Ehrlich Budget Leaves Some Schools Short

Officials in 13 Maryland school systems say they stand to lose an estimated $72.3 million because Gov. Robert L. Ehrlich Jr.'s recently released budget proposal did not include funding for a formula that gives extra money to school systems with higher operating costs.

The formula, known as the geographic cost of education index (GCEI), was among a series of recommendations laid out in 2002 by the Thornton Commission on education equity to ensure adequate funding of the state's public schools. The index calls for the state to give extra money to school systems where the cost of living makes it more expensive to educate children. It was adopted by the legislature in 2002, but funding of the index -- unlike other components of the Thornton plan -- is not required by law.

Though Ehrlich (R) has never allocated money for the program, many educators had hoped that this year -- with a surplus of more than $1 billion -- the governor would include the money in his $29.6 billion spending plan. In November, several school systems received a preliminary set of calculations from the Maryland State Department of Education that indicated the index might be funded in this budget cycle. As a result, many of the systems eligible for the extra money included it in their 2006-07 budget calculations.

Thirteen school systems qualify for the funding: Anne Arundel, Baltimore, Calvert, Carroll, Charles, Frederick, Howard, Kent, Montgomery, Prince George's, Queen Anne's and St. Mary's counties and Baltimore City. Prince George's would qualify for the largest allocation: $23.1 million of the $72.3 million.

"The governor believes his current education budget is more than adequate,'' said Henry Fawell, a spokesman for Ehrlich. "The governor for the fourth straight year has proposed a record funding increase for public schools in Maryland."

In past years, Ehrlich has tied funding of the index to the General Assembly's approval of legalized slot machine gambling as a way to pay for government programs without raising taxes. Attempts to legalize slots have failed in past sessions, and there's little chance of a different outcome this year.

While the governor has maintained that he is meeting the school funding requirements as mandated by the Thornton plan, others disagree.

"We have consistently said that Thornton is not fully funded until the GCEI is funded,'' said John Woolums, director of government relations for the Maryland Association of Boards of Education. "While we recognize this does not provide additional aid for every system, it would provide substantially more funding for those systems that have a quantifiable higher cost of providing services."

Educators across the state are saying that if the governor declines to fund the index, they may be forced to make serious cuts.

That is the case in Montgomery County, where Superintendent Jerry D. Weast in December proposed a $1.8 billion budget that includes money to expand full-day kindergarten programs and reduce class sizes. Weast said that if the index is not funded, the school system will face a $17 million shortfall.

"The impact is substantial, because we are working on a very tight budget,'' said Charles Haughey, president of the Montgomery County school board. "Most of the budget goes into necessary things, like teacher salaries. It has an elaborate fiscal architecture to it, and it really is very tightly drawn."

Prince George's County schools spokesman John White said the money is necessary for his system to hire and retain qualified teachers. Though the school system was eligible for $23.1 million under the formula's calculations, it budgeted for only a portion of that money, $14.1 million.

"The money is critical," White said. "I hope the governor recognizes that the [geographic cost of education index] was set up because of reality. It is part of Thornton, and you can't say you're fully funding Thornton without funding GCEI."

In Anne Arundel County, Gregory V. Nourse, assistant superintendent for business and management services, said that with the index unfunded, the school system is hoping it can make enough adjustments to make up for the $4.8 million shortfall.

What will happen with the formula remains to be seen. Ehrlich could fund the index in his supplementary budget. And two bills have been introduced in the General Assembly to make the funding index allocation mandatory. Hearings are scheduled for next week.