As states encounter major revenue shortfalls (due to the sagging economy) and impose freezes or cuts in aid to education, many schools and districts are facing tough decisions about how to allocate their shrinking budgets. California governor Gray Davis has proposed an across-the-board cut in all state programs, which could trigger teacher layoffs or force schools to shut down for fifteen days. In Oregon, many districts have already announced plans to shorten the academic year, a cost-cutting measure that has not been imposed since the Great Depression. In a number of districts, these financial woes are compounded by recently discovered errors in district budgets caused by financial mismanagement or simple bookkeeping mistakes. The midyear budget cuts come at a time when schools face a variety of new education expenses, some linked to the federal No Child Left Behind Act, others arising from voter initiatives and court decisions. They also come at a time when states, districts, and schools are under mounting pressure to produce results. Some say these simultaneous challenges may force state education agencies and large school districts to become more efficient; if so, that would be a welcome silver lining to the cloudy year ahead.
"States brace for tough new year," by Alan Richard and Joetta Sack, Education Week, January 8, 2003
"Budget errors leave schools feeling pinch," by Jeff Archer, Education Week, January 8, 2003
"Schools ending year early to cut costs," by Sam Dillon, The New York Times, January 12, 2003