Duncan: States could lose out on stimulus cash (applies to TX)

[sonias]

http://www.statesman.com/news/content/gen/ap/US_Stimulus_Schools.html">AAS 3/18/09
Duncan: States could lose out on stimulus cash
By LIBBY QUAID
AP Education Writer

WASHINGTON — The Obama administration warned states Thursday it may withhold millions of dollars if they use stimulus money to plug budget holes instead of boosting aid for schools.

Education Secretary Arne Duncan made the threat in a letter to Pennsylvania Gov. Ed Rendell, but his words could have implications for Texas, Arizona and other states.
(snip)

In the letter, Duncan wrote he is displeased at a plan by Pennsylvania's Republican-led Senate to reduce the share of the state budget for education while leaving its rainy-day surplus untouched. To do so "is a disservice to our children," Duncan wrote.

(snip)
In Texas, Arizona and many other states, state lawmakers are still arguing over school spending cuts and the use of stimulus dollars.

Well Perry what are you going to do? Step #1 - make it political I bet and say Obama is the one short changing the children. :eyes:

Lets see Perry add that back to the special session.

Sonia

[sonias]

1. Did lawmakers hurt state's shot at federal money for education?

AAS 6/19/09

Did lawmakers hurt state's shot at federal money for education?
Texas followed guidelines and is in the clear, legislator says.


A $5 billion pot of federal grant money to reward states for education innovation might be out of reach for Texas because of how the state has used its share of the federal stimulus money so far.

During the recently completed legislative session, state lawmakers plugged a hole in the 2010-11 budget by using $12 billion in federal stimulus money. That allowed lawmakers to leave untouched the state's estimated $9.1 billion rainy day fund — saving the money has been a source of pride for state leaders.

(snip)
"Every effort was made to stay in compliance with the terms of the stimulus bill," said Hochberg, who led the House Appropriations subcommittee on education.

Hochberg thinks we're OK. Congressman Lloyd Doggett thinks we created an "artificial shortfall" to justify covering normal expenses. We skirted the spirit but we didn't cut spending.

Sonia