Governor Schweitzer drops appeal in dispute over federal school aid law

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Governor drops appeal in dispute over federal school aid law

By BOB ANEZ
Associated Press

HELENA -- Gov. Brian Schweitzer has decided not to try to defend a new state law that changes the way some schools must spend certain federal money.

In a letter to the U.S. Department of Education released Tuesday, Schweitzer acknowledged that the law likely violates federal restrictions, and he said he would not attempt to defend it before the U.S. education secretary. The administration of Gov. Judy Martz had planned to make its case to the secretary.

Passed by the 2003 Legislature and taking effect last year, the state law imposed new requirements on schools using federal "impact aid" money to pay the salaries of some staff. Under the law, schools must use the money to pay other employee costs, such as retirement, that had been covered by state and county funds.

School districts argued the law would cost them nearly $4 million in state aid.

Federal education officials tentatively concluded last June that the statute violated federal law dealing with how federal money can be spent. That prompted a lawsuit by more than 60 school districts, seeking an injunction to keep the law from going into effect.

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