From MDR
 

The Year Ahead? In a Word…Challenging

 

A Conversation With Charles Blaschke, Education TURNKEY Systems, Inc.

 
“For the first time in ten years, the federal education budget was cut. The 1% across-the-board cut will have impacts that are far-reaching.” Successful School Marketer spoke with Charles Blaschke, president of Education TURNKEY Systems, Inc., to give education marketers additional insight about the implications of the new education budget. Blaschke noted that several programs, including Title V and Enhancing Education Through Technology (E2T2), were dealt cuts of about 50%. The E2T2 reductions may impact districts’ technology budgets significantly. All told, 80% of American school districts will be affected by decreases in federal Title I funds, for example.

In addition, Blaschke also commented about the allocations of Title I monies, stating that the market can expect some re-allocation of available funds, based on the most recent census data, with actual allocations expected to be released in February/March of this year. He noted that districts with more than 5% of their students qualifying for free and reduced-price lunch will receive funds under all four components of Title I. Said Blaschke, “Based on current information, it looks as though 125 to 150 districts will receive Title I increases initially, based on new census data.”

Special education funds will also be affected by the 1% cut. However, there are particular provisions for districts whose special education population includes an over-representation of minority students.

When asked about pockets of opportunity, Blaschke urged education marketers to monitor earmarks in Title I and IDEA (e.g., Early Intervening Services) education programs and to watch for modifications in the Supplemental Education Services (SES) provisions of the No Child Left Behind legislation.

“This cut in federal spending is more significant than it might appear at first glance. The rises in energy prices, growing enrollment, and health insurance costs for personnel have caused districts to make, in some cases, dramatic cuts in spending, at the same time they’re dealing with increased costs for addressing NCLB provisions.” He also commented that the U.S. Department of Education has begun to monitor districts’ use of Title I monies more closely to ensure compliance. He continued, “The good news in all of this is that state budgets, in many cases, have rebounded and may have the capacity to address some federal budget gaps. Over twenty states are funding remediation programs for high school students taking required exit exams. He also noted that ten states have increased early childhood funding by 20% to 30%. Further, for marketers with products that address specific reading, math, behavioral, or social skills provisions in NCLB or legislative earmarks, the opportunities remain strong.”

When asked about the recent focus on America’s high schools and what the funding response might be, Blaschke noted that policy watchers expect some announcements in President Bush’s State of the Union address at the end of January; however, they do not expect another “NCLB-like” approach. Instead, initiatives emphasizing math, science, and technology literacy are expected, along with more investment in foreign language instruction.

In the face of budget cuts and increasing operational costs, Blaschke urged marketers to target programs and marketing efforts carefully and to pay special attention to those pockets of opportunity that are surfacing. Watch for additional budget updates in future issues of Successful School Marketer.

 

Charles Blaschke is the founder and principal of Education TURNKEY Systems, Inc. The firm specializes in K-12 education niche market research and has developed unique, in-depth market information on special education, Title I, E-rate, and other areas. Charles can be reached via e-mail at cblaschke@edturnkey.com. For more information about MDR’s education target marketing solutions, go to www.schooldata.com.



800-333-8802
www.schooldata.com