States Using Stimulus to Replace, Not Boost School Aid

duncanxAn internal watchdog at the Education Department says states are using money from the economic stimulus to plug budget holes instead of boosting aid for schools.

President Barack Obama did not intend for state lawmakers to simply cut state education spending and replace it with stimulus dollars. But Congress made that tough to enforce, and the Education Department’s inspector general said in a memo Thursday that some states are doing it.

That means instead of getting extra help to weather tough times, school districts and colleges could wind up with the same level of state aid or with cuts, even as local tax revenues plummet.

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(USA Today 10.03.09)

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