Snowball Effects in Houston

How does the recession squeeze? In Houston, the bankruptcy of the LyondellBasell Chemical company means that the company can't pay property taxes to local school districts. The San Jacinto College district could lose up to 4% of its budget for example.

But that's not the only source of pressure on school budgets.

Also facing pressure from the state to cut spending, district officials are looking at ways to trim the budget without affecting students. Among the possibilities are eliminating vacancies in noncritical positions and curtailing travel and professional development, Lynn said.

The affected Houston school districts aren't in a "state of crisis," but the recession pushes schools in that direction by multiplying the financial pressures on them.