Surprise! Teachers Not Receiving the $10 Billion Promised by Obama and Pelosi

Posted on August 18, 2010


What was touted as legislation to “save the teachers” by President Obama and Nancy Pelosi, the New York Times reports that most school districts are taking advantage of the loophole in the $26 Billion legislation.

“A $26 billion federal aid package, signed by President Obama on Aug. 10, allocates $10 billion for school districts to retain or rehire teachers, counselors, classroom aides, cafeteria workers, bus drivers and others — with the remainder of the money directed toward health care for the poor, emergency personnel and other state purposes.

The education measure requires states to distribute the money for the current school year, but allows school districts to spend it as late as September 2012. It also allows schools to roll back furlough days. The education department estimates it could salvage about 160,000 jobs.”  (emphasis mine) link

A total of 300,000 jobs were predicted to be “saved or created” by passing legislation even the President admitted was a special interest bill:

“We can’t stand by and do nothing while pink slips are given to the men and women who educate our children or keep our communities safe,” Mr. Obama told reporters in the Rose Garden on Tuesday.

“If America’s children and the safety of our communities are your special interests, then it is a special-interest bill,” Mr. Obama added. “But I think those interests are widely shared throughout this country.” link

Instead, according to the Times, the “special interest” appears to be the school districts, (looking at future shortfalls), planning on keeping the money and not re-hiring teachers already laid off:

“As schools handed out pink slips to teachers this spring, states made a beeline to Washington to plead for money for their ravaged education budgets. But now that the federal government has come through with $10 billion, some of the nation’s biggest school districts are balking at using their share of the money to hire teachers right away.

With the economic outlook weakening, they argue that big deficits are looming for the next academic year and that they need to preserve the funds to prevent future layoffs. Los Angeles, for example, is projecting a $280 million budget shortfall next year that could threaten more jobs.” Link

It’s anyone’s guess where the $10 billion will go now. Or the other $16 billion that was supposed to be directed to the state’s Medicaid programs. Of course, tapping into U.S. corporations investing in foreign markets, and cutting food stamps in 2014 will pay for this latest “special interest” bailout. Right? While Obama and Pelosi continue their record deficit spending, some how the “trickle-up” process doesn’t seem to be working.

– Via Hot Air –