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Education Financing Update - May 15, 2007

Following the January 30th Funding Summit the Governor proposed a bold plan to increase state funding for education. The Democrats then submitted a plan, followed by one from the Republicans. They are described briefly below - referred to as Education Cost Sharing grants.

Closed door budget negotiations are now underway between the legislature and the governor in the search for common ground. There are no more public hearings, so the only way to influence the outcome of these talks is through direct contact with legislative leaders and the governor. Among the key items being discussed is the Education Cost Sharing (ECS) grant, the largest source of state aid to local public education. At stake is the best shot we've had in years at meaningful reform and real increases in funding.

Three competing ECS proposals have been put forward:

  • The governor's plan, which generally follows the recommendations of her bipartisan Commission on Education Finance, updates at long last the ECS grant formula and phases in funding over 5 years. ECS would increase $228 million in 2007-08, another $154 million in 2008-09. By 2012 the total grant would rise from the current $1.6 billion to $2.7 billion
  • The Democrats' ECS plan, embodied in the Appropriations Committee budget, tinkers with the governor's proposed changes to the formula-most notably setting a lower minimum aid level, which would reduce but by no means eliminate increases to the state's wealthiest towns. It makes no attempt to phase in full funding, however, providing a $204 million increase for 2007-08, flat funding for 2008-09.
  • The Republicans' ECS plan, touted as a compromise, changes the way the formula measures town wealth so that wealthier towns generally receive more and poorer towns less than under the other two proposals. It increases funding by $154 million for 2007-08, by another $204 million for 2008-09.