Economy brakes school spending

School budgets have seemed to defy gravity in recent years — going up steadily without ever coming down. But school board members from across the country say that's likely to change soon, and they're bracing for leaner times forced by the nation's economic downturn.

Board members in the District last week for an annual conference said shortfalls in state budgets, coupled with pessimistic predictions about local revenues, are forcing them to consider ways to trim next year's budgets, which they are working on now.

About half of the states are facing projected budget shortfalls, according to the Center on Budget and Policy Priorities, a District-based liberal research group.

The downturn in the housing market has precipitated a drop in state revenue from sales taxes associated with construction materials, furniture and other goods, said Liz McNichol, senior fellow at the center. She said recent job losses around the country also could catalyze a reduction in income taxes collected by states...