Some Rich Districts Get Richer as Aid Is Rushed to Schools

By Sam Dillon

RANDOLPH, Utah — Dale Lamborn, the superintendent of a somewhat threadbare rural school district, feels the pain of Utah’s economic crisis every day as he tinkers with his shrinking budget, struggling to avoid laying off teachers or cutting classes like welding or calculus.
Just across the border in Wyoming, a state awash in oil and gas money, James Bailey runs a wealthier district. It has a new elementary school and gives every child an Apple laptop.
But under the Obama administration’s education stimulus package, Mr. Lamborn, who needs every penny he can get, will receive hundreds of dollars less per student than will Dr. Bailey, who says he does not need the extra money.
“For us, this is just a windfall,” Dr. Bailey said.
In pouring rivers of cash into states and school districts, Washington is using a tangle of well-worn federal formulas, some of which benefit states that spend more per pupil, while others help states with large concentrations of poor students or simply channel money based on population. Combined, the formulas seem to take little account of who needs the money most.
As a result, some districts that are well off will find themselves swimming in cash, while some that are struggling may get too little to avoid cutbacks.
Still, educators are accepting the disparities without challenge. Utah, which stands to get about $400 less per student than Wyoming, says it is grateful for the money and has no complaint. There is widespread recognition that the federal money is helping to avert what could have been an educational disaster in some places.
Democrats in Congress decided to use the formulas to save time, knowing that devising new ones tailored to current conditions could require months of negotiations.
“These formulas were the best vehicle for getting these emergency economic recovery funds out to school districts as quickly as possible, to help them immediately stave off layoffs,” said Rachel Racusen, a spokeswoman for Representative George Miller, Democrat of California, who is chairman of the House Committee on Education and Labor.
The education secretary, Arne Duncan, said that he, too, was aware of the disparities but that no formula was perfect. “In this case, people are just extraordinarily thankful for these unprecedented resources,” Mr. Duncan said in an interview. “So I’m aware of these disparities, but we’ve received zero complaints.”
Still, the occasional mismatch between educational needs and emergency financing can be striking.
Utah, where a $1.3 billion budget deficit has threatened deep school cuts, will get about $655 million in education stimulus money, or about $1,250 per student, according to the federal Department of Education. Wyoming, which has no deficit and has not cut school budgets in many years, will get about $1,684 per student.
North Dakota, which also has no budget problems, will receive $1,734 per student. California, which recently closed a $42 billion budget gap through July 2010 partly through deep spending cuts, will get $1,336 per student.
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