Stimulus won't cover for aid loss

The influx of stimulus money into state school districts won't compensate for the loss of state aid, according to a University of Wisconsin researcher.

From the Wisconsin State Journal:

Sixty percent of school districts in Wisconsin — including Madison’s — will see a decline in aid money next year under a state budget proposal, even after adding in a huge increase in federal stimulus money, a UW-Madison researcher projects.

Faced with a $6.6 billion state budget shortfall, Gov. Jim Doyle and Democrats on the Legislature’s budget committee have proposed cutting state aid to schools and tightening limits on their property tax increases. They have repeatedly said that, on average, federal stimulus money flowing to schools will make up for the added pain from the state.

But the federal money will fall short of offsetting the proposed state cuts for many districts because it comes with strings attached and is distributed through different formulas, experts said.