Fight Brews Over Federal Education Money

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(Host) There’s a fight brewing over the use of $19 million in new federal education money.

Governor Jim Douglas says he wants to deposit the money directly into Vermont’s teachers’ pension fund.

But the state’s teachers oppose the plan; they argue the money should be used to help preserve teaching positions throughout the state.    

VPR’s Bob Kinzel reports.

(Kinzel) In just a few weeks, Vermont is scheduled to receive $19 million in new federal education funds.  The money is part of a stimulus package that’s designed to save teaching positions throughout the country.  In Vermont, it’s projected that the new law will preserve about 300 jobs.

Governor Jim Douglas says it’s a mistake to use this one time money for ongoing school expenses so he’s researching if he has the authority to put the new federal money directly into the state’s teachers’ pension fund:

(Douglas)

"So I hope we’ll have the opportunity to apply this to the huge unfunded liability we have in our teacher’s pension system because we have an obligation to pay those pension benefits when these teachers retire and right now we don’t have the money."

(Kinzel) Under the Challenges for Change law, state funding for education is supposed to be cut by roughly $23 million next year. 

Education commissioner Armando Vilaseca says he’d like to use the new federal money to offset some of these cuts – but Douglas wants the cuts to go into place as part of an overall effort to reduce spending on education:

(Douglas) "The Challenges for Change legislation that passed our General Assembly this year didn’t say these targets are void if we get more money from Washington. They are targets that the school districts are supposed to take seriously and I think all Vermont property taxpayers expect them to do so."

(Kinzel) Darren Allen is the communications director for Vermont NEA – the state’s teachers union. He says the Governor’s plan runs totally counter to the intent of the new federal law:

(Allen) "We’re in danger of slipping into a double dip recession and one of the ways you prevent that is, when the private sector can’t keep jobs, you don’t go and compound the problem in an economy and fire public sector employees. Number two, the President is also very clear that he wants this money to keep teachers in the classroom."

(Kinzel) Allen says lawmakers did take steps to shore up the teachers pension fund in the 2010 session. He says the legislation increases the retirement age for some teachers and also raises contribution levels.

For VPR News, I’m Bob Kinzel in Montpelier.

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