to the tax payers.

It seems that funds from the Federal Edujobs bill will not flow down to Delaware's school districts this year.  Ann Visalli of the OMB has sent an email to our legislators apprising them of a plan to hold onto the money until next fisal year.  Visalli cites Delaware's balanced budget for 10-11 and notes that much of the education budget was supplanted by earlier stimulus funds.  Remember, it was supplanted -- Gov. Markell recommended a number of cuts to the state education budget with plan to push down to local districts a number of previously state-funded initiatives.  In the year previous, he was successful in eliminating Minner Units in their entirity.  Most districts picked these reading and math specialists with their share of the stimulus funds for one year, but are starting this school year, 2010-11 without those units.  Some districts found ways to incorporate them into the traditional unit count.  Most eliminated the Reading Specialists.  In July DSTP scores were released and we all learned that a vast swath of Delaware's students can't read.  Off the bat, the Edujobs Bill would allow for districts to resurrect these reading specialists.  With this funding, districts could choose to go one step further and add more inteventionists. Or even commit to reducing targeted class sizes for two years (using the same Sept. 2012 carryover Visalli cites for the state's ability carry over all funds) a data-supported, research proven method for raising achievement scores.  It's also the most underfunded method.  Apparently, Delaware is too busy BOLDly leading an education reform of unproven proportions to consider trying methods that are data-driven.

While I agree that we must use this money responsibly, I cannot think of a more beneficial manner than to void our achaic method of unit funding and to target job retention and growth into those areas where our students are most deficit. 

The one things this memo implies to me is that our Gov. is again going to target education for funding cuts in the 2011-12 budget.  I can only hope our legislators are again prepared to send the Gov. a resounding NO.

Here it is folks, you be the judge:



From: Visalli Ann (OMB)

Sent: Friday, August 13, 2010 5:49 PM
To: Visalli Ann (OMB)

Subject: Education Jobs Fund Program

Dear Members of the General Assembly,

As you may be aware, this past Tuesday Congress passed and the President signed a state aid package that included one-time funding for education jobs and an extension of the federal medical assistance percentage (“FMAP”). Under the Ed Jobs/FMAP bill, Delaware will receive $27.6 million that must be used by September 2012 to create or retain education jobs. In addition, the bill extends the enhanced federal match for Medicaid payments. The FMAP extension is estimated to bring in approximately $47.4 million in additional one-time reimbursement this year. While this additional one-time funding is good news for Delaware, we must ensure that we use it in the most responsible and beneficial manner.

Unlike some states, Delaware’s FY11 budget was balanced without relying on these additional federal dollars, since it was unclear at the time whether we would receive these funds or how much. Importantly, the budget passed by the General Assembly just five weeks ago provided full funding for current classroom teachers and also added an additional 111 teachers to keep up with increasing enrollment for the upcoming school year. The budget also restored the pay cut for teachers and other state employees, provided for teacher salary step increases and met our obligations to provide healthcare for those in need. In short, Delaware’s FY11 budget responsibly met our financial challenges, without requiring teacher layoffs and without removing Medicaid assistance from those hardest hit by the recession.

The fact is, Delaware will face significant challenges next year, as we are faced with a loss of more than $100 million in stimulus dollars, which have been dedicated to education and Medicaid. Given that, while some may urge us to spend this money now for new hires and/or new programs in FY 11, I believe that would be a mistake. With the significant reduction in stimulus dollars for next year and the other cost drivers, I believe we should not use these funds for additional spending commitments this year, which would simply increase the drop-off that we will have to address next year. To be clear, we will spend the Ed/Jobs money on education, but the full amount of the Ed Jobs/FMAP funding should be allocated to the FY 2012 budget to help offset the drop off of stimulus dollars, as well as other likely cost drivers. Doing so will reduce the impact of the coming significant challenges, while allowing time for us together to decide how best to allocate and use the funding.

In closing, given the attention this issue has drawn and the importance of maintaining fiscal responsibility, I thought it important to give you an update on this issue and hope you find this information helpful.

Thank you, and please do not hesitate to contact me should you have any questions. – Ann

Ann Shepard Visalli, Director
Delaware Office of Management and Budget
302-739-4204 begin_of_the_skype_highlighting 302-739-4204