With his state flush with cash, Gov. Michael F. Easley of North Carolina can have the best of both worlds. Sitting on a $1 billion surplus in an operating budget of $17.4 billion, the second-term Democrat last week proposed a politically popular 13 percent spending increase for K-12 education, while also asking the legislature to block scheduled…

Texas schools would count the salaries of librarians--but not those of nurses, guidance counselors, or bus drivers--as instructional expenses under proposed rules that would define how districts would comply with a new state mandate to spend 65 percent of their budgets on classroom costs. The rules are designed to make it easier for districts to…

Good fiscal news is arriving in state capitals: Tax revenues are finally starting to recover from their four-year swoon. The bad news: States face pressure to meet increasing health-care costs and to replenish rainy-day and other funds legislatures tapped in recent years. The bottom line is that schools will have to fight for significant increases…

Faced with a conflict between state and federal laws, Texas officials have come down on the side of their own law and set up a possible showdown with the U.S. government over millions of dollars in education aid. In determining which schools and districts were meeting annual goals under the federal No Child Left Behind Act, the state last February…

Kansas, Montana, and New York are the states currently under orders from their highest courts to fix their school finance systems. In Kansas, House and Senate leaders have agreed to a plan that would increase per-pupil funding for at-risk, bilingual, and special education students. It would also create a $20 million program to help districts…

State and local officials are slowly untangling complicated webs of accountability, testing, and graduation policies, hoping to give thousands of students displaced by Hurricane Katrina a better handle on their academic standing. While officials in Texas, Tennessee, and Alabama offered some guidance to such students, school leaders in…

An effort to require school districts to funnel 65 percent of their budgets directly into classrooms is gaining traction in several states. Governor Rick Perry of Texas signed an executive order in August mandating that school districts implement the 65 Percent Solution, as the idea is called by the nonprofit group organizing the effort. It also…

Texas has had its Robin Hood school financing system in place since 1993, when the legislature adopted the system in response to a state supreme court order to equalize state spending on public schools. Under the arrangement, any district that has taxable property values exceeding $305,000 per student is not allowed to keep all of its property-tax…