City schools are much more dependent on state sales- and income-tax revenues than suburban districts, which get most of their funds from relatively stable property taxes. That’s why urban districts get hit first and hardest when the economy goes south. Since most cities are already struggling with underfunding and declining enrollments–as well as a disproportionate share of low-income and learning-disabled students–it doesn’t take much to nudge them into crisis mode. And that means hiring freezes, layoffs, school closings and burgeoning class sizes. One recent survey found that 36 states–including California, Florida and Indiana–were struggling with recession-reduced revenues this winter, and many were cutting education funds as one way to make ends meet.
The timing is especially frustrating to urban educators who have waited a long time to see their fortunes rise, and have been encouraged by small victories in recent years. “No one ever claimed that an economic downturn was well timed, but we’re in a particularly important and fragile state right now,” says Casserly. “We’re seeing upticks in academic performance and we are focusing our work much more closely on raising academic achievement, and we need resources to keep those trend lines going upward. Any erosion in our resources will make the job much more difficult.”
The alarms began sounding early this fall when a number of states began telling city districts that the rosy projections they had used to draw up their budgets last spring were not materializing. In Minnesota, voters had agreed to pay an extra $22 million to upgrade technology and reduce class size in St. Paul’s schools, and the superintendent was putting together an aggressive reform program. District officials believed they were on the way up. “We were hoping to make great progress with that money,” says Lois Rockney, the district’s financial director. But now the $22 million raised for “extras” will go for basic necessities. A hiring freeze is now in place in St. Paul, and more cuts are coming. “The accountability that’s expected from us is higher than we’ve ever seen before,” says Rockney, “but there’s also much more uncertainty about our resources than ever before.”
Schools across New York state have been among the hardest hit by the economic downturn. New York City revenues are down $1 billion since September 11, which has meant $115 million less for city schools to date, despite rising costs for school security, relocation of students and building repairs. Already, staff reductions and program cuts have been ordered, and the prospects for better funding next year are described as “bleak.” Beyond the city’s borders, the signs are equally ominous. Upstate in Buffalo, a shortfall of $28 million in expected state revenues will mean the layoff of 557 school workers–433 of them teachers–by the end of January. Only half the shortfall can be met through staff cuts; the rest will have to come from school closings, bigger classes and fewer repairs.
There is some good news. President George W. Bush’s recently passed education-reform package puts a spotlight on failing inner-city schools. Under the legislation, schools that improve will be rewarded with extra funds and schools that don’t will face takeovers by the state. And last year’s education crisis–teacher shortages–is easing because of the current economic woes. Many experienced teachers who had been on the brink of retirement are putting off that decision because they’re worried about the value of their 401(k)s. Like everyone else, they’re hoping the numbers will soon start looking up.
