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DRIVING THE INDUSTRY SINCE 1991


POOREST DISTRICTS MAY BE HARDEST HIT


Te American Association of School Administrators estimated overall education cuts would exceed $4 billion. In its latest study, AASA found that poor school districts would suffer more because they tend to be disproportion- ately reliant on federal revenues. Tis means they would have to apply the across-the-board cut to a larger portion of their operating budgets. “Te additional cuts of sequestration will devastate the


already fragile economic reality of our nation’s schools,” said AASA President Benny Gooden. Specifically, sequestration could negatively impact


nearly 2 million students at 4,000 schools that receive Title I grants, another 500,000 students with special needs and 100,000 children enrolled in Head Start programs, according to Randi Weingarten, president of the American Federation of Teachers. Te Congressional Budget Office projected these cuts


would slash $590 million from federal spending on Head Start, which surpassed $7.9 billion in 2012. STN contact- ed the federal Office of Head Start but had not received a response at press time. Te National Education Association, meanwhile, said the cuts would eliminate 80,000 of the 962,000 slots for children and more than 30,000 jobs of teachers, aides and administrators in the program.


BUDGET IMPACTS BIG AND SMALL School districts such as Roanoke Valley (Va.) County


Schools and Pittsburgh Public Schools have been raising awareness about sequestration and urging families to protest these cuts by writing to their representatives in Washington. If sequestration occurs, Pittsburgh school officials estimate the district would lose $3.5 million in 2013-2014, or 8.2 percent of its budget, in various federal program money including Title 1, Title 2, IDEA and Head Start. Pennsylvania Budget Secretary Charles Zogby said his office estimated that an 8 percent cut in federal spending would cost the state up to $300 million. Tis would trans- late into an estimated annual cut of $43 million for poorer (Title 1) school districts and a cut of about $33 million for special education. Te National School Transportation Association pinpointed


two additional items in the fiscal cliff legislation that are of interest to bus contractors. Te bonus depreciation bill includes a provision to extend the current 50-percent expensing pro- vision for qualifying property purchased and placed in service before Jan. 1, 2014, and, in the case of certain longer-lived and transportation assets, those purchased before Jan. 1, 2015. Te second bill would extend certain tax incentives


through the end of 2013 for biofuels and alternative fuels, including the $1 per gallon tax credit for biodiesel and fuel made from biomass, 30-percent tax credit for investments in alternative fuel refueling property, 50 cents per gallon for an alternative fuels tax credit and an alternative fuel mixture tax credit that covers propane autogas and liquefied or com- pressed natural gas. 


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