NASHVILLE - Gov. Phil Bredesen said Wednesday it is only fair that Tennessee receive $195.8 million in federal aid to save educators' jobs, despite the fact that his administration has not cut teacher funding for local school systems.
The governor told reporters that top state officials are still sorting through federal requirements in a $26 billion aid package for states, which received final approval by the U.S. House on Tuesday.
"Since we have not laid off teachers, we're sitting here trying to struggle with whether we qualify for it," Gov. Bredesen told reporters during a teleconference call. "And if we don't, I'll be fairly irritated just because you shouldn't be punished for managing well."
Despite dropping tax revenues, Tennessee officials have prevented budget cuts on most of the state's Basic Education Program funding formula for schools.
The federal money contains $10 billion to help states on education and another $16 billion in enhanced federal Medicaid payments. The legislation was quickly signed into law by President Barack Obama.
U.S. Department of Education officials did not respond Wednesday to requests for specific details about how states would qualify to receive the education money.
According to federal figures, Tennessee would be eligible for $195.8 million in federal funds. The money is intended to save existing teaching jobs or allow local education agencies to rehire educators who have been previously laid off because of recession-related funding woes.
The state would see another $240 million under the extension of extra Medicaid payments, which is about $100 million less than Tennessee had hoped to see.
In a telephone conference call with reporters on Tuesday, U.S. Education Secretary Arne Duncan said there are an estimated 160,000 educators nationwide who would otherwise be laid off absent the federal funding. Some 3,000 of those are in Tennessee, according to federal figures.
On a recording of the session available on the department's website, Duncan said the money is intended to provide a "lifeline" for communities confronted with "tough choices" which have "meant laid-off teachers, counselors and school nurses."
Tennessee Education Association President Gera Summerford said Bredesen and state lawmakers "have been very protective of education funding." The association did not have exact numbers on how many school staffers lost their jobs last year because of cuts by local school systems, she said, but it was more than the 3,000 the state would be able to hire with the federal money.
While the federal program is intended to delay blows to education, state Finance Commissioner Dave Goetz cautioned local systems about using one-time money for recurring purposes such as salaries.
Extra cash for projects
Bredesen said Tennessee "didn't need" the money from the more generous Medicaid match and added that he did not lobby Tennessee's congressional delegation for it.
"If they're going to give it out, I certainly want our share because our citizens and their children and grandchildren are going to be paying for it," he said. "But it was not something that we need to balance our budget."
In Tennessee, the enhanced Medicaid money would go to a variety of capital projects. State lawmakers had approved a $341 million contingency list of projects, but with only $240 million and, according to the state, as little as $210 million expected to come, those projects would have to be cut back.
The state's contingency funding included $120 million for the state Board of Regents to help expand classroom space at overcrowded community colleges and state technical centers.
Regents Chancellor Charles Manning said he doesn't know what the allocation will be now, but he noted enrollment growth at two-year schools last year hit 15 percent and "early indicators are growth is going to be big again this year ... Some schools are operating Sunday classes."
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