EDUCATION NOTEBOOK:
By Lindsey Burke
Arne Duncan will face many questions when he appears on Capitol
Hill for his Senate confirmation hearing. But one of the most
important will be whether the Education Secretary-designate
supports the proposed federal "bailout" for state and local public
education budgets.
Last week, six Democratic governors called on Washington to
provide a $1 trillion federal bailout for state governments facing
declining tax revenues. Their proposal includes $250 billion for
new public education funding for pre-K, K-12, and higher education
funding. This followed similar calls from the National Governors
Association, the U.S. Conference of Mayors, and a growing number of
school districts requesting a federal bailout.
State and local governments are in dire straights. Estimates
show that state budgets alone are facing shortfalls of more than
$137 billion over the next two years. But is a federal bailout
really a responsible solution?
The federal government currently provides approximately 9
percent of K-12 funding, or about $71 billion per year. If only
$100 billion of the $250 billion that the governors are requesting
were used for K-12 education, federal spending for America's
schools would more than double overnight.
An immediate doubling of education spending is unwise in any
fiscal climate but it is especially unwise when the federal budget
deficit is swelling out of control. The Congressional Budget Office
estimates that at $1.2 trillion, the federal deficit will exceed 8
percent of GDP this year, not including the potential $1 trillion
being proposed as part of the stimulus package. State leaders
cannot continue to look to the federal treasury as the only
solution to the nation's problems.
Since a federal bailout isn't the answer, Duncan and Congress
should consider more fiscally responsible ways for the federal
government to help states weather the current fiscal emergency.
South Carolina Governor Mark Sanford offered a different
approach to the open-handed state leaders in congressional
testimony last fall--calling for flexibility and freedom from
federal regulations and mandates to help put states on the road to
fiscal solvency.
While Gov. Sanford's tune may sound a bit out of key to those
vying for federal dollars, his argument hits the right note. "Give
us more flexibility. Give us more in the way of control over the
dollars we already have and less in the way of costs. Give us more
options, not more money with federal strings attached."
This approach makes a lot of sense in terms of good education
policy. Providing states with more control over how they use
federal dollars would allow targeted spending toward the most
high-needs areas. It would also relieve states of bureaucratic
mandates that result in federal dollars being spent on bureaucratic
compliance instead of in the classroom.
In 2007, conservatives in Congress offered a plan to give states
this flexibility. The plan required states to be held accountable
to parents and taxpayers for results by continuing state tests and
public reporting to ensure transparency.
Under normal circumstances, this approach would improve
education by allowing state and local leaders to make more
decisions in the interest of students and schools in their
community. Today, this makes even more sense--it helps governors
and other state leaders allocate scarce resources in a manner they
feel will best improve education.
Duncan should appreciate this approach. He has spoken in favor
of providing states and localities more flexibility, linking
Chicago's success to the ability to be innovative in meeting
federal goals. The secretary-designate should recognize that state
and local leaders would benefit with that flexibility now more than
ever.
As secretary, will Duncan remember his past support for
flexibility? Or will he cave to Democratic governors and others
calling for an irresponsible federal bailout?
That's the $250 billion question.
Lindsey Burke is a research assistant in domestic policy studies
at The Heritage Foundation.