Deborah Simmons:

D.C. schools open their doors Monday morning for the start of a new year, and charter parents and advocates say a new problem is compounding an old one.
This school year, the D.C. Healthy Schools Act mandating new feeding and physical-education policies takes effect. But charter schools are scrambling to meet some requirements of the new law, which says schools must feed students locally produced fruits and vegetables and offer students overall healthier meals. The act also raises the bar on physical fitness.
“The majority of charter schools are going in commercial buildings,” said Robert Cane, executive director of the advocacy group Friends of Choice in Urban Schools. (FOCUS). “We support good food and exercise, but charter schools have scrambled to meet requirements.”
Charter and traditional schools often lack cafeterias, and most charters lack green space for children to play or hold gym classes. Many don’t have a swimming pool, gymnasium, football field, tennis court or a track course.

Erik Gerding:

As usual, New Jersey leads the nation. Today, rather than Snooki showing the country a new level of reality t.v. debauchery, we have the Garden State itself becoming the first state of the union ever charged with violating federal securities laws.
According to the SEC release, New Jersey failed to disclose in 79 state bond offerings between 2001 and 2007 (totaling $26 billlion) that two public employee pension funds were underfunded. According to the SEC, the failure to disclose masked
the fact that New Jersey was unable to make contributions to [the pension funds] without raising taxes, cutting other services or otherwise affecting its budget. As a result, investors were not provided adequate information to evaluate the state’s ability to fund the pensions or assess their impact on the state’s financial condition.
Given that this post is about securities law from a securities law professor, I should note that Ma Gerding is a New Jersey state employee.
New Jersey is a special state in many ways, but my gut instincts tell me this SEC action is just the vanguard of a coming wave of state and municipal securities litigation. We have all the ingredients for an epidemic:
Start out with the dire budget situation of states and municipalities squeezed by the financial crisis.

Jay P. Greene

Enrollment at America’s leading universities has been increasing dramatically, rising nearly 15 percent between 1993 and 2007. But unlike almost every other growing industry, higher education has not become more efficient. Instead, universities now have more administrative employees and spend more on administration to educate each student. In short, universities are suffering from “administrative bloat,” expanding the resources devoted to administration significantly faster than spending on instruction, research and service.
Between 1993 and 2007, the number of full-time administrators per 100 students at America’s leading universities grew by 39 percent, while the number of employees engaged in teaching, research or service only grew by 18 percent. Inflation-adjusted spending on administration per student increased by 61 percent during the same period, while instructional spending per student rose 39 percent. Arizona State University, for example, increased the number of administrators per 100 students by 94 percent during this period while actually reducing the number of employees engaged in instruction, research and service by 2 percent. Nearly half of all full-time employees at Arizona State University are administrators.
A significant reason for the administrative bloat is that students pay only a small portion of administrative costs. The lion’s share of university resources comes from the federal and state governments, as well as private gifts and fees for non-educational services. The large and increasing rate of government subsidy for higher education facilitates administrative bloat by insulating students from the costs. Reducing government subsidies would do much to make universities more efficient.

Donald J. Boyd and Lucy Dadayan

Earlier this week, the Bureau of Labor Statistics released state-by-state employment data for the month of June. While national totals had already been released for June, this is the first look at June data for individual states. The national data had shown a very slight increase in private sector employment, compared with May, and slight continued declines in state and local government employment (see Figure 1). This is broadly consistent with past recessions, in which state and local government employment has been far more stable than private sector employment, and in fact rarely declined at all. As in past recessions, state and local government employment changes tend to lag responses in the private sector.

Jay Greene:

So much for my austerity idea, where real reform can only happen once the gusher of new money runs dry. The spigot is going to stay fully open for the foreseeable future, which will kill this opportunity for states and localities to restructure our education system and lower costs while improving outcomes.

The fact that the feds are bailing out schools and preventing reform doesn’t come as much of a surprise. But what is shocking is how the Senate bill proposes to pay for this extra $26 billion — cuts in food stamps. That’s right, we are literally going to take food out of the mouths of hungry people in order to keep upper-middle class teachers fully employed with their gold-plated pensions and health benefits.

And if that wasn’t outrageous enough, look at what the Milwaukee teachers union would like to do with their gold-plated health benefit. They want to restore a prescription benefit for Viagra, which had been cut in 2005 to save some money.