School boards nationwide brace for revenue declines
Associated Press, February 12, 2008
(excerpt) School budgets have seemed to defy gravity in recent years: going up steadily without coming down. But school board members from across the country said that is likely to change soon, and they are bracing for leaner times forced by the nation's economic downturn.
Board members in Washington last week for an annual conference said shortfalls in state budgets with pessimistic predictions about local revenues are forcing them to look for ways to trim next year's budgets, which they are working on now.
About half of the states are facing projected budget shortfalls, according to the Center on Budget and Policy Priorities, a Washington-based research group.
The downturn in the housing market has led to a drop in state revenue from sales taxes from construction materials, furniture and other goods, said Liz McNichol, senior fellow at the center. She said recent job losses around the country could lead to a reduction in income taxes collected by states.
At the same time, economists predict local revenues will drop over the next few years as real estate values decline, generating less in local property taxes for school budgets.
(excerpt) School budgets have seemed to defy gravity in recent years: going up steadily without coming down. But school board members from across the country said that is likely to change soon, and they are bracing for leaner times forced by the nation's economic downturn.
Board members in Washington last week for an annual conference said shortfalls in state budgets with pessimistic predictions about local revenues are forcing them to look for ways to trim next year's budgets, which they are working on now.
About half of the states are facing projected budget shortfalls, according to the Center on Budget and Policy Priorities, a Washington-based research group.
The downturn in the housing market has led to a drop in state revenue from sales taxes from construction materials, furniture and other goods, said Liz McNichol, senior fellow at the center. She said recent job losses around the country could lead to a reduction in income taxes collected by states.
At the same time, economists predict local revenues will drop over the next few years as real estate values decline, generating less in local property taxes for school budgets.
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