With an unprecedented $100 billion being invested in education from the federal level, is it possible that the investment will be canceled out by local budget shortfalls?

The Washington Post describes one county that is cutting their school budget in direct response to increased federal funding.

After hearing that an initial batch of $11.8 million in federal funds would soon arrive in Loudoun County, supervisors slashed $7.3 million from the schools budget. They also made clear that if more federal recovery money flows to schools, schools might be asked to give back an equal amount of county dollars.

This is a frightening case study because if budgets are slashed at the local level because the local governments know that they will be receiving federal funds, then the billions in additional funding could end up merely sustaining the status quo.

However, Secretary Duncan has warned schools of using such tactics. According to a Washington Post article:

Education Secretary Arne Duncan has warned states against playing “shell games” with money aimed at schools. The stimulus law and regulations have strings to protect against big drops in education funding but allow the most cash-strapped states to seek some flexibility. “Where we see a state or district operating in bad faith or doing something counter to the president’s intent, we’re going to come down like a ton of bricks,” Duncan said in a March conference call with reporters.

The administration has high expectations for schools to show progress in order to receive subsequent rounds of funding and a share of the “Race to the Top” pot of funds. The “historic opportunity to reform education” may be in jeopardy if federal funds to improve schools are being used just to refill local budgets to necessary levels to avoid job cuts. With some communities already being forced to cut hundreds of school jobs, it may be mission impossible to reform education in this environment.

Photo by artemfinland