[Bridging_the_digital_divide] Schools must use $2 billion or lose it

[Jason Barkeloo]

Schools must use $2 billion or lose it

  Tuesday, June 29, 2004 Posted: 11:02 AM EDT (1502 GMT)


WASHINGTON (AP) -- States are getting a reminder from the federal 
government: Quickly make plans to spend more than $2 billion in 
education money, or be ready to lose it.

The Education Department has found that all the states, the District of 
Columbia and eight territories have high cash balances left from 2002, 
including money meant for poor children, disabled students and 
limited-English learners.

That money must be obligated -- not spent, but at least legally 
earmarked toward a specific expense -- by September 30, which is 27 
months after it was released to states.

States then have two final years to spend the money. Ultimately, school 
money not committed or spent returns to the federal treasury, as 
happened with $155 million last year.

The department's move comes as an election-year fight grows over 
whether states and schools have enough money to do what's demanded of 
them under new federal law. House Republicans announced Monday that 
states have $16.8 billion in unspent school money dating from the 
former Clinton administration, a figure that the Education Department 
confirmed but state school officials called misleading without context 
about how school financing works.

GOP leaders are expanding an argument made this year by the department, 
the White House and congressional Republicans, that schools are flush 
with federal money. It's meant to counter the claim that President 
Bush, who championed a law demanding greater improvement in all 
schools, has not come close to keeping his promise to pay for changes 
the law demands.

"We've literally flooded the system with cash, and it's time to start 
focusing on improving student achievement instead," said Rep. John 
Boehner, R-Ohio, chairman of the House Education and the Workforce 
Committee.

The Education Department has issued letters to chief state school 
officers, reminding them of what appeared to be substantial cash 
balances with just three months before the September deadline.

Meeting obligations

More than $2.1 billion is unspent from 2002, or about 8 percent of the 
money allocated for five broad areas, including special education and 
adult education. The department's letters to states identified only 
those cash balances that seemed particularly high.

Todd Jones, a department budget official, acknowledged Monday that the 
agency does not know how much of that money already has been obligated. 
He said it makes sense that some cash is not yet committed, such as 
money for summer reading expenses that have yet to occur.

Still, Jones said, the department issued its reminder to ensure that 
states don't miss their chances to use the money. It's part of a 
broader effort this year to help states account for all the federal 
money available and to draw it down more quickly.

"The states are telling us that they're not seeing this as a red flag 
at all," Jordan Cross, lobbyist for the Council of Chief State School 
Officers, said after leaders there reviewed the numbers with budget and 
top education executives from at least 10 states Monday. "They expect, 
by September, that almost all of that money will be obligated."

Patty Sullivan, the council's deputy executive director, added: "To the 
department's credit, they gave us a heads-up on this. I don't think 
this is a `gotcha' activity. I think they really are trying to help."

Still, Sullivan said, the implication that states "have a closet full 
of money," is misleading. Her group plans to publish a document that 
explains school financing for the public, knowing the issue will come 
up again.

http://www.cnn.com/2004/EDUCATION/06/29/school.money.ap/index.html


---

Jason Barkeloo
President
TouchSmart Publishing
http://www.touchsmart.net
tele 513.225.8765


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