Some Utah school districts are heeding legislative leaders' advice to hold off on spending $101 million in federal cash for schools until lawmakers formally approve and decide how to use it.
Others, however, are already spending the anticipated dollars, saying schools and children need the money now. The Alpine district already has added more teachers and the Provo district is paying for full-day kindergarten.
Gov. Gary Herbert sent the state's application for the $101 million to the feds on Tuesday. The money is part of a federal $10 billion Education Jobs Fund program meant to help schools save teaching jobs this school year.
House Speaker David Clark, R-Santa Clara, and Senate President Michael Waddoups, R-Taylorsville, however, sent a letter to school districts last week encouraging them "to avoid making commitments to spend or obligate this money at this point." They asked school districts to hold off because the Legislature has not yet formally approved the money and because they're still seeking more information from the U.S. Secretary of Education about how the money may be used.
For example, lawmakers are considering using part of the money to fill a shortfall of $44 million, according to preliminary figures, in the state's Education Fund. They're also considering putting it into the state retirement system to help educators or putting it toward additional preparation days for teachers, said Waddoups on Wednesday.
Such options, however, would leave less than the $101 million for school districts. A special session for the Legislature to approve the money will likely be held in coming months, Waddoups said. State recommendations for using the money will also likely be made in coming months.
Waddoups said it's risky for districts to start spending the money before all that happens.
"That's like going out and buying a house before you've got a job," Waddoups said. "I think the money will come. I think it will be spent. I just would encourage everyone to wait and make sure it's spent in a most advantageous manner."
But some districts are moving ahead now. The Utah Education Association has also spoken out against the request that districts delay spending.
Alpine has already added teachers to fill the equivalent of 26 full-time positions and given all its schools an extra two hours a day of secretary/aide time. The district hopes the additional teachers will help its schools, given that the district raised its average class size by one student this year to help deal with the budget shortfall.
The Jobs Fund money is only intended to last one year. But Alpine decided to spend the money on teachers a continuing expense because that's where the greatest need was, said Rhonda Bromley, district spokeswoman.
"It was such a need because of the growth in our district," Bromley said. "Class size obviously is an issue, and it's a top priority to our board, and it's a concern to parents."
She said if the federal money doesn't come through, the district will cover the costs from its reserve funds. She said the district will have to see what happens with the economy and enrollment growth before deciding what to do with the teaching positions next year.
If about half of the $101 million were used at the state level, Alpine could receive about $5.6 million, according to state estimates. That amount would cover the cost for the additional teachers and aide time, with money left over to spend. Alpine is waiting until more decisions are made at the state level before deciding what else it might do with the money.
The Provo district is also spending cash in anticipation of the federal funds. The district has already paid for all-day kindergarten at its elementary schools at a cost of about $350,000.
"We have a need right now," said Greg Hudnall, Provo director of student services. "Our students are already in the pipeline that need help, so waiting a year doesn't help us because then they're that much further behind."
He said if the money doesn't come through, the district may have to end the program at the end of the semester or make choices regarding other plans for the money. The district also hopes to use the money to provide more intervention for struggling students, develop a plan for performance pay and reduce class sizes, among other things.
Other school districts, including Canyons, Salt Lake City and Davis, are waiting on more information before spending the money. But all three hope to spend the money on teachers even though that's a continuing expense.
Though no formal school board decision has yet been made, Canyons hopes to use the money to hold class sizes steady next school year in the face of a projected $15 million revenue shortfall. Though the money is intended for use this school year, districts may technically use it through September 2012. Increasing class sizes by even one student would mean cutting about 47 teaching positions, said Keith Bradford, Canyons business administrator.
The Davis district is tentatively considering using the money to reduce class sizes and to restore two school days cut this year. But the district will likely wait until more decisions are made at the state level, said Christopher Williams, district spokesman.
The Salt Lake City district is also hoping to use the money to hire teachers. Jason Olsen, district spokesman, said the district would like the additional teachers as soon as possible, but will probably wait until more decisions are made at the state level.
"We're basically waiting because of the uncertainty factor," Olsen said. "We don't want to go out there and build a budget or get hopes up of hiring people if this money does not go out the way we hope or expect it to."
The Granite School District is still gathering information and deciding how to use the money, said spokesman Ben Horsley. He said, however, that the district is leery about using the money for continuing expenses, saying "that would be fiscally irresponsible in our board and administration's view."
Per federal law, the money may be used for compensation, benefits and support services to retain current employees, rehire past employees and/or hire new ones. The money may only be used for school-level employees, and it may be used for salaries, performance bonuses, health insurance and retirement benefits, among other things.
lschencker@sltrib.com

