Gov. Haley Barbour announced Tuesday $82 million slated for public K-12 schools would instead be placed in the state”s rainy day fund.
The money was part of $127 million in Federal Medical Assistance Percentage funds saved by the state due to increased federal pay-in on Medicaid.
In 2010 the Mississippi Legislature drafted an alternate budget which would be enacted contingent upon the federal government increasing its pay-in — thus reducing the state”s Medicaid match responsibility — outlining how surplus funds would be re-appropriated. The alternate budget was instrumental in convincing legislators to pass HB 1622, which underfunds the Mississippi Adequate Education Program in 2011. Barbour and legislative leaders reportedly agreed on a vague set of criteria to determine if the alternate budget would be enacted, and Barbour”s release Tuesday stated he and legislators agreed the criteria had not been met. Initial projections showed $187 million in FMAP funds becoming available.
Apparently, the rainy day funds will be saved for education until fiscal year 2012 when revenues are expected to be at their lowest, but the funds are available to the Legislature at its discretion.
“(Barbour”s) position is, and he is correct, that next year is going to be worse than this year. Since we”re getting federal jobs money, let”s take the money they were expecting and give it to them next year,” said Rep. Cecil Brown, D-Jackson, chair of the House Education Committee. “I think the concern is that if you give all the money to school districts now they wouldn”t take actions to make it through the next two years.”
At the same time, Barbour announced his intention to apply for $98 million in federal stimulus money strictly designated for rehiring or retaining K-12 jobs. Dan Turner, Barbour”s press secretary, said Thursday he didn”t believe the governor had applied for the funds but he has until Sept. 9 to submit the application. The money will be drawn from a $26 billion federal stimulus package.
Nancy Loome, executive director of the Mississippi Parents Campaign, a public education advocacy group which keeps parents abreast of education-related legislation, says swapping $82 million in FMAP funds for $98 million in stimulus funds doesn”t necessarily represent a $16 million increase in relief funds this year. In fact, she says Barbour is suggesting districts put the stimulus money in their own rainy day funds.
“(Barbour) released a letter telling superintendents to save those funds for FY 2012. The speculation is that, because he was so clear about his expectation, he will push for lesser appropriations (for K-12 in 2012),” said Loome. “It”s a pretty clear signal that (Barbour is saying) ”You guys better not spend this money.””
Some insiders have speculated that Barbour may attempt to cut the education budget by as much as $98 million, essentially breaking even on K-12 with the aid of the stimulus funds. Turner said Thursday he hadn”t heard anything from the governor regarding a cut to K-12.
Brown said the jobs money should arrive within two weeks of the governor”s application but that many superintendents were likely unaware of what they will receive.
Lowndes County School District Superintendent Mike Halford said Thursday that the only notice he had received concerning the governor”s plans was an e-mail from Loome. Columbus Municipal School District Superintendent Dr. Del Phillips reported he had received a similar e-mail but declined to comment.
Halford said additional funds, whether FMAP or stimulus funds, would be necessary in 2012 to avoid raising taxes.
Jason Browne was previously a reporter for The Dispatch.
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