Virginia education leaders await Economic Stimulus money; worry about details

While the infusion of cash over the next two years from the federal government for shrinking education budgets is appealing to school leaders, the lack of details is causing anxiety.

“There is still a great amount of uncertainty about how the money may be spent and what requirements will be attached,“ said Donald J. Ford, president of the Virginia Association of Secondary School Principals.

President Barack Obama recently signed into law the $787 billion American Recovery and Reinvestment Act, which includes $141.4 billion for public and higher education. About $40 billion of that will go to offset budget cuts in schools.

But the U.S. Department of Education has not yet prepared rules to distribute the money, said Gordon Hickey, spokesman for Gov. Timothy M. Kaine.

Virginia will receive about $4.6 billion from the stimulus package, including $176.9 million for education technology, Head Start and grants for disadvantaged students.

Where those billions for Virginia will go raises more questions than answers.

“We have estimates of federal and state appropriations and have developed a tentative budget around those figures to address a range of possibilities,“ said Winston O. Odom, superintendent of Hopewell schools.

“However, the picture remains too unclear to make definitive decisions.“

Yvonne Brandon, superintendent for Richmond schools, said the stimulus money will provide an opportunity to modernize some buildings and build up technology infrastructure. Her school system faces a $16 million budget shortfall.

“It’s hard for us to determine what to do with the money because we don’t have guidance yet,“ she said.

Francis R. Moore, superintendent of Prince George County schools, said he understands that the money is meant to offset the cuts to education proposed by Kaine.

“Will that cover it all or just part?“ Moore asked. “We are projected to be cut $2.6 million [in 2009-10] based upon the governor’s amendments. What about fiscal year 2011? Is this just a temporary fix? We are just playing a waiting game right now.“

One thing is certain: The influx of cash for education comes at a time when many school systems are hurting.

“In many school divisions, class sizes will not have to increase, fewer staff members will lose positions and program quality will be maintained,“ Ford said.

David Myers, assistant superintendent of finance for Henrico County schools, said officials are waiting to see what the General Assembly will do with the money.

Preliminary figures show that Henrico schools would get $15 million to $20 million, he said.

Unlike several of the school divisions, Henrico schools have not seen a reduction in their budget.

“But we have lots of needs in Henrico, maintenance needs, capital needs and instructional needs that these dollars are going to help with,“ Myers said.

The federal money will not cure the budget problems, said Charles Maranzano Jr., superintendent of Dinwiddie County schools.

Maranzano’s school division faces a $2.6 million budget shortfall.

“It may forestall the revenue shortfall that we have,“ he said.

Marcus J. Newsome, superintendent for Chesterfield County schools, told employees in a written statement Thursday that based on preliminary figures, the school system would receive $15 million to $20 million. The school division faces a $52 million budget deficit.

“While this news makes our budget picture for [fiscal year 2010] somewhat better, it does not solve the long-term budget issues we face,“ he said.

Because the infusion of cash will be a one-time deal, school officials have to be careful not to fall into a trap, said Stewart D. Roberson, school superintendent in Hanover County. His school system faces a $15 million budget gap.

“The fact that there is no guarantee that this substantial infusion of funds will exist beyond a two-year period requires all school superintendents and school boards to adopt the most conservative positions in how they are invested,“ he said.