INDIANAPOLIS — A more optimistic state revenue forecast means an additional $150 million can go to Indiana’s public schools, partially restoring funding cuts made over the past two years, Gov. Mitch Daniels said Friday.
Daniels said he and legislative leaders have agreed that about a quarter of that money will go toward ensuring full-day kindergarten is provided in all school districts. About 75 percent of districts now offer full-day kindergarten classes, including the three Montgomery County school corporations.
After bringing the program to three-quarters of school districts over the past four years, the Republican governor said he was “eager to finish the job.”
Rep. Tim Brown, R-Crawfordsville, said full-day kindergarten has been on the state’s to do list for a few years.
“Republicans and Democrats have talked about full-day kindergarten for years and we’re happy to say its a priority that we can step up to,” Brown said.
After funding full-day kindergarten, the Department of Education will set up a small fund to reward “excellent teachers” and the remainder will go into the general formula to determine schools’ funding.
“So it’s not much money,” he said, “but in these tough times a little bit of extra money is always helpful.”
Southmont Schools Superintendent Bret Lewis will certainly take the extra money which will help pay for full-day kindergarten, which has been offered the past four years. But he’s not the biggest fan of merit pay for teachers.
“I have so many teachers that do a great job, I fear it will be detrimental to the overall educational process to have to assign merit to a fraction of those who work so hard each day to meet the myriad of needs of our students,” he said in an email.
North Montgomery Schools Superintendent Colleen Moran said she’s happy the state finally recognizes how important kindergarten education is. North schools have offered full-day kindergarten for several years because it is “best practice.”
“Funding early education and intervention, whether it is full-day kindergarten or preschool, has much more merit than the so-called 3rd grade retention reform that has no research basis,” she said in an email.
The forecast received by the State Budget Committee later Friday projected the state would take in $643.7 million more in fiscal 2012 and 2013 than previously thought due to the economic recovery. Legislators will use the forecast to make final decisions on the two-year spending plan that the General Assembly is expected to approve by the end of April.
But Brown and other lawmakers, like Daniels, urged caution.
“But, again, it’s just a projection of possible future money so it’s not something we can spend without thinking that it’s possible it may come in or it may not come in,” he said.
Previous budget plans would have kept overall K-12 education funding at current levels after cuts of about $450 million, or about 3 percent, ordered by Daniels over the past two years.
Daniels said $10 million to $12 million of the additional money would go toward a teacher merit pay program that is nearing approval in the Legislature.
That would leave about $100 million to be distributed among the state’s school districts over the next two years.
Dennis Costerison, executive director of the Indiana Association of School Business Officials, said schools would welcome the money but it wouldn’t make up for losses that have caused widespread teacher layoffs and other cuts.
“It’s very much appreciated, but if they think this is going to make a huge difference, it isn’t,” he said. “Hopefully, this will help us keep more teachers in the classroom.”
On the other hand, Brown said, it’s better than having to cut more.
“I think definitely when you look at how the economy has hit every facet of government hard this will be like a fresh breeze,” he said. “Again, it’s a small amount but it will relieve some of the stress I think we’re feeling in school systems.”
House Minority Leader Pat Bauer accused Daniels of ignoring his own education cuts and noted that only part of the $150 million would go toward day-to-day school operations.
“In that light, it is a small victory for our schools that this governor is restoring some of that lost funding, but it does not make up for the lost programs and personnel that have been inflicted on schoolchildren, thanks to this same governor,” Bauer, D-South Bend, said in a statement.
The spending plan approved by the House last month allocates about $6.25 billion a year in operating money for public schools — nearly half of the state budget. The Senate Appropriations Committee is scheduled to vote on a revised budget plan on Monday.
“I think it just re-emphasizes the focus that we have that K-12 is the top priority for the legislature,” Brown said.
House Speaker Brian Bosma, R-Indianapolis, and Senate President Pro Tem David Long, R-Fort Wayne, joined Daniels at Friday’s news conference, with both saying the plan to direct additional money to schools would have wide support among legislators.
“Early childhood education is a critical component for our young people,” Long said. “Full-day K is a very important part of that.”
John Ketzenberger, president of the Indiana Fiscal Policy Institute, predicted lawmakers might not limit spending from the unanticipated revenue to Daniels’ proposed $150 million. “I’m anticipating the Senate may find a few areas ... including education ... maybe to spend a few more dollars,” he said.
But he said most of the money still will likely go into state reserves “so if something happens to the economy they won’t be got short.”
“I think they’re proceeding cautiously, and rightly so,” Ketzenberger said.
Journal Review reporters Tommy Conroy and Barry Lewis contributed to this report.
