Schools Pack In More Kids to Cope With Cuts

Many California students returning to school this week are being squeezed into over-crowded classrooms. According to the Sacramento Bee, the state is seeing the largest average class sizes in over a decade. The change is part of a new trend where schools are requesting class-size increases, without having to pay stiff penalties, in order to save money.

Large numbers of school districts are bombarding the state with requests to expand classes beyond the legal limits.

The California Board of Education, which reviews class-size waiver requests, gave out 16 exemptions in an 11-month period ending in July. Since then, the board heard 16 more waiver requests at its board meeting Aug. 2 and expects another 16 in September, said Judy Pinegar, manager of the waiver office at the California Department of Education.

The state had no requests for class size increases between 1999 and 2009.

"It's the hot item right now," Pinegar said. "I'm expecting almost every district in the state to request one."

The state allows an average of 31 students in kindergarten, 30 in first through third grade and 29.9 in fourth through eighth grade.

Continue reading at SacBee.com…

The IRS Considers Pressing Schools to Further Reveal Their Business Activities

From NYTimes.com:

The Internal Revenue Service is considering expanding its scrutiny of colleges and universities to focus on billions of dollars associated with academic research, federal financing and intellectual property, a senior agency official said on Tuesday.

The expansion of an investigation would put pressure on the schools to further disclose their inner financial workings as the IRS undertakes a major effort to learn more about whether academic institutions are improperly using their nonprofit status to avoid paying certain taxes.

The expansion, while not yet certain, “is on the table,” Lois G. Lerner, the IRS’s director of exempt organizations, said in a brief interview.

As part of its current investigation, which began last October, the IRS sent unusually detailed questionnaires to 400 private and public universities and colleges about their executive compensation policies and their business activities.

While the institutions are not obligated to respond, not doing so can potentially lead to an audit.

The investigation is modeled upon similar scrutiny of hospitals that began in 2006 and has prompted audits, legislative hearings and stricter tax-filing requirements. The idea is to give the IRS a clear view of how the business of academia operates in the 21st century. “Universities are really part of a rapidly evolving sector, and as sectors evolve and the economy evolves, we’re going to periodically take a hard look,” Douglas H. Shulman, the IRS commissioner, said.