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Orange school district to lose 3,100 students, millions in funds next year

Orange school district to lose 3,100 students, millions in funds next year

Yahoo21-04-2025

Orange County Public Schools it is set to lose about 3,100 students and $27.8 million in state funding for next school year, a loss that has prompted fears about teacher layoffs and crowded classrooms.
In a recent memo to employees, OCPS said the expected loss of state money will have 'major implications' on the one of the state's largest school districts and will mean all departments must reduce their operating budgets by 2%.
'We must be strategic and innovative in our approach to budgeting, prioritizing the initiatives that have the greatest impact on student outcomes,' the memo read.
The projected drop in enrollment is the biggest since the 2020-21 school year, which saw a 10,000-student decline in the wake of the COVID-19 pandemic, district spokesman Scott Howat said. The COVID-era enrollment declines were offset by the arrival of federal COVID-19 funding, but that money dries up this school year.
Declining birth rates and the expansion of the state's school voucher program — which provide state-funded scholarships to any interested student — are driving OCPS's current enrollment drop, Howat said.
The state expanded the voucher program in 2023, wiping out family income requirements, and voucher use has jumped 67% since then. Because schools are funded on a per-pupil basis, declining enrollment means a drop in state money.
Howat said Orange County was not alone in seeing an enrollment loss as 47 out of 67 other Florida school districts are also projecting they'll enroll fewer students next year.
The district is pushing the state Legislature to increase the per-student allocation to help alleviate the funding shortfall, he said, and OCPS' goal is to keep teachers in classrooms.
'Our hope is that we can retain our teachers, all of them,' Howat said. 'We need as many teachers as we can get.'
Clinton McCracken, president of Orange County's teacher's union, said in a statement that the school board has a responsibility to prevent staffing shortages and overcrowded classrooms that could come from a funding shortfall.
'It's critical that the District and School Board prioritize protecting classrooms from cuts,' he said. 'Our students cannot afford larger class sizes or fewer staff.'
Howat said that the district would send teachers additional information about possible school assignment changes once the state budget is finished, which he said could be by the end of the week. Teachers might need to switch schools as the enrollment drops might be more severe at some campuses than at others.
Angie Gallo, a member of the Orange County School Board, said she's concerned for the district's teachers. Before the district considers cutting instructional positions, it needs to look at what programs it could go without.
'People are the best choice for our students. Teachers, high quality teachers,' Gallo said.
As OCPS continues to lose students, and then subsequently lose funding, to school-choice vouchers, Gallo said the district needs to be more competitive.
She said OCPS should look into district-run charter and micro-schools, which could offer parents more choices.
'In order to stay competitive, we're going to have to be innovative,' she said. 'We're going to have to change how public education looks.'
If a proposed state law passes, OCPS also could also lose $17 million from the state for programs like Advanced Placement and International Baccalaureate courses, which could cause some high school students to pay out of pocket for materials and exams.

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‘We made a mistake': Pillen accepts responsibility for failed vetoes to Nebraska budget
‘We made a mistake': Pillen accepts responsibility for failed vetoes to Nebraska budget

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time26 minutes ago

  • Yahoo

‘We made a mistake': Pillen accepts responsibility for failed vetoes to Nebraska budget

Nebraska Gov. Jim Pillen. Dec. 10, 2024. (Zach Wendling/Nebraska Examiner) LINCOLN — Nebraska Gov. Jim Pillen has accepted responsibility for mishandled line-item vetoes to the state's next two-year budget while reiterating that many of the suggested cuts will be reconsidered in 2026. Pillen, speaking with the Nebraska Examiner after the Legislature adjourned for the year, said the veto process includes 'human beings' in his office, the Clerk of the Legislature's Office and the Secretary of State's Office. On May 21, his office delivered Legislative Bill 261 and LB 264 with line-item vetoes to the Secretary of State's Office, which is the right place for the bills to go when the Legislature is out of session, but not to the Clerk of the Legislature's Office on the other side of the Capitol, which is where bills must be returned when senators are in session. The Governor's Office says LB 261 was line-item vetoed at 1:08 p.m. on May 21 and LB 264 at 1:10 p.m. A spokesperson for the Secretary of State's Office said the bills were delivered to that office around 5 p.m. the same day. The Legislature did receive a separate letter from Pillen the night of May 21 detailing the line-item vetoes, as well as a copy of the bills with the inscribed vetoes, but lawmakers contended the next day that a line-item veto is constitutional only with the inscribed vetoes on the actual bills. Those bills remained at the Secretary of State's Office until morning. The Nebraska Constitution requires vetoes to be returned within five days of being presented to the governor, excluding Sundays. The bills passed May 15 and went to Pillen's office at 1:12 p.m., so the deadline was by the end-of-day May 21. Pillen said the mistake on the night of May 21 was 'a miscommunication on where it was supposed to go.' Pillen was in Washington, D.C., the following day, for a 'Make America Healthy Again' event at the White House. 'Bottom line: We made a mistake. I'd have thought, because we all work together, that a flag would have been thrown and said, 'Hey, let's do X,' but there wasn't, and then the glass of milk was spilled the next morning,' Pillen told the Examiner. The intended vetoes targeted $14.5 million to the state's general fund and $18 million in repurposed cash funds for improvements at Lake McConaughy. He sought to save $14.5 million that the Legislature's budget aimed to use from the state's 'rainy day' cash reserve by trimming spending — $152 million from the rainy day fund went to help balance the budget. The Nebraska Supreme Court, which faced about $12 million of Pillen's proposed general fund reductions (83%), has said the loss of those funds could close vital court services. This was Pillen's second two-year budget — he vetoed $38.5 million in general fund spending in 2023 for the 2023-24 and 2024-25 fiscal years. Lawmakers restored about $850,000 of the trims. Pillen, Secretary of State Bob Evnen and Speaker of the Legislature John Arch have pledged to clarify the line-item veto process for the budget ahead of 2026, and they've agreed that the suggested reductions should be considered when the budget is adjusted next year. Arch has said that to his knowledge, nothing like this had happened before. Pillen, whose office now insists the matter is resolved, said, 'As I told our team, we look in the mirror, we accept responsibilities. I've not met a human that doesn't make a mistake yet.' Pillen and his staff have declined to detail exactly what happened the night of May 21. Rani Taborek-Potter, a spokesperson for Evnen, said no one from the Secretary of State's Office delivered the actual LB 261 and LB 264 with the line-item vetoes to the Clerk of the Legislature's Office, 'nor is it our office's responsibility to do so.' 'When bills are vetoed by the Governor, the vetoed bills are delivered directly to the Clerk of the Legislature's Office by the Governor's office, as was the case for LB 319 and LB 287 to the best of our knowledge,' Taborek-Potter told the Examiner, referring to the two other bills vetoed this session related to expanding SNAP benefit eligibility and fighting bedbugs in Omaha. Taborek-Potter confirmed the Governor's Office delivered the budget bills to the administrative assistant in the Secretary of State's Office just before 5 p.m. on May 21. The Examiner on May 23 requested all records and communications regarding the line-item vetoes from when the budget bills passed May 15 to the date of the records request. The request sought texts, emails and digital messages. It also asked for communications within the executive branch and between Pillen's office and the legislative branch, including staff and state senators. Documents provided in response indicated that Pillen's veto letter detailing his objections was ready by 6:05 p.m., when the state budget administrator, Neil Sullivan, sent it to Pillen's staff. Around 6:27 p.m., Kenny Zoeller, director of the governor's Policy Research Office, the main research and lobbying arm for Pillen, confirmed the letter among gubernatorial staff. 'We are handing this off back to the Legislature POST adjournment,' Zoeller wrote of next steps. 'I will text when it's handed off.' Laura Strimple, the governor's primary spokesperson, sent a draft news release regarding the vetoes at 8:21 p.m. to Sullivan. It was sent to reporters around 11:23 p.m. The Legislature adjourned at 9:20 p.m., and a reporter could see legislative staff discussing the veto letter. Through much of the day on May 22, legislative leadership met off the floor, including Arch. Several emerged just before adjournment at 2:37 p.m. when Arch announced the vetoes could not be accepted and that the Legislature had concluded they were constitutionally improper. Some members of the Appropriations Committee hugged, threw fists in the air and smiled after. Pillen's spokesperson, Strimple, sent a statement to reporters at 4:48 p.m. stating it was the governor's position that Pillen 'clearly took the legally required steps to exercise his veto authority by surrendering physical possession and the power to approve or reject the bills.' She said the Governor's Office would consult with the Attorney General's Office and other counsel. The Policy Research Office, executive branch budget staff and other members of the governor's staff met around 5 p.m. on May 22. Strimple sent her statement on the governor's position to all members of the governor's staff at 5:23 p.m., then to lawmakers at 5:53 p.m. On May 27, the next legislative day, Pillen, Arch and Evnen released their joint statement around 2:54 p.m., ending the possible constitutional dispute and returning to their respective corners, with no one taking blame for the situation until Pillen spoke with reporters this week. Pillen's office asserts that it searched texts and digital messages as part of the public records request but found no responsive records, including from Zoeller, who had pledged to text after delivering the veto letter in one of the emails. The Governor's Office provided no records reflecting communications with the legislative branch. None of the records indicate what happened to the bills after being delivered to Evnen's office. Evnen, speaking with the Examiner on Friday, reiterated that the Secretary of State's Office's role with legislation is to file it, and 'when it's brought to our office and we're asked to file it, that's what we do.' 'There's a certain amount of confusion, really between the legislative branch and the Governor's Office, about those line-item vetoes, and I think that what we will do is sit down and talk through together how that will be handled. That's a really good thing to do,' he said. Multiple lawmakers beyond Arch have quietly teased the suggestion with the Examiner, asking how much clearer the process can be. Asked if there was a reason the original bills in the Secretary of State's Office by about 5 p.m. could not be delivered by midnight on May 21, Evnen said: 'You would have to ask the Governor's Office.' Strimple, asked about the remaining timeline on May 21 and May 22, said that with the Arch-Evnen-Pillen joint statement, 'The matter is concluded.' One of the top targets of Gov. Jim Pillen's intended line-item vetoes to the state's budget bills was about $12 million in spending earmarked for the Nebraska Supreme Court. Corey Steel, state court administrator for Nebraska, told lawmakers that the line-item vetoes to the courts could eliminate various services, including three problem-solving courts in Lancaster and Sarpy Counties, a drug court in Gov. Jim Pillen's home of Platte County, transition living reimbursements for certain adults and non-statutory services for juveniles on probation. Pillen told the Examiner that while he has the 'utmost respect' for the separation of powers between Nebraska's branches of government, he believes each one must look at government differently. He said the courts have significantly increased spending and have money sitting around. Steel, as well as Chief Justice Jeffrey Funke, have said that position isn't accurate and that increased spending has been in part due to legislation that came without new funds. The judicial branch leaders have said that the 'money' held in various funds is now exhausted. However, Pillen said he's not backing down and that the reductions will be considered in 2026. 'We have to be fiscally responsible,' Pillen said, 'and that's all we're asking.' — Zach Wendling SUPPORT: YOU MAKE OUR WORK POSSIBLE

Best Stock to Buy: Macy's vs. Dick's Sporting Goods
Best Stock to Buy: Macy's vs. Dick's Sporting Goods

Yahoo

time40 minutes ago

  • Yahoo

Best Stock to Buy: Macy's vs. Dick's Sporting Goods

While tariffs are a headache for retail, that doesn't necessarily mean the space should be avoided entirely. Dick's Sporting Goods has enjoyed a few years of growth in a turnaround from what was a stagnant business. Macy's, on the other hand, is struggling with weak annual top-line growth and it is shuttering stores. 10 stocks we like better than Dick's Sporting Goods › Retail is a confusing segment right now, with the price of goods impacted via increases in tariffs causing a tougher situation for not only consumers, but also sellers and producers. Let's take a look at two major retailers, Macy's (NYSE: M) and Dick's Sporting Goods (NYSE: DKS). In all, I think one of these two retail titans is showing more signs of life, whereas the other is being forced to shrink to improve its bottom line. Macy's saw an uptick in the few years following the COVID-19 outbreak but has since been in slow stagnation, with revenue declining over the last two years. Looking into 2025, the retailer's first quarter beat estimates, but the overall outlook underwhelmed. The company reported adjusted earnings of $0.16 per share versus estimates of $0.14 per share, while total revenue came in at $4.60 billion compared to expectations of $4.50 billion. From another perspective, things didn't look that great. While revenue came in above expectations, it trailed last year's total sales of roughly $4.85 billion. Operating income fell 24.8% year over year to $94 million, and net income declined 38.7% to $38 million. Diluted earnings per share declined from $0.22 in the first quarter of 2024 to $0.13 per diluted share this year. These year-over-year declines are something that is haunting Macy's and putting downward pressure on the stock. For this year, the company reiterated net sales guidance in the range of $21 billion to $21.4 billion. In comparison, it reported sales of $22.29 billion in 2024. All in all, Macy's cut its profit outlook for the year and expects to raise prices on products to offset the impact of tariffs on its goods. In contrast, Dick's Sporting Goods has done surprisingly OK. First-quarter results included a 5.2% year-over-year increase in sales revenue, to roughly $3.18 billion, while non-GAAP income was flat at $275 million. The company has been building sales annually and provided good guidance for 2025, reiterating its previous expectations of $13.80 to $14.40 in earnings per share. The high end of that range would beat out 2024, which finished with diluted earnings per share of $14.05. Net sales are expected to be in the range of $13.6 billion to $13.9 billion, which would outperform last year's revenue of $13.45 billion. Dick's is also looking to expand through its announced acquisition of Foot Locker for $2.5 billion. This drastically increases the company's position within shoes and sets up Dick's for future growth, as Foot Locker had been in the midst of a turnaround itself. This story is a comparison of a company that is shuttering stores in an attempt to become a leaner machine, relative to a company that seemingly is looking to grow. Though improvement is slow, Dick's has been reporting better year-over-year sales figures than Macy's, with plans to open new stores and even make an acquisition, whereas Macy's plans to close over 100 locations and raise prices. While the potential for tariffs to cause headaches for both of these companies is something to be mindful of, I think you have to go with Dick's Sporting Goods here. Its diversified offerings give it a broader consumer base, while Macy's is more heavily concentrated in clothing, perfumes, etc. Unlike a lot of tech, there's still some value in retail, with Dick's trading at a little over 12 times earnings and offering a 2.73% dividend yield. While the short term might be a bit choppy due to tariffs, long-term this company seems to be making the right moves. Before you buy stock in Dick's Sporting Goods, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Dick's Sporting Goods wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 David Butler has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Best Stock to Buy: Macy's vs. Dick's Sporting Goods was originally published by The Motley Fool

AGNC Investment: Its High Yield Looks Tempting -- Why the Stock May Be Ready to Rebound
AGNC Investment: Its High Yield Looks Tempting -- Why the Stock May Be Ready to Rebound

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time41 minutes ago

  • Yahoo

AGNC Investment: Its High Yield Looks Tempting -- Why the Stock May Be Ready to Rebound

With a high yield and monthly dividend payout, AGNC often draws the attention of income-oriented investors. However, AGNC has struggled in recent years due to rising mortgage rates and an inverted yield curve. The setup for the stock now looks a lot more favorable. 10 stocks we like better than AGNC Investment Corp. › AGNC Investment (NASDAQ: AGNC) has one of the highest dividend yields in the market, sitting at about 16%. But with a stock price that's steadily declined the past few years, investors are right to ask: Is the payout sustainable, and more importantly, is the stock a buy today? For those unfamiliar, AGNC is a mortgage real estate investment trust (mREIT) that owns agency mortgage-backed securities (MBS), primarily guaranteed by Fannie Mae and Freddie Mac. Because these securities are backed by government agencies, they carry virtually no credit risk. But AGNC's business is far from risk-free, and here's where the story gets complicated. The biggest issue facing AGNC the past few years has been higher mortgage interest rates. There have been two main issues that have pushed up rates. One is that the Federal Reserve aggressively raised benchmark interest rates a couple of years ago to combat inflation. This resulted in mortgage rates also climbing. However, that was not the only reason mortgage rates shot up. Spreads between MBS yields and Treasury yields also began to significantly widen. During the COVID-19 pandemic, the Fed was a huge buyer of MBSs, driving down yields and narrowing the yield spread between MBS and Treasuries. However, after the pandemic, it stopped purchasing MBSs and began letting them roll off its balance sheet as they matured. About the same time, banks also began to back off buying MBS as bond prices fell, and the collapse of Silicon Valley Bank, which was heavily concentrated in long-duration MBSs, only pushed banks further away from the MBS market. During this period, the value of AGNC's MBS portfolio, as measured by its tangible book value (TBV), plunged. From the end of 2021 through the end of 2023, AGNC's tangible book dropped 45% from $15.75 to $8.70 per share. It has slipped a bit further since, and stood at $8.25 at the end of Q1 2025. Ultimately, where AGNC's TBV goes, its stock is sure to follow. Despite the rough stretch that AGNC has seen, the setup for the stock now looks a lot more favorable. Fed Chairman Jerome Powell has signaled that more rate cuts could be on the table, and the Fed's own projections point to lower rates in the years ahead. That should be a much better environment for AGNC. Fed rate cuts could benefit AGNC in two main ways. First, it would likely reduce its short-term funding costs; AGNC tries to borrow money to invest in MBSs with longer maturities and higher yields. Second, lower rates could help increase its TBV by boosting MBS valuations. The past few years, the Treasury yield curve was inverted, which means that shorter-term Treasuries, like the two-year, had a higher yield than long-term Treasuries, like the 10-year. Not surprisingly, this is not a good environment for a company that generates its income from the spread between short- and long-term rates. Now, AGNC actively hedges out its funding costs to better align them with the duration of its MBS assets. However, it's not able to fully offset the pressure from an inverted curve over an extended period of time. With the yield curve flipping from inverted to positive (long-term yields being higher than short-term yields) late last year, though, AGNC stands to benefit from wider spreads. AGNC's portfolio is also well-positioned if MBS yields begin to fall. More than 80% of its holdings carry coupons of 6% or lower, which helps limit prepayment risk. Prepayment risk is highest when homeowners begin to refinance into lower-rate mortgages, forcing mortgage REITs to reinvest in lower-yielding MBS. While high dividend yields are attractive, they can also be a warning sign. However, AGNC has maintained the payout through a very difficult environment, albeit sometimes at the expense of a lower tangible book value. It's not fair to say the dividend is completely safe, but if the yield curve continues to steepen, the dividend should become more sustainable. If MBS-to-Treasury yield spreads narrow from historically wide levels as banks or other institutions reenter the MBS market, AGNC could see a meaningful recovery in both its book value and share price. That's the best-case scenario. However, even if that doesn't play out, AGNC still has room to deliver solid total returns. The company pays a monthly dividend of $0.12 per share, which equates to a yield of about 16% based on recent prices for the stock. That dividend income alone puts it in a strong position to outperform in a market that seems to have stalled. With even a modest portfolio value recovery, AGNC could deliver annual 20% to 25% total returns during the next few years. Overall, I'd consider AGNC a high-risk, high-reward income play. However, the stock has already taken the brunt of the blow from higher interest rates and wide MBS-to-Treasury yield spreads, and the current environment may finally be turning in its favor. The wild card is whether historically wide MBS-to-Treasury spreads begin to narrow, because if they do, the upside could be significant. For investors who understand and are comfortable with the risks, AGNC offers a very high yield with strong potential upside. It's not a set-it-and-forget-it stock, but at current prices, it could be a smart investment for income-focused investors during the next few years. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. AGNC Investment: Its High Yield Looks Tempting -- Why the Stock May Be Ready to Rebound was originally published by The Motley Fool

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