2012-2013 School Budget Cuts Has Scholastic Worried

Scholastic, publisher of the "Harry Potter" and "The Hunger Games" series of children's books, said revenue from the education sector fell 17 percent in the latest quarter, contributing to a wider loss than a year earlier. The company blamed some of the revenue fall on schools holding back spending ahead of the looming fiscal cliff, nearly $1.2 trillion in across-the-broad spending cuts, offset partly by tax hikes, that will hit the U.S. economy if Congress does not agree to changes.