Articles Tagged with funding

hope streetThese are grim days for the world of education. Funding cuts past, present, and future loom over schools and districts. Class sizes are swelling, essential services are being trimmed, and any spending decision that can be delayed is sitting in limbo.

The companies that serve schools are feeling the pinch even deeper – while school budgets are down roughly 10%-15% scuttlebutt around the industry has most education companies down 20%-40% from 2011. Data systems, some technology niches, and companies with strong international presence are doing better, but those are the exceptions not the rule.

Relatively speaking schools have bad colds, we have pneumonia.

MHB photo 1-19-09Guest blogger Mike Baum of Sophia Consulting shares his insights on ISTE 2010.

By Mike Baum

In the old Road Runner cartoons, there’s always a point where the slavering coyote, relentlessly and enthusiastically pursuing his dinner, runs off a cliff. But he hangs in mid-air momentarily, falling only when he realizes there’s no longer anything supporting his feet. Walking the floor of ISTE (nee NECC) last week, I thought I heard “beep beep” from time to time.

1185310_us_cavalryFederal ARRA stimulus funding has been keeping schools around the country on life support for the past year. Despite significant layoffs around the country it headed off catastrophe in many states. That era is coming to an end later this year or early next year.

It was heartening to see Secretary Duncan take up the cause in a statement issued today. Unless Congress acts and provides a second round the deteriorating tax climate at the state and local level is going to cause massive disruption to the education system in 2011 and beyond.

“We are gravely concerned that the kind of state and local budget threats our schools face today will put our hard-earned reforms at risk,” he stated. “Every day brings reports of layoffs, program cuts, class time reductions, and class size increases.”

rocket school busEducation is high on the list for the economic stimulus package being proposed by the Obama Administration. Congress also supports turbo charging education so the likelihood of significant aid to schools is very high. But where oh where will the money actually go?

  • Construction?
  • Maintenance?
  • Teachers?
  • Instructional Materials?

As a nation we have some clear choices to make. We should be fighting for the right things amidst all the logrolling and back slapping that go on in DC. If you are part of the education publishing industry you should be engaged with the government relations work at AEP, SIIA, or AAP. These folks are working hard to make sure our voices are heard and they need your support and engagement. All of them welcome members who get involved in this effort.

As experts in this area and as citizens we have a responsibility to speak up. This doesn’t mean pulling strings for our particular companies, it means making sure all of our money is spent wisely with the long term in view.

Today a look at education funding in the current economic crisis from guest blogger Doug Stein. Doug details how the market will react over the next two years and then lays out an interesting theory about how districts will bifurcate into factory and craftsman models on the rebound. Doug is one of the smartest thinkers in the business. His consulting company is Memespark.

Link to Part 1 – Education Spending and the Economy

618869_glass_ballBy Doug Stein