Education Law

Budget Shifting ... Carefully

Here's a legal topic that is happening now that might not be getting a lot of attention - budget shifting. Particularly, schools shifting money from earmarked funds toward other priorities. There was a good example out of Ohio today where some IDEA funds were shifted toward general priorities. Ohio cleared a provision that blocked local special education funds from supporting other expenses and, thus, schools all over the state have shifted money originally earmarked for special education students toward other needs. 

This example from Ohio gets at a larger issue that's happening right now in schools were budgets are tight and administrators are getting "more creative" in moving money around. This is especially true because of the bifurcated school funding system whereby revenue enters the school in several different funding streams, each of which has restrictions on its spending. As those funds are protected differently by state legislatures, administrators are forced to move money around to compensate. For instance here in Kentucky the Legislature and Governor have done a good job protecting the SEEK fund (the general education fund), but have not protected transportation, professional development, extended-day services, etc. The kids still have to get to school, so administrators are forced to shift these funds. 

But the rub is that there are frequently pretty specific rules about how such money can be moved around and almost assuredly lots of administrators right now are violating a lot of these rules. Not only that, but as Ohio showed, entire states may also be taking actions that get them sued, if nothing else. 

So, keep an eye on it. School budgets are a black hole even for well practiced administrators, so it's hard for the general public to know what is happening. But, as information leaks out look for more lawsuits to ensue. 

Full post as published by Edjurist on January 25, 2010 (boomark / email).