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Allowable Growth – The legislature set allowable growth rate at 4 percent for the 2009-2010 school year.  This was the same rate that was set for the current budget year.  When the 1.5 percent  across-the-board reductions were made, state aid was cut for the current budget year by 33.4 million. year.

Due to the economic downturn, the Governor is recommending a decrease in the amount that the state aid will be funded for the 2009-2010 school year.  The Governor is not decreasing the percentage of allowable growth for the 2009-2010 school year.  He is recommending a straight dollar amount appropriation which amounts to approximately a 2 percent increase.  The decrease in aid to schools for the next budget year is projected to underfund state aid by approximately $89.5 million. 

Reducing the dollar amount paid to school districts rather than reducing the percentage allows school districts to retain their spending authority.  It is a local decision on how school districts wish to handle the reduction.  They can use their cash reserves or reduce their budgets.  If they use their cash reserves, then property taxes would be needed in the future to replenish the cash reserve fund.

Allowable Growth for FY 2011 – The Governor has not recommended a percentage for allowable growth for the 2010-2011 school year (FY 2011).  The legislature has 30 days to set allowable growth for FY 2011.  The 30-day period ends February 27, 2009.

Teacher Quality and Professional Development – The Governor’s budget proposal for FY 2010 holds teacher quality harmless.  It is not subject to the 6.5 percent cut but is held at the same funding level as FY ’09 before the 1.5 percent across the board cut.

Teacher Quality, Professional Development, Educational Excellence and Class Size:  In 2008, the  Legislature approved a bill that will place teacher, compensation, professional development, early intervention (class size), and educational excellence Phase II funding into the school aid formula on a per pupil basis.  During the 2009 legislative session, legislators will have to begin work on setting the first allowable growth rate for the categorical funds.  The first fiscal year for allowable growth rate categorical funding is FY 2011.  The Governor did not recommend a rate at this time.

Department of Education

Governor recommends a general fund appropriation of $84.4 million for FY 10, a 6.5 percent reduction from adjusted FY 09.

Board of Regents

Governor recommends a general fund appropriation of  $639.7 million for FY 10, a 6.5 percent reduction from adjusted FY 09, or a  reduction of $44.5 million.

Community Colleges

Governor recommends a general fund appropriation of  $169,977,369 for FY 10, a 6.5 percent reduction from adjusted FY 09, or a reduction of $11.9 million.

College Aid Commission

Governor recommends $64.3 million for FY 10, a 6.5 percent cut from the adjusted FY 09 appropriation, or a reduction of $4.5 million.

Department of the Blind

Governor recommends $2.3 million for FY 10,  a 6.5 percent cut from the revised FY 09 appropriation.

Staff Contact: Jenifer Parsons

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