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The Fiscal Cliff and Education according to the NSBA

Political pundits are already warning President Barack Obama and members of Congress not to spend too much time basking in their Nov. 6 victories. Beginning next week, Congress and the White House will start the tough negotiations to deal with the process of sequestration, which is the cancellation of budgetary resources.

The Budget Control Act of 2011 will impose across-the-board cuts of approximately 8.2 percent to education and other domestic programs in FY2013 unless Congress intervenes by Jan. 2, 2013. Most school districts would not see any impact until the 2013-14 school year, but those consequences will be severe. Districts that receive Impact Aid funds would see immediate cuts.

More than 100 school boards already have passed resolutions urging members of Congress to stop sequestration, which is also being called the fiscal cliff. The National School Boards Association (NSBA) is asking school boards to pass a resolution, write letters to local newspapers and take actions to publicize schools’ plights. NSBA also wants your stories about how these cuts could impact your students and schools. Learn more on the NSBA’s “Stop Sequestration” webpage for  a list of actions for local school board members and more information about the threats.

NSBA’s Advocacy department also has compiled these facts about sequestration:

  • For every $1 million of federal aid districts receive, they would lose $82,000; and, while districts can vary widely, on average, for every 5,000 students enrolled, districts would lose about $300,000.
  • The impact of an 8.2 percent cut to programs such as Title I grants for disadvantaged students would mean a cut of more than $1 billion, affecting nearly two million students.
  • Special education grants would be reduced by more than $900 million, impacting nearly 500,000 children with disabilities.
  • English Language Acquisition grants would be cut by approximately $60 million, affecting an estimated 377,000 students.
  • These budget cuts to education programs would take place during 2013-14 school year, with the exception of Impact Aid, with which cuts would become effective during this school year.
  • Sequestration’s budget cuts to these and other education programs would mean increased class sizes and less access to programs for children with special needs, as well as summer school, college counselors, early childhood education and after-school programming.
  • Certain school bond programs would also be affected by a 7.6 percent reduction in federal subsidy payments.
  • In addition to school systems losing federal education funds, there are two indirect impacts. First, federal cuts for programs to state and local governments in other areas may result in those units cutting their aid to schools as they scramble to make up the difference. Second, in communities with a large federal presence, such as military bases or government contracts, the across-the-board budget cuts could be devastating to their economies in terms of lost sales and property tax revenues that are often used, in part, to finance education.

If you have any questions or if you would like to send in a resolution, please contact Kathleen Branch, NSBA’s Director of National Advocacy Services at kbranch@nsba.org or (703)838-6735.