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6/2/2010
Stimulus III derailed - the rest of the story
Last week Dave Obey was all over the news, pushing a $23 billion proposal to save “300,000 education jobs nationwide.” Well, Obey scrapped that plan Friday – at least until members of the House get back to Washington.
Mike Antonucci, sole ruckus-raiser (I think) at the Education Intelligence Agency, has the scoop on the rip-roaring politics of it all and breaks down the week’s events.
NEA EduJobs Lobbying Strikes Out. Last week's big story was the monumental effort by NEA and AFT to pass the $23 billion Keep Our Educators Working Act. But the story didn't follow the usual script. Though we don't yet know the ending, the teachers' unions cannot be happy with the direction the plot is taking.
In rough chronological order, here's what happened:
- NEA claimed the bill will save nearly 315,000 jobs - a 5% increase over the previous highest estimate, while citing an Economic Policy Institute report that the net cost of the bailout will be only $10.8 billion. NEA and AFT support EPI financially, and the "report" is actually a 600-word op-ed piece.
- U.S. Senator Tom Harkin decided not to attach the act to the war appropriations bill, citing a lack of votes for closure, although some Democrats also expressed reservations, according to Politico.
- On May 26, the teachers' unions unleashed a massive one-day lobbying push for the bill - a call-in campaign, a video ad that lacked only daisies and a nuclear bomb in order to qualify for "least subtle political message ever," and a press conference with the U.S. Secretary of Education, the chairmen of the House education and appropriations committee, and two pink-slipped teachers. This was the high-water mark.
- The Heritage Foundation released a web memo with a short history of recent education spending and hiring. * On May 27, the Washington Post reported hearings in the House Appropriations Committee might begin that day, but also noted that "teacher layoff projections have dwindled in San Francisco from 700 to 350 to 195, pending ratification of a labor agreement that includes furloughs."
- The Education Commission of the States claimed the bill would save 309,000 jobs, and broke the figures down by state. The commission did not claim 309,000 employees would be laid off, only that, according to the bill's disbursement formula, the money was sufficient to cover the costs of 309,000 jobs.
- Something's not quite right, opined the American Enterprise Institute's Rick Hess. The ECS analysis assumed that "all K-12 positions created or saved would be teaching positions. Teaching salaries tend to be higher than other salaries within K-12 school districts. Thus, if districts opted to use these funds to hire or retain non-teaching positions, larger job growth could be generated." It also computed the costs based on average teacher salaries and benefits for each state. But the laid off employees aren't "average." Because of seniority provisions, most are at the low end of the salary scale. So where did the $23 billion price tag come from? Perhaps we're paying to save more than 400,000 jobs when only 100,000 people will be laid off.
- The Washington Post editorial board noted, "The bill would distribute money to states according to their population, not expected layoffs; states where no layoffs are imminent would get checks anyway, and the majority of states would receive more than they could possibly need to avoid layoffs. The Senate version of the bill permits them to spend the excess on other things."
- What other things? First, the U.S. Department of Education gets $1 million off the top. Then, states may retain up to 5% for administration and the "costs of retaining or creating positions in the State educational agency." The rest of the funds may be used only for "compensation and benefits and other expenses necessary to retain existing employees, and for the hiring of new employees," and "on-the-job training activities." In short, the money could be used to hire new employees, and this provision can be interpreted to allow the funds to be used for pay and benefit increases for existing employees. A cynic such as myself might also mention that "other expenses necessary to retain existing employees" could mean anything - from a teacher appreciation party to public relations costs.
- House Appropriations Committee Chairman David Obey, fresh off his appearance at the union press conference, canceled and did not reschedule a meeting called to place in the measure into the war appropriations bill. The AP story also quoted Maureen Dinnen as saying the jobs crisis "wakes her up at night," and described her as a "retired teacher and school board member" in Broward County, Florida - failing to mention Dinnen's former position as president of the Florida Education Association.
- The unions claimed the delay was no big deal, telling Education Week the decision was made "only because of the press of items being dealt with yesterday, not because of a lack of support for the bill."
- Kim Anderson, NEA's director of governmental relations, said, "We really think (the layoffs) will have the most catastrophic impact on education that we have seen since the Great Depression." Well, yeah, if you don't include the 378% increase in the number of teachers, the tripling of teacher salaries (in inflation-adjusted dollars) and the 900% increase in per-pupil spending (in inflation-adjusted dollars). But somehow, claiming that the layoffs will, at worst, "have the most catastrophic impact on education that we have seen since Fall 2003" doesn't have quite the same effect. * Newsweek doesn't share the unions' optimism about the bill's chances, stating "that there's a chance the proposal could be revived next week, but betting money as Congress prepared to leave town for the Memorial Day weekend was that there just aren't the votes to move it forward."
That's where we stand now. We'll see if things change when Congress returns to session next week.
Agree or disagree, the guy is pretty darn thorough in his reporting.
Jo Egelhoff, FoxPolitics.net
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