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National
School districts divert funds as employee health care costs climb

Rising employee health care costs are placing growing pressure on school district budgets, forcing leaders to make difficult financial tradeoffs that could affect classroom investments, facilities, staffing, and employee recruitment, according to a recent survey by AASA, The School Superintendents Association, and the Association of School Business Officials International. The survey of 767 superintendents, conducted in March and April, found that 98% said rising health care costs are having a measurable impact on their district budgets. While the findings are not nationally representative, they reflect the views of members of both organizations. Nearly half of respondents said they had already shifted funding away from other priorities to cover higher health insurance costs. According to the survey, prescription drug costs were the leading driver of higher insurance premiums, cited by 60% of respondents. Elleka Yost, ASBO's director of advocacy and research, emphasized the broader consequences of escalating health care costs. “When you consider the opportunity costs, if you’re putting money toward rising healthcare premiums, there are things you are not able to invest in instead,” she commented. “If districts are no longer able to provide those attractive benefits packages, someone … may be more likely to find a career somewhere else that’s able to provide more robust paid benefits or a higher salary." 

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Education Slice
California
State backs $350m boost for immigrant student program

California lawmakers have proposed investing $350m through 2032 to expand the California Newcomer Education and Well-Being (CalNEW) program, which provides English language instruction, academic support, educator training, and family services for students who are new to the United States. The funding, included in the Legislature's budget plan, would dramatically increase support for the program, which previously received $6.9m annually. The expansion would allow more school districts to participate and, according to advocates, eventually serve all of California's approximately 237,000 newcomer students. The proposal still requires Gov. Gavin Newsom's approval as part of the final state budget. School districts including Garden Grove Unified use CalNEW funding to operate family resource centers, connect families with housing, food, legal, mental health, and health care services, and provide tutoring and instructional support. District officials said those services have become increasingly important as heightened immigration enforcement has left many newcomer families fearful and uncertain about where to seek help.

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Education Slice
Texas
Texas Board approves Bible reading requirement

The Texas State Board of Education has approved a required reading list featuring Bible passages and adopted revised K-8 social studies standards that place greater emphasis on Christianity and Texas history. The changes, approved after days of public testimony and debate, will begin rolling out in the 2030-31 school year and affect the state's 5.5m public school students. The reading list makes Texas the only state to require Bible readings in public schools, with biblical texts included in every grade except kindergarten. Critics argue the move promotes Christianity and excludes other faiths, while supporters say the Bible is historically significant and reflects the nation's Judeo-Christian heritage. The revised social studies curriculum reduces the emphasis on world history and geography while expanding lessons on Texas and American history. It also scales back some instruction on civil rights, slavery, and the contributions of minority groups, including removing lessons on Jim Crow laws and renaming the Tulsa Race Massacre as the "Tulsa Race Riots."

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Education Slice
Florida
Difficult budget year for Central Florida schools

Central Florida school districts are preparing for a difficult 2026-27 budget year as declining enrollment, rising costs, and modest state funding increases force spending cuts, staff reductions, and the use of reserve funds. School leaders in Orange, Seminole, Lake, and Osceola counties say a 1% increase in per-student funding falls short of inflation and does not cover growing expenses, particularly for health care. Seminole County eliminated 242 instructional and support positions to reduce a $30m deficit, while Orange County cut department budgets by 5%, closed seven under-enrolled schools, and continues to face a projected $145m deficit driven largely by rising health care costs. Osceola is managing a $7m shortfall after drawing heavily on its reserves, while Lake County has reduced spending and merged two middle schools to stay financially stable. District officials attribute enrollment declines to lower birth rates, reduced immigration, and the rapid expansion of Florida's universal school voucher program, which has shifted funding away from traditional public schools.

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