GREENSBURG, Ky. -- Kentucky's wealthiest school districts had nearly $3,000 more to spend per student than the state's lower-income districts, according to a new report with data from the 2018-2019 school year.

Superintendent of Green County Schools William Hodges said before the pandemic, he had to rely on capital-fund transfers to pay for buses and other essentials. He added the district now is in "triage mode" to make sure students' basic needs are being met.

"We shifted funding to make sure kids are fed at home," said Hodges. "Internet access in south central Kentucky, it's tough for our families, so we've created hot spots throughout our county. We've purchased multiple devices to try to become a one-to-one district, where every child at home has a device."

According to the Center on Budget and Policy Priorities, federal relief will close just one-fifth of state revenue losses. But public schools are faced with additional pandemic-related costs, including technology for distance-learning, cleaning and sanitizing equipment, and Personal Protective Equipment.

Anna Baumann, deputy director of the Kentucky Center for Economic Policy, said with the ongoing recession, students living in counties with less property wealth will likely feel the greatest effects.

"So we as a state, and local communities certainly, can't bridge the gap on our own," said Baumann. "Only Congress can provide the kind of aid that will stabilize Kentucky's budget and avoid more cuts that hurt students in our poorest communities the most."

Tim Brobrowski, superintendent of Owsley County schools, said his district in the Appalachian foothills has worked for a decade to improve distance learning for inclement weather.

And while he said he believes they're mostly prepared for the COVID-related challenges, Brobrowski said he worries about the longer-term impact the pandemic will have on revenue streams.

"When the dust settles on all this and we come back around, we obviously know that funding could be impacted through a variety of different methods," he said.

Before the pandemic, Kentucky ranked in the top four states nationwide for the largest school funding cuts per student since the Great Recession.

Rural Nebraska could lose on two fronts if two of Gov. Jim Pillen's budget vetoes are allowed to stand.

Pillen struck down a second year of increases in Medicaid reimbursement rates and millions of dollars for Rural Workforce Housing.

Dr. Jed Hansen, executive director of the Nebraska Rural Health Association, called the veto a "gut punch." He said all of Nebraska's hospitals and nursing homes will feel the effects, but especially those in rural communities, where more than 60% of hospitals operated at a deficit last year.

"So, the narrative the governor had used -- that hospitals were 'better off financially coming out of the pandemic' -- just wasn't true," Hansen asserted. "And especially wasn't true for our rural hospitals."

The Legislature had approved $20 million for rural housing development over the next two years, which the governor also nixed.

Johnathan Hladik, policy director for the Center for Rural Affairs, said a lack of housing is the "number one workforce issue" in the state, noting it is a major reason jobs remain unfilled in Nebraska's smaller towns. He pointed out the higher cost of building in rural areas makes it unlikely developers would start such projects on their own.

"We're talking about standard houses for the workforce to relocate to a community," Hladik explained. "To become employed, contributing members of that community."

With his veto, the governor cited the investments the state has made in affordable housing over the last few years, but Hladik countered it came after years of no support for housing. He maintained the state is still "playing catch-up," with the housing problem far from solved.

Hladik added the program would fund grants to nonprofit development corporations to partially cover the costs of building moderately-priced, owner-occupied houses and rental housing units.

"When you talk about how we populate our rural areas, how we attract people to rural areas, how we fill the open jobs that are in rural areas, this is a narrowly targeted program that has the ability to do that," Hladik contended. "I think it's important that it has our support."

Hansen stressed it is also important to raise the Medicaid reimbursement rate, noting maternal care and behavioral health tend to be heavily Medicaid-dependent, so the services are at particular risk in Nebraska's rural hospitals.

"We feel that those have been areas -- mental health, maternal care, family care -- that have been important to him," Hladik acknowledged. "He's expressed that those are values that are important to him. And this veto, we just feel, doesn't line up with that."

A decision about overriding both vetoes is expected on Wednesday.

Over the weekend, lawmakers announced they have reached an agreement to reduce spending and address the debt limit. The deal needs a full signoff from Congress before it becomes law.

West Virginia could lose billions of dollars for programs like Medicaid and Head Start under the historic spending cuts House Republicans are proposing. An analysis by the group Americans for Tax Fairness found the GOP debt ceiling budget would reduce federal aid to the Mountain State by $518 million in 2024, and by more than $8 billion over the next decade.

David Kass, executive director of Americans for Tax Fairness, said Republican lawmakers are pushing for massive cuts in federal programs that help working families.

"Seven hundred teachers would be removed from West Virginia classrooms, 5,500 West Virginians would lose access to job-training programs, 220,000 West Virginians would lose health care coverage from Medicaid," Kass outlined. "Those are the cuts, and they'd have a really significant impact on West Virginia."

Republicans argued limiting federal spending through measures like blocking student loan relief and tightening work requirements for programs like SNAP and Medicaid -- along with temporarily increasing the debt limit -- will help the nation pay its bills.

Kass pointed out GOP lawmakers continue to support tax breaks for upper-income households who do need social services to stay afloat.

"They're proposing these cuts in really essential services for people in West Virginia, 'Because we need to cut the deficit,' they say," Kass asserted. "At the same time, they're proposing these tax cuts that will primarily benefit the wealthy."

The Biden administration has proposed restoring the top 39.6% tax rate for households with taxable annual income of more than $450,000 a year, and single earners with taxable income above $400,000, along with closing some of the tax loopholes used by the wealthy.


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The looming U.S. debt default could affect a host of programs across the country - and in New York, the list includes clean-energy investments.

Treasury Secretary Janet Yellen has said the U.S. has until June 5 before a default would occur. In the meantime, states like New York have been ramping up their clean-energy infrastructure with federal Inflation Reduction Act funds.

A Climate Power report finds the IRA created 950 clean-energy jobs in New York from more than $560 million in funding.

Zander Bischof, head of Regulatory & Government Affairs at MN8 Energy, described how a default could jeopardize the future of these investments.

"It would put pressure on clean energy investment through a few mechanisms," said Bischof. "I think, firstly, it would drive up interest rates, and therefore the financing costs of clean energy assets - which are generally pretty capital intensive. We're talking about most of the costs being to get the steel in the ground, and then very low ongoing operating - and then from there, fuel costs."

He added that a default also could devalue the U.S. dollar, leading to higher costs for these projects.

This isn't the first time the IRA has been threatened. A bill to repeal it appears to be stuck in the U.S. House.

The Joint Economic Committee estimates that repealing the IRA would lead to energy costs of up to $300 a year higher per household.

Some experts feel the alternative isn't much better. House Republicans' "Limit, Save, and Grow Act" would raise the debt ceiling, but slash clean-energy funding.

Sandra Purohit - director of Federal Advocacy at the advocacy group E2 - said she feels after so much progress, it would be a step in the wrong direction.

"If you avoid default under this plan," said Purohit, "you would do so by revoking incentives that are making a huge and positive impact on our economy."

Both President Joe Biden and House Speaker Kevin McCarthy have said they're confident a deal will be reached as negotiations continued over the weekend - although others see it as an impasse that's unlikely to be settled by the deadline.




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