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Legislative Finance Committee proposes belt-tightening measures in budget proposal

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By Associated Press

Key provisions of a budget proposed Monday by the Legislative Finance Committee for the 2011 fiscal year, which starts July 1 and runs through June 30, 2011.

PUBLIC SCHOOLS

—$2.4 billion for public schools and other educational programs. That's about 3.5 percent lower than the combined state and federal aid for this year after cutbacks made during an October special session to deal with a budget shortfall. About $210 million in federal economic stimulus money is going to schools this year and the committee proposed $24 million for next year. However, additional state money is recommended to soften the blow to schools. The committee recommends revamping the funding formula for schools to help save money. Those changes include restricting the small schools that qualify for extra state aid.

HIGHER EDUCATION

—$799 million for the state's network of colleges and universities. That's almost 4 percent lower than this year. State aid was cut about $20 million because the committee expects schools to help pay for their operations through tuition increases next year: 6 percent for resident students and 15 percent for nonresident students at four-year schools and 15 percent for students at two-year colleges.

MEDICAID


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