Richmond, VA – Reduce state services and lay off government employees, or keep things churning? Higher taxes, or lower? Those questions and competing ideas will play out when the Virginia General Assembly tackles the huge budget deficit upon its return to Richmond next week.

Facing a deficit of more than $970 million for 2009, the temptation is strong for state lawmakers to accept Governor Tim Kaine's proposal to lay off 1,500 state workers and cut multiple programs and services. However, some experts argue a better way to keep a sinking economy afloat, is to keep money flowing - according to Dave Shreve, an economist with the Virginia Organizing Project.

"One ought to look at the money that the state spends on its employees as a net positive in general, any time you're in a recession like this."

In Shreve's opinion, the budget "fix" that would be the most fair is the one that affects the fewest number of people. Instead of cutting jobs, Shreve's group believes the state should adopt a progressive income tax. This that would increase taxes on those in the state's highest tax brackets, he explains.

"We argue that, if you do things in a progressive manner as we suggest, it's really the only way you can have the lowest possible rates for the greatest number of people."

Others counter with a starkly opposite view: that lowering income taxes for all is the best way to keep money flowing. The last time Virginia's state tax bracket structure was changed was in 1919. Whether it's an option 90 years later will be among the topics of discussion starting January 14, when the legislature convenes.



get more stories like this via email

Ohio's teachers are applauding the governor's recently announced plan to overhaul the state's reading curriculum for elementary schoolers and boost resources for districts.

In his State of the State address this week, Ohio Gov. Mike DeWine also said he's directing resources to improve child well-being and mental health.

Ohio Education Association president Scott DiMauro said he supports a plan that helps kids succeed, but he also hopes the state Legislature will take a hard look at some of the education policies teachers believe are detrimental.

"And at the very top of that list," he said, "is repealing a provision currently in law that requires that students be retained if they don't pass a single test on a single day when it comes to the third-grade reading test."

The governor's plan provides funding to public, STEM and charter schools to pay for curriculum based on the Science of Reading, and for professional development for teachers who need it. Slightly more than one-third of all Ohio students are reading proficiently at their grade level, according to data from the Ohio Research Education Center.

DiMauro said schools are facing a crisis recruiting and retaining quality educators from diverse backgrounds. He said the Fair School Funding Plan - based on the actual cost of educating a child and developed in part by educators and school administrators - could help the state address the issue.

"Having a funding system that is based on the actual cost of providing a high-quality education to every student," he said, "and a formula that's updated to reflect the most recent information on what districts are spending in those areas."

Ninety percent of Ohio students attend public schools. The state spent more than $10 billion on primary and secondary education in 2021, and slightly more in 2022, according to state Department of Education data.

This story was produced in association with Media in the Public Interest and funded in part by the George Gund Foundation.

West Virginia lawmakers are clamping down on corporations trying boost environmentally and socially responsible investing. A new report by EcoConsult Solutions finds their actions will likely cost taxpayers at least $9-million, and perhaps as much as $29-million dollars annually. Senate Bill 262, passed last year, restricts the state from investing in companies deemed to be energy boycotters. Among those boycotted include BlackRock, Goldman Sachs, JP Morgan Chase, Morgan Stanley and Wells Fargo.

Jim Kotcon, chair of the West Virginia Sierra Club, said restricting long-term financial investments in the form of bonds could end up costing residents and taxpayers by reducing the amount of money the state has for public services and programs.

"This appears to be an effort by the state government to help bail out the coal industry and to deny the real cost of climate change on West Virginia citizens," Kotcon said.

More than two dozen states are suing the federal government over a U.S. Department of Labor rule change on environmental, social and governance, or ESG, in workplace retirement accounts. The rule allows 401(k) providers to consider climate change and other issues when making investments.

Kotcon said environmental groups believe state investment funds should take into consideration environmental and social factors, especially since West Virginia communities are struggling to cope with increased flooding and extreme weather events driven by climate change.

"It has become sort of an extremist initiative," he said, "trying to penalize financial institutions that are attempting to do the right thing."

More than a dozen states so far have passed or have pending bills that would pull state funds from investments deemed to be adverse to the oil and gas industry, according to the report.

A Minnesota House committee heard testimony Thursday about the governor's proposed spending plan for education. As these talks unfold, public polling indicates voters want to see more dollars go toward improving public schools.

Gov. Tim Walz's plan calls for boosting the general education funding formula over the next two years and tying it to inflation, while adding more staff such as counselors and social workers.

State Education Commissioner Willie Jett touted the overall proposal during the committee meeting.

"We must never lose sight of the fact that a well-supported educator workforce is fundamental and critical to the survival of our schools, and the well-being and academic success of our students," he said.

Nationally, a new American Federation of Teachers poll found 66% of voters think the government spends too little on education, and nearly 70% want to see more funding. The governor's plan closely aligns with education priorities among legislative Democrats. Republicans, who are in the minority this session, have voiced concerns that too much surplus money would go to underperforming schools.

Minnesota is also looking at boosting unemployment insurance aid to include hourly school workers when they struggle to stay employed over the summer. Rep. Emma Greenman, DFL-Minneapolis, said it's encouraging to see more conversation about helping support staff.

"If your district is like my district," she said, "you're hearing a lot about the staffing shortages, about the need for 'paras' - I hear a lot about that from parents and teachers - about the bus driver shortage."

By "paras," she meant paraprofessionals who help in clasrrooms.

In the AFT poll, teacher shortages and unsafe campus environments were listed as among the most serious problems at schools. The survey was conducted in late December and included input from 1,500 registered voters nationwide.