The Free Press, Mankato, MN

Local News

January 22, 2009

Schools may get cut of federal stimulus

House bill to include funding for special education

By Mark Fischenich and Tanner Kent

MANKATO — An enormous economic stimulus package sought by President Obama and making its way through the U.S. House could ease the budget crunch facing Minnesota school districts, including bringing hundreds of thousands of dollars to Mankato Area Public Schools.

Congressman Tim Walz said the House bill, expected to total about $850 billion, will include $13 billion in funding for federally mandated special education programs. For Mankato, the infusion of cash could total as much as $400,000, although school officials are expecting the amount to be closer to $300,000.

District special education director John Klaber said that amount would reflect an increase of about 25 percent over current federal funding. While much of a district’s special education money comes from the state and its own general fund — this year, Mankato spent $4 million to meet unfunded special education costs — he said the potential stimulus would be “significant.”

In most cases, strict spending requirements govern the use of federal funds. Klaber said those requirements would have to be relaxed in order for schools to use those funds to stave off or soften impending budget challenges.

“The intent, as I understand it, is to relieve some of the burden on a school district’s general fund,” Klaber said. “That way, (the additional money) can be spent anywhere — not exclusively on special education.”

Much of the attention on the stimulus bill has focused on job creation through the financing of construction projects and tax cuts aimed at boosting consumer spending and business expansion. But Walz said the legislation also will aim to ease the financial crunch facing schools and state governments, attempting to prevent layoffs of important government workers.

“We don’t want to be laying off police officers, school teachers,” Walz said.

State House Speaker Margaret Anderson Kelliher, who met with most of the state’s congressional delegation this week during an inauguration trip to Washington, D.C., said she expects Minnesota to receive between $500 million and $1 billion overall from the federal stimulus bill. And she said it appears that help for schools, through special education funding, will be included.

“I think it’s probably going to be quite significant,” Kelliher said.

Congress originally pledged to cover 40 percent of the cost of the required assistance for students with special needs, but the federal funding actually covers just 17 percent of the expense.

“It’s clear that there’s a renewed commitment by the federal government to live up to the commitments of the past,” Kelliher said.

Obama wants the stimulus package passed quickly in an attempt to energize a seriously weakened U.S. economy. Kelliher said the House could finalize a bill next week, and Walz is also hoping lawmakers move fast.

“We need to get it done,” he said.

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