As this cover story in today's NYT highlights, districts are faced with some very tough choices. Houston superintendent Terry Grier, whom I've met and is doing great things, has the right idea:

As schools handed out pink slips to teachers this spring, states made a beeline to Washington to plead for money for their ravaged education budgets. But now that the federal government has come through with $10 billion, some of the nation's biggest school districts are balking at using their share of the money to hire teachers right away.

With the economic outlook weakening, they argue that big deficits are looming for the next academic year and that they need to preserve the funds to prevent future layoffs. Los Angeles, for example, is projecting a $280 million budget shortfall next year that could threaten more jobs.

"You've got this herculean task to deal with next year's deficit," said Lydia L. Ramos, a spokeswoman for the Los Angeles Unified School District, the nation's second-largest after New York City.

"So if there's a way that you can lessen the blow for next year," she said, "we feel like it would be responsible to try to do that."

…In Texas, Republican Gov. Rick Perry so far has rejected the new federal education dollars. Should he relent, Houston's superintendent, Terry B. Grier, proposes to use $40 million to $70 million of it to extend the school day and year, and to hire tutors. He does not plan to rehire 414 people — including quite a few certified teachers — laid off from the central office staff.

"We can't treat this money as if it's a supplement to a jobs bill," Mr. Grier said. "I want to put people to work to help children."

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