Governor’s school budget is a mixed blessing

Despite a proposal from Gov. Chris Gregoire to pump more money into education, Spokane Public Schools is bracing for a possible $10.5 million shortfall next year.

The governor has proposed $2 billion more for public schools over the next two years, for things like expanding all-day kindergarten in poor schools, promoting math and science, boosting teacher pay, shrinking class sizes and increasing special education programs.

“She brought a lot of good ideas to the table. But those things carry with them obligations to spend any new money in a specific way,” said Spokane Public Schools Superintendent Brian Benzel. “Some people call them strings. I’m starting to call them chains.”

Though the governor’s proposal has received support from lawmakers and other state officials, it does not provide the necessary funding for core programs, Benzel said.

“We’re not alone in this. Every school in the state is struggling with the fundamental flaw in the way education is funded,” Benzel said.

School districts and education groups across the state are speaking out against what they call a failed funding system. And last week, a group of education associations, school districts, and parents – called the Network for Excellence in Washington Schools – announced it would sue the state, hoping a King County judge will declare that the state funding model is unconstitutional. The Federal Way School District filed a similar lawsuit last year.

Senate Majority Leader Lisa Brown hinted Thursday, however, that state help with the education funding formula may be on the way.

“I think the Legislature will get moving on that pretty quickly,” Brown said Thursday, during a weekly meeting with reporters. She gave no specifics. “I think we’ll have something to say about it soon,” she said. But asked if that might draw state dollars away from some of the reforms and additional spending recommended by a new Washington Learns task force, Brown said no.

“It’s actually in partnership with Washington Learns,” she said. Lawmakers in the Senate, she said, feel that both things need to be dealt with.

In Spokane, district officials estimate they have spent $14 million in voter-approved levy dollars this year for programs mandated by the state, including special education, bilingual education, transportation, and for six-period days at the high schools. The state only funds five-period days.

Last year, the district staved off cuts by using savings from the fund balance – also known as the “rainy day fund.” But school officials say that’s not an option next year.

“We cannot continue to operate at a deficit forever,” Neil Sullivan, executive director of finance, told the school board last week. According to the district’s budget forecast, Spokane schools will get $9.9 million more in revenue next year, but will spend an extra $13.6 million.

The district expects to pay $10.6 million more in state-required salaries and benefits but will only get $6.8 million from the state to help pay for it. Fuel and energy costs and other non-employee-related costs are expected to rise, and the district will be paying $300,000 to Spokane County this year to hold elections for three school board seats.

The trend of declining enrollment is also expected to continue, with 350 fewer students in Spokane schools next year. Fewer students means fewer state dollars.

Already the district has cut more than $20 million from the budget over the last five years because of declining enrollment and rising costs, Benzel said.

Though a $10.5 million shortfall is small compared with the overall district budget of $285 million, by the time the district has spent money on mandated programs and fixed costs, there’s very little left to cut, Benzel said.

“We have made most of our relatively easy cuts already,” he said. “Now we’re talking about bone.”