New Public Square

Property taxes rise in the face of a budget deficit

2008-12-31T15:46:00.002-06:00

Steven Walters reports in "Limiting property tax will be no easy feet" that homeowners are paying a larger share of the levy at 71%:

Capitol leaders promise to control property taxes next year, after homeowners and other property owners opened bills this month that, in total, rose by 2.8% to a record $8.6 billion.
Wisconsin's 1.5 million homeowners will pay about 71% of that levy - a percentage that keeps rising. In 1990, for example, homeowners paid 60% of all property taxes.
Doyle said the property tax bill mailed in December on a median-value home assessed at $171,840 will be $2,843, or about the same as last year. Of that total, $1,475 - or more than half - will pay for public schools, and $783 will go to run the local city, village or town.

Reedsburg faces some difficult budgeting challenges

2008-12-27T12:27:00.000-06:00

Ken Leiviska reports in District will leave no stone unturned that Reedsburg is facing some tough challenges for the second year in a row due to declining enrollment, budget cuts, and a referendum:

The school district has already made some tough decisions in an attempt to balance a budget for the 2008-09 school year. Despite cutting three custodial positions, saving $150,000; cutting building maintenance, $175,000; postponing curriculum adoption, $150,000; cutting a part-time clerical position, $2,675; changing the long-term sub pay; and cutting six extracurricular programs, the school district ultimately passed a budget with a deficit of $65,027. The district overspent its budget by $595,117 during the 2007-08 school year.

Because the three-year rolling average for student enrollment is in a period of decline; the district is in the second year operating without referendum money; and because the district is in jeopardy of losing one of the major grants it holds — the Wisconsin Student Achievement Guarantee in Education (SAGE) — there are many tough decisions ahead.

The Wisconsin Way and tax reform

2008-12-27T11:43:00.000-06:00

Steven Elbow reports in Group calls for tax overhaul in new report that the Wisconsin Way is interested in:

Moving school funding away from property taxes, shortening high school time from four to three years, eliminating the corporate income tax. These are a handful of the many ideas an influential group of business and lobbying leaders in the state are hoping to spur a discussion about long-term solutions to Wisconsin's economic woes.

The group's long-anticipated "Blueprint for Change" is the result of 14 months of public forums and meetings across the state to address policy shortcomings that it says has resulted in a tax system that doesn't work and a brain drain of workers with college degrees. The result is an erosion of earning power and quality jobs, according to the group.

Spending increases do not mean increased tax bills for Madison

2008-12-27T11:39:00.001-06:00

Dean Mosiman and Matt DeFour report in Madison property tax bills reflect rate drop of 1.1 percent that:

Despite city and school spending increases, many Madison taxpayers aren't having a sticker shock compared to other municipalities when opening tax bills.

Madison's equalized tax rate dropped 1.1 percent for 2008 while the average of cities, villages and towns in Dane County showed slight increases between 0 and 1 percent, new county tax information shows.

Change in equalized tax rates ranged from a 10.69 percent increase in the town of Deerfield to a 9.76 percent decrease in the town of Blue Mounds. Equalized means all properties are assessed at fair market value.

Revenue limits stay, QEO goes

2008-12-27T11:32:00.000-06:00

Richard Moore reports in Doyle: Keep school revenue limits, repeal salary caps, that Governor Doyle wants to kep the revenue limits in place while getting rid of the QEO:

"I do not intend to take the revenue limits off of schools, so I think like any public employees - there are revenue limits on cities, and firefighters and police go to the bargaining table without any QEO and they have to operate within what those limits are. I don't see why teachers should be treated any different."

Will the Democrats eliminate the QEO?

2008-11-29T17:54:00.002-06:00

Jason Stein discusses teacher pay caps and the QEO in With Democrats in charge, teacher pay cap could bite the dust:

The QEO law allows school districts to avoid potentially costly arbitration on union contracts as long as they offer teachers a yearly wage and benefit increase of 3.8 percent or more.
Since the law took effect in 1993, the average increase in teachers' salary-and-benefit packages has hovered around 4 percent a year, compared to more than 7 percent in the years immediately preceeding the change.
But the law also bars districts from unilaterally reducing benefits, meaning health insurance costs can eat up much of the allowable increase.

With the current budget deficit and Democrats in charge, it is likely that school funding will be revisited very soon.

"By getting rid of the QEO we'll finally see in Wisconsin a variety of different compensation packages emerge from what we've been locked into for (15) years — depressed teacher salaries, rising benefit costs and nobody very happy with where we're at," Doyle said.

Supporters of the OEO said repealing it would make it impossible for schools to survive under state-imposed revenue caps and would threaten the state's more than decade old system for paying for schools.

Might this be the end of revenue limits altogether?

As Wisconsin's deficit grows, how will the state keep pace with its two-thirds funding committment?

2008-11-29T17:48:00.002-06:00

In State deficit forecast rises to $5.4 billion by mid 2011, Steven Walters discusses Governor Doyle's plans to shore up the budget and protect school funding:

Doyle said he wants to avoid raising the sales tax or income taxes. He said his top priorities would be protecting aid for public schools - now about $5.1 billion a year - and for local governments. State aid to local governments helps control property taxes, he said.
"I am going to do everything I possibly can to protect schools," Doyle said. "That doesn't mean they'll get everything they want."

But keeping state government's promise to continue paying about 66% of public school costs will cost an additional $480 million in the next two years, according to the Legislative Fiscal Bureau.

Democrats in the Wisconsin Legislature call for change

2008-11-29T17:35:00.002-06:00

In "Dems look at changing school funding", Shawn Johnson discusses the future of school funding in Wisconsin now that the Democratic party control the state government:

Doyle says he wants to preserve funding for public schools for which the state pays almost two-thirds of their costs.

Actually, the state pays a little over half of public school costs, rather than the "two-thirds" promised when the revenue limits were passed in 1993, which is why districts keep going to referendum and asking local citizens for more money. The state hasn't quite kept up with its end of the bargain.

Johnson writes:

Educators have long said Madison needs to something, because the state’s 15-year-old revenue limits have forced good programs and teachers to fall by the wayside.

The state’s largest teachers’ union says it wants the government limits on school tax revenues and teacher pay and benefit increases.

Residents from the Northwoods plea to reps to fix the formula

2008-11-23T20:04:00.002-06:00

In "To Our Representatives in the Northwoods: Fix the Formula", Linda Goldsworthy questions the fairness of the current funding formula:

School District Number of Students State Aid per Student
Dover #1 117 $4,677
Phelps 162 $1,000
Brighton #1 175 $6,510
Washburn 604 $6,798
Three Lakes 609 $ 943
Bruce 613 $6,659
Platteville 1,425 $6,486
Northland Pines 1,439 $1,028
Maple 1,445 $5,558
Shawano 2,889 $6,494
Rhinelander 2,951 $4,332
Elkhorn Area 2,961 $5,114

Why is a student in Three Lakes worth only $943 of state aid while a student in Washburn, with five fewer students, is worth $6,798? In fact, according to the 2006-07 numbers, the 74 students at the all-male Norris High School in Mukwonago received $14,535 per student in state aid while the 91 students at Geneva J4 were worth a mere $193. Fix the formula.

Pension plan woes directly impact cities across Wisconsin

2008-11-23T19:56:00.002-06:00

From Pension Plan Woes Could Cost Cities:

The stock market's recent decline and its effect on public employee pension plans may directly impact services available in municipalities such as Eau Claire, Rebecca Noland, the city's finance director, said Friday.
Noland said there is talk that the Wisconsin Retirement System may be considering a 0.5 percent rate increase for employers in 2010.
"That 0.5 percent increase would cost the city's general fund about $115,000 per year and about $150,000 for all city funds, general fund included," Noland said. "We are restricted by levy limits in the amount the city may raise taxes, so we will most likely have to further reduce services in 2010 in order to cover the rate increase."

Investment woes affect districts and communities across the state

2008-11-23T19:51:00.003-06:00

David Kestenbaum reports in "Wisconsin's Schools Shocked By Bad Investments" that districts across the state are shocked by the economic crisis that they find themselves in after believing they had made good, safe investments.

"Toxic Debt" in Whitefish Bay threatens teachers' pensions

2008-11-23T19:43:00.002-06:00

Anne Szustek reports in "Europe's Toxic Debt Imperils Wisconsin School Districts Finances" that the Whitefish Bay School District may have left itself exposed after some risky business investments.

VOTE!

2008-11-04T12:18:00.000-06:00

Today is the day to cast your ballot and make your voice heard. Whether you support the school referendum in your district or not, get out and vote to show your support for your representatives who share your beliefs about school funding. Oh, and I think there may be a presidential election going on as well.

Hope in Nerad

2008-10-27T16:15:00.001-05:00

In Madison schools referendum prospects look good, Jason Shepard lays out Nerad's plan if Madison's referendum passes next week: "The plan...would eliminate the paralyzing school board budget battles for the next three years, freeing up significant time for the board and a new administration to chart a new strategic plan and focus on initiatives to boost student achievement."

School funding laws imposed by the state Legislature in 1993 require school districts to seek voter approval to increase budgets by any more than roughly 2.2% annually. Because costs to continue the same programs generally exceed this, districts are increasingly cutting student programs or holding referendums.

Madison officials say they've cut $60 million in services over the past 15 years and little is left to trim that won't reduce student services or increase class sizes.

November's referendum seeks to permanently increase the revenue cap for operating costs by $5 million in 2009-10, and an additional $4 million in both 2010-11 and 2011-12, for a total of $13 million. These increases would be permanent.

The projected tax hike on an average $250,000 home is $27.50 in 2009, $70.60 in 2010, and $91.50 in 2011, for a total three-year increase of $189.60.

To demonstrate fiscal discipline, Nerad has committed to making $1 million in cuts this year, including $600,000 in staff positions, even if the referendum passes. And Nerad pledges $2.5 million in additional spending cuts in the two subsequent years. The district will also transfer $2 million from its cash balance to offset the budget deficit.

Assuming the referendum passes, Nerad's next priority will be to engage the community in a strategic-planning process that could transform many of the district's programs and priorities. The school board intends to approve a process by the end of the year.

Notably, Nerad says he will insist on setting data-driven, annual targets for the strategies.

And he's "committed to pushing" for another look at a 4-year-old kindergarten program, something that has eluded the district despite its embrace by two-thirds of districts throughout Wisconsin. His staff is conducting an updated cost analysis, and he wants a school board discussion and a meeting with various stakeholders in the next few months. He's not ruled out implementing a 4K program as early as next year.

"It's for the kids"

2008-10-27T15:54:00.004-05:00

David Blaska writes about his not so fuzzy feelings for the Madison referendum in "It's for the kids, dammit!"

The school district wants voter permission to permanently exceed the revenue cap for operations money by $13 million a year. Because the state’s school funding formula punishes profligacy, Madison will have to pony up a total of $27 million over the next three years. (I explain that at the end of this blog.) That will add$92 a year to the property tax bill of a $250,000 home.

Even though:
Total K-12 enrollment has declined from 25,087 in 2000-01 to 24,540 in 2008-09.
The district’s annual budget has increased from $183 million in 1994-1995, the first year of revenue caps, to approximately $368 million (2008-09).
Its annual cost per pupil is the second highest in the state at $13,280 for the school year 2007-08.

Blaska gets these facts from Don Severson, "who pretty much IS Active Citizens for Education."

And by the way Mr.Blaska, my blog posts are also a part-time endeavor... and I write them for FREE... for the love of it.

The details of Madison's referendum

2008-10-27T15:22:00.003-05:00

The Madison Metropolitan School District's Board of Education voted unanimously to ask the voters to consider a referendum question on Tuesday November 4.

Here are the details from the Education Referendum fact sheet 9-26-08:

Why these budget gaps?

In 1993, the State of Wisconsin created two competing pieces of legislation. First, the revenue cap (or revenue limit) restricts the amount of funds that a Wisconsin school board can raise from local property tax without going to referendum. This law has allowed an average yearly increase of 2.22% per student above a district's previous year's budget. For the 2008-09 budget of the
Madison Metropolitan School District (MMSD,) this increase is $270 per student or about a 2.5%
increase.

Second, the Qualified Economic Offer (QEO) requires that "school district professional employee" contracts increase by a minimum of 3.8% to avoid arbitration on economic issues. All employee contracts make up about 85% of the MMSD budgets. When districts negotiate a 3.8% total package (wages and benefits) to avoid arbitration but the overall budget can only increase by an average of 2.22%, a budget gap is created. See graph below.

To close the gap, districts have to make cuts in programs and services, create efficiencies, obtain outside revenue and/or go to referendum.

Cuts to stay under revenue cap

Since 1993, the Madison School District has reduced programs and services by over $60 million. The two largest categories of reductions in this period have been 1) direct services to students, and 2) administrative. Together they make up more than 86% of the total reductions.

These reductions include:

157 full-time equivalent positions (FTEs) from special education.
Central office staffing in the areas of physical education, world languages, environmental education, and driver's education.
A total of 52.5 positions from the Building Services area which covers custodial and maintenance operations.
79.6 FTEs from middle and high schools.
32 FTEs from student services.
15.2 FTEs from elementary school art, music, physical education, and reading support.

Efficiencies to stay under revenue cap

Since 1993, MMSD has developed many efficiency measures that create permanent cost savings. Examples:
By using energy-efficient technology when making necessary maintenance repairs, the district saves almost $750,000 annually in energy costs:

Lighting projects that use high efficiency sources.
Motion sensors.
Majority of all single pane glass replaced with insulated glass.
Boiler replacements that use high efficiency boilers.
District-wide temperature control system.
Transportation savings of over $600,000 each year through a partnership with private schools and through consolidating MMSD Schools' start and end times.
Madison Schools is the fiscal agent for a consortium of five school districts that shares human resources and financial management software systems. This partnership benefits MMSD taxpayers by saving $700,000 annually through reduced staff members.
Changes in health insurance plans, which netted $97,000 in savings to the district compared to prior contracts.

A Partnership

The community and the school district would share the responsibility for the gap: the community part would come through an approved referendum. The school district part would come by continuing to make cuts, find efficiencies, and lessen the tax impact - see "Tax Savings" below.

The question

The referendum asks for the approval - starting in 2009-10 - to spend more than the revenue limit will allow. The amount to exceed the revenue limit would be

$5 million in the 2009-10 year,
An additional $4 million in the 2010-11 year for a total of $9 million, and
An additional $4 million in the 2011-12 year for a total of $13 million.

It's a recurring referendum which means that, if approved, the school district could exceed the revenue limit by $13 million in the 2011-12 year and in every year after that.

Tax impact

The projected tax impact on the average Madison home (valued at $250,000) will be

An increase of $27.50 in 2009-10,
In 2010-11, an increase of $43.10 over the previous year, for a total of $70.60, and
In 2011-12, an increase of $20.90 over the previous year, for a total of $91.50.

The cumulative total increase over the three years is $189.60 ($27.50 + $70.60 + $91.50), or an
average of $63.20 per year.

Tax rate

The tax rate -- that is, the property tax paid per $1,000 of assessed value -- is projected to go:

Up 1.1% in 2009-10, (from $9.92 to $10.03, or 11 cents).
Down 2.1% in 2010-11 (from $10.03 to $9.81, or 22 cents).
Down 3.0% in 2011-12 (from $9.81 to $9.51, or 30 cents).

Cuts to be made in next 3 years

Passing a referendum does not necessarily allow the MMSD to add programs and services because reductions will still be necessary. The projected budget shortfall for 2009-10 is $8 million. An approved referendum would provide $5 million. The school district would still need to address a $3 million budget shortfall for 2009-10:

$600,000 from staff positions not allocated to schools.
$400,000 in yet to be determined areas.
$2 million used from the district's cash balance for the 2009-10 year.

Even with an approved referendum, the school district projects it will still have to make cuts of approximately $2.5 million in the following two years.

It should be noted that since 1993 the district has reduced programs and services by over $60 million.

Tax Savings

The district is taking two other actions to lower the amount of tax dollars needed:

Levy $2 million less in the Fund 80 portion of the budget for the 2009-10 year.
Use the Capital Expansion Fund, also named Fund 41. (Funds are categories of the local budget.)

Under Wisconsin's equalization aid formula, the MMSD has to give dollars back to the state because Madison has higher than average property values and higher than average cost per pupil. By using Fund 41, the district can spread the cost of capital projects over a longer period of time, which means the district will receive more from the state and rely less on the local property tax.

"Cuts led to negative impact on schools"

2008-10-27T15:12:00.001-05:00

In Past cuts led to negative impact on schools, Steve Pike, President of Madison Teachers INC, discusses the impacts on Madison schools of having $60 million and over 700 positions cut in the past 15 years:

What's happening here is happening in schools throughout the state. In 1993, the governor and Legislature imposed revenue controls on Wisconsin's school boards, limiting the amount their budgets can increase to about 2 percent per year. Costs are increasing more rapidly than that: energy costs, health insurance costs (no matter what the health plan), and an increase in educational needs all mean that the district's budget needs more than the 2 percent increase in funds per year.

The cuts already made are having a direct, negative impact on our children. The long-term solution is to change the statewide school finance system. For now, the referendum must pass to avoid deeper cuts.

2nd Assembly District candidates have differing views on education funding

2008-10-26T15:03:00.001-05:00

In Wisconsin’s 2nd Assembly District candidates differ on school funding, candidates share their views on the school funding formula and revenue caps:

"What is the appropriate formula for funding school districts and should revenue caps remain in place?"

Frank Lasee, R-Bellevue:

The current mix of general state taxes paying for two-thirds of the cost of our schools and the other third being paid by the local taxpayer is fair and should be maintained. It allows for property tax relief and for some level of local input and control. Most of the schools in this area are getting about two-thirds state funding, some a bit more.

There are some that are proposing an increase in sales taxes to lower property taxes and spend more on our schools. On a statewide average, we spend $11,500 per student. Perhaps, if this tax shift wasn't just a way to increase the tax burden on all us, it could be considered. This is simply a way to reach deeper into the taxpayers' pockets, and something that I oppose.

It also will take away even more local input and control. Whoever provides all the money, or the vast majority of it, will make all the rules. Over time, there will be a one-size-fits-all mentality that will not recognize or allow for local efforts and local differences. This is not to the benefit of our students in the long run.

I support the continuation of the revenue controls, because it gives local taxpayers a say over major spending proposals and keeps our schools on a reasonable budget. The referendum process requires school officials to make a case for and explain their reasons for the additional spending and the increased taxes to pay for it...

Ted Zigmunt, Manitowoc County Board of Supervisors and president of the village of Francis Creek:

The state's current school funding formula, along with revenue caps, is causing many Wisconsin school districts to experience severe financial problems. The lack of adequate funding is causing districts to turn to tax referenda, the possibility of merging school districts or even shutting down completely.

No matter what school district children are born in, all should have an equal opportunity for a quality education. That is not happening now. It is my understanding that each district's per-pupil budget is based on the level of spending when the formula was set in 1992. Many things have changed since that time.

Costs have risen across the board, hurting the districts that were controlling their spending in the early years of the formula. Especially in areas with declining enrollment, districts are finding it harder and harder to find the money needed to educate our children and grandchildren...

Declining property valuations = higher mill rates in River Falls

2008-10-26T14:53:00.003-05:00

In School enrollment dips, could spell trouble later, Phil Pfuehler explains how declining property valuations have caused higher mill rates in River Falls:

High school enrollment went from 987 to 985; Meyer Middle School, from 671 to 653; Westside Elementary, from 414 to 408; Greenwood Elementary, from 365 to 361; and the Renaissance Academy, from 60 to 46.

At Monday night’s regular meeting, the school board set the new tax levy at $16,289,045, or 0.7% increase over last year.

However, because property values in the school district rose 4.5% — higher than the modest 2% estimated this summer — the mill rate will drop 3.6% (instead of a projected 1.5%) from last year. The new mill rate is $8.46 per $1,000 worth of property.

While a declining mill rate is generally good news, the school portion of individual property taxes will vary, depending on how property values stand in the city and surrounding towns.

Smurawa said many Wisconsin school districts have declining property valuations that have caused higher mill rates.

3rd Assembly District candidates weigh in on education funding

2008-10-26T14:53:00.001-05:00

In 3rd Assembly candidate questionnaires, candidates share their ideas for school funding...

"Should the Legislature do something to change how K-12 schools are funded?"

Al Ott (R-incumbent):

While it has become evident that changes to our school funding system may be necessary, we need to be cautious not to simply shift the burden from one tax to another. It's vital to balance the need to provide our children a quality education with the taxpayers' ability to fund public education. I support the creation of a task force to convene the stakeholders on this issue with the goal of finding an acceptable, workable and affordable school funding policy. Revamping the system must be a cooperative effort involving taxpayers, educators, administrators, business leaders and others.

Justin Krueger (D):

The United States pays more per child for education than any other nation. However, we are not at the top when it comes to student achievement. I have talked to many teachers and they have told me of a need to embrace a "family first" mentality. They have said that moms and dads should be more actively involved in their children's education. It's difficult to get involved when moms and dads are working long hours to pay for food, housing and health care. We need to be innovative and competitive with our funding for the K-12 schools. I am for school vouchers for families that put education first.

80th Assembly District candidates both support school finance reform

2008-10-26T14:37:00.002-05:00

In 80th candidates talk education and the economy, Gina Duwe lays out the education platforms of both candidates:

Incumbant, Brett Davis (R-Oregon), serves as the chairman of the Assembly Committee on Education and is proposing a K-12 finance reform plan.

Davis proposes relying less on property taxes by diversifying funding sources such as including sales tax revenues, and he proposes aligning revenue caps with the qualified economic offer for teacher contracts. Changes would be approved through regional referendums, he said.

John Waelti (D-Monroe), "would bring a lifetime of varied experience to the office instead of a career politician."

Waelti said he wants the funding formula “reviewed, revised and reformed” to make sure adequate revenue is going into public education.

Waelti said stakeholders need to be involved so areas of disagreement are ironed out.

Waelti said he would support public education funding because that can be a tempting cut during budget shortfalls.

How decresed enrollment affects schools

2008-10-26T14:28:00.002-05:00

In Elmbrook enrollment down by 103 students, Isral Debruin explains how decreased enrollment affects school funding:

Elmbrook School District enrollment is down 1.3 percent, but officials say the drop was anticipated and won’t affect state funding until next year.

Superintendent Matt Gibson said the decrease was on track with projections. He believes a decrease in the birth rate and slowdown in the housing market have contributed to the decrease in students.

The state exempts districts from fluctuations in enrollment for one year.

Next year, though, the drop will be included in a three-year rolling average that is used to calculate funding for the district. This average figures into Elmbrook’s total revenue cap, the amount it is allowed to collect in aid and taxes.

As such, a drop in enrollment can mean less state aid and higher taxes to make up the difference.

"Just the Facts"

2008-10-26T14:16:00.002-05:00

In Sergeant Joe Friday’s take on the school referendum, Terry Fondow, Principal of Rhinelander High School, gives "just the facts" to some very controversial issues surrounding the school referendum in Rhinelander:

Statement: Will all the spoiled people drive me out of my home? Teach our children to work for extras and to be content with what we do have.

Just the facts: The apparent meaning of the statement above is that there are “spoiled people” who want “extras” for their children that will cause increases in the property tax that will drive someone out of their home.

The simple truth is that passage of the referendum will not cause an increase in property taxes. If property taxes go up next year, which they probably will, it will be because the State of Wisconsin has decided to remove more school aid based on property values.

The Rhinelander area has very high property values due to the amount of water frontage property available in this area. Higher property values equal higher property tax rates. There is nothing in the referendum that will directly increase property values.

Will the Tomah School Board approve the tax levy?

2008-10-14T11:44:00.001-05:00

Steve Rundio reports in School levy before board, that it depends on the amount of equalization aid the district is expected to receive and those numbers might not be available when the board meets. The board has until October 31 to certify the 2008-2009 tax levy and pass the budget.

MPS offers generous fringe benefits

2008-10-13T16:23:00.001-05:00

In "MPS offers uniquely generous fringe benefits," Alan J. Borsuk reports that Segal Co., a New York based consulting firm found unprecedented levels of fringe benefits offered to employees of MPS. For instance, full health insurance benefits are offered to anyone who works 20+ hours a week and employees who retire at 55 are provided the same health insurance as active employees. Conflicting views weigh in:

Michael Bonds, chairman of the board’s finance committee: “I don’t think MPS can sustain itself with the magnitude of benefits it’s providing.”

Tom Morgan, executive director of the Milwaukee Teachers’ Education Association: Teachers and other employees agreed at several points in recent decades to sacrifice wage increases in favor of better fringe benefits.

Political perspectives on school funding policies from the 88th Assembly District candidates

2008-10-13T16:21:00.000-05:00

As politicians gear up for the upcoming election, the Green Bay Press-Gazette is asking candidates for Wisconsin's 88th Assembly District to address some of the most pressing issues facing Wisconsin legislators. One of those issues, of course, is the state's school funding policies.

Q: "What is your position regarding possible changes to the state’s school funding policies and formulas?"

Republican challenger, Tony Theisen: A strong economy hinges on a strong public education system. For this reason, state aid to local school districts should remain the state’s top budgetary priority. Any changes to the funding policies and formulas should be focused on providing a quality education for all students while also protecting property taxpayers. We should be directing more money to the classroom and rewarding good teachers for their efforts.

State Rep. Jim Soletski, D-Green Bay: School funding has been a shaky three-legged stool since its inception in the early 1990s. Health care costs have eroded teacher salaries and stripped money from school systems. The mechanism can’t be tinkered with because it was put together like a Chinese puzzle that all comes apart when one piece is removed. We need a dramatic change, and we need it quick. It is also expensive. Estimates to make this dramatic overhaul have been about $2 billion over two years. Not doing anything costs us in loss of qualified teachers, administrators and a poorly educated work force.

Schools districts are feeling the pinch of the global economic meltdown

2008-10-13T16:02:00.002-05:00

In "Cities can’t avoid global credit crunch", Samantha Marcus discusses the effect of the current economic crisis on school districts in Wisconsin.

School districts routinely sell short-term bonds to smooth out the peaks and valleys of cash flow to meet payroll and other bills as they await state aid.

Cities and schools will sell long-term notes for facilities and infrastructure, and they borrow long term to spread the cost over a full generation of users.

Municipal bond sales are like loans, but instead local governments borrow money from investors on the open market.

As a result of the budget crunch, cities are not getting bids and sales are being postponed until the market improves or until the market is more liquid.

The hardest hit has fallen on the short-term credit market and school districts have historically relied on short-term borrowing to pay their monthly expenses until they receive their state aid.

Once money is flowing again and banks are willing to lend money to one another, the municipal bond market should be the first to rebound.

Political perspectives on school funding policies from the 2nd Assembly District candidates

2008-10-13T15:45:00.006-05:00

Political perspectives on school funding policies from the 2nd Assembly District candidates

As politicians gear up for the upcoming election, the Green Bay Press-Gazette is asking candidates for Wisconsin's 2nd Assembly District to address some of the most pressing issues facing Wisconsin legislators. One of those issues, of course, is the state's school funding policies.

Q: "What is your position regarding possible changes to the state’s school funding policies and formulas?"

Rep. Frank Lasee, R-Bellevue: The current mix of general state taxes paying for two-thirds of our schools and the other third paid by the local taxpayer is fair and should be maintained. It allows for property tax relief and for some level of local input and control. Most of our area schools are getting about two-thirds state funding now, some a bit more. I support continuation of the revenue controls that give local taxpayers a say over major spending proposals and keeps our schools on a reasonable budget. It has helped keep taxes down over time and allowed a reasonable growth in school spending.

Democratic challenger, Ted Zigmunt: I believe school fund formulas need to be changed to help schools with declining student enrollment, and the Legislature needs to start this discussion in 2009. I am not sure any new plans will be enacted until the state’s economy starts to improve. I favor abolishing the QEO (Qualified Economic Offer); this would give employees of the school district and the communities the option to bargain between themselves to develop benefit packages. We need to get school officials and educators involved in these discussions so that all school districts succeed. We also need to educate the public about school funding

The Politics of School Finance Reform

2008-10-08T09:02:00.008-05:00

Joe Handrick, a Minocqua town chairman and member of the Lakeland Union High School Board of Education, wrote an article for The Lakeland Times yesterday with an overview of school finance in Wisconsin, with a particular focus on property rich districts in the north. Handrick's article, "School Funding Formula: Don't believe those who say there's an easy fix" included an informative question and answer section to address the most obvious bullet points brought up during school finance debates. In the end, Handrick boils the argument down to politics:

If you want the QEO and the revenue caps eliminated, you need to hope for total Democrat control in Madison. If you get what you hope for, however, then there will be no chance of getting more school aid for our property-rich districts. More aid for our property-rich schools is only possible with Republican control.

If your primary goal is to get more aid to our property-rich districts then you need to hope for total Republican control in Madison. If you get what you hope for, however, then there is no chance of elimination of the revenue caps and QEO which means school boards will continue to need to seek referenda.

Madison School Referendum

2008-10-06T08:42:00.004-05:00

Because of its severe financial problems, the Madison School District will be holding a referendum on November 4. School Board member Arlene Silvera is circulating the following e-mail describing the referendum:
Hi all,
Last month, the Madison Metropolitan School District Board of Education voted unanimously to put a question to the voters on November 4 to exceed the state-imposed revenue limits in the form of a 3 year recurring referendum. Information on the referendum is being overshadowed by the presidential election so I wanted to make you had information and the opportunity to ask questions.
Due to a broken state-funding system, the District faces budget gaps of $8.1M in 09-10, $4.4M in 10-11 and $4.3M in 11-12. After making over $60M in cuts since 1993, further reductions at these levels would negatively affect every child in our school district. These are the amounts the budget would have to be reduced if a referendum does not pass.However, the decision to go to referendum is never an easy one as we balance both the needs of our children and our community. The Partnership Plan, proposed by our new Superintendent Dan Nerad, does a good job at achieving that balance through shared responsibility for addressing the budget gap. Part of the gap would be filled through an approved referendum while the other part of the gap would come from the District continuing to make cuts, find efficiencies and lessen the tax impact through budgetary changes. Two changes in how we use our funds will be implemented over the next school year that will help to mitigate=2 0the tax impact of the referendum. This is explained below.
The Question
The amount to exceed the revenue limit would be:
$5M in 09-10 (note the gap is $8.1M. The District will be responsible for the other $3.1M)
An additional $4M in the 10-11 year for a total of $9M
An additional $4M in the 11-12 year for a total of $13M
It’s a recurring referendum which means that, if approved, the school district could exceed the revenue limit by $13M in the 11-12 year and in every year after that.
Tax Impact
1. The projected tax impact on the average Madison home (valued at $250,000) will be:
a. An increase of $27.50 in 09-10
b. In 10-11, an increase of $43.10 over the previous year for a total of $76.40
c. In 11-12, an increase of $20.90 o ver the previous year, for a total of $91.50
The cumulative total increase over the 3 years is $189.60.
Tax Rate
1. The district is taking other actions to lower the amount of tax dollars needed. The tax rate if the referendum passes (the property tax paid per $1,000 of assessed value) is projected to go:
a. Up 1.1% in 09-10 (from $9.92 to $10.03, or 11 cents)
b. Down 2.1% in 10-11 (from $10.03 to $9.81, or 22 cents)
c. Down 3.0% in 11-12 (from $9.81 to $9.51, or 30 cents)

I want you to know that this is part of a larger vision that the Board and Superintendent have for our schools and community. We are committed to initiating a community-wide strategic planning process this year. Outcomes will be used to make staffing, programmatic and budgeting decisions. We are looking at new models of Board-Superintendent governance based on models implemented in high achieving school districts. In all we are doing, community engagement is essential. We are working in synch to focus on student achievement.
This is not "business as usual" in the MMSD. This truly is a Partnership Plan. A successful referendum stabilizes our foundation. It gives us the time we need, with your input, to determine what we value in public education and what our children need to become responsible, successful citizens wherever their path may lead them in the 21st century.
More information on the referendum is available at www.mmsd.org/mmsdtv/refweb/
If You Want to Help
If you would like a yard sign, would like to host a coffee or would like to lit drop in support of the referendum, please let me know.
If you have any questions or would like more information, please do not hesitate to contact me.
Arlene Silveira

Why the school funding problem?

2008-10-04T19:33:00.002-05:00

There's an article in the Fall 2008 edition of the Lafollette Policy Report that everyone with an interest in school funding should read. It's by Professor Andrew Reschovsky.

Dr. Reschovsky describes the heart of the problem very well. He writes:

"More resources are needed to
achieve improvements in the education performance
of children from poor families, students with disabilities,
and students who enter school with limited English
proficiency. Because of economies of scale, costs
per student are higher than average in small school districts.
In many cases, especially in northern Wisconsin,
the consolidation of schools and school districts is infeasible
because it would require extraordinarily long
bus rides for many students. Finally, to hire teachers of
comparable quality, some school districts must pay
higher than average salaries to compensate for the
higher costs of living in some areas of the state."

The challenge we all face is how to address this in a time of economic hardship for the state. Our need for well-educated people is greater than ever--but we're unlikely to have additional money to put into education. This will call for new, creative approaches to achieving our goals.

Dr. Reschovsky's article can be found at http://www.lafollette.wisc.edu/publications/policyreports/policyreport18_1.pdf

Is MPS serious about dissolving the district?

2008-09-22T08:37:00.000-05:00

In "MPS to explore dissolving district," Alan J. Borsuk reported that the Milwaukee School Board voted 6-3 Thursday evening to explore dissolving the Milwaukee Public School district (MPS).

This came after Superintendent William Andrekopoulos delivered a grim assessment of district finances.

'The state finance system to fund Milwaukee Public Schools is broken' ... even with no increase in spending for the current school year, the property tax levy to support schools would go up 9.8% because of a decrease in state aid to MPS.

Like many districts across Wisconsin, costs and demands continue to rise while districts face increasing budget cuts due to declining enrollment and less state funding, among other things.

'In a speech Thursday in Madison on the state of education in Wisconsin, Superintendent of Public Instruction Elizabeth Burmaster said, “Public education in Wisconsin has been stretched to the limit” and more needs to be invested in education if Wisconsin is to be competitive economically.'

The strength of community ties

2008-09-05T14:05:00.003-05:00

Congratulations to Superintendent Nerad, as he moves to Madison. His move has not been greeted with the rancor that often accompanies tax raises, which is a pleasant development as the city moves to balance its budget.

When does the public get interested?

2008-09-05T14:00:00.003-05:00

By training, I study politics and government. A key question, and one addressed here at New Public Square, is when people get involved in the policy making process. This story details the budget agreement made by the Onalaska school district (and no small feat there...see below).

The quote that struck me, though, was

"The budget was approved after a public hearing in which no one asked to speak, and for that matter, no one from the general public attended."

Are people happy with their system, or too busy to attended, or unsure as to whether or how they can make a difference?

Why stop at real estate?

2008-08-21T17:45:00.003-05:00

The financial meltdown is apparently not just providing all sorts of fun for property owners, but school districts appear to be in on the mix.

"...The value of district investments has declined by $120 million - or 60% - since the transactions were undertaken within the last two years, according to a news release from a public relations firm for the attorneys who examined the deals...

The five districts made the investments in 2006 using borrowed money and, in some cases, district assets to help seed trusts they established to borrow more money to funnel into the CDOs. According to Wednesday's news release, the deals also involved a credit default swap, another fairly recent financial vehicle designed to transfer risk from one investing party to another...."

You can find an earlier report on this here.

There seem to be statutes expressly covering investments that can be made by the school boards with bond moneys, but, after a (non-exhaustive) reading, I could find no similar language on retirement funds.

The districts were not the only ones misled in this fiasco, so they are not the only ones demanding compensation. This will surely shrink the size of the pie available for public instruction.

School busing cuts

2008-08-20T16:27:00.003-05:00

Transportation cuts can help balance budgets, but at a cost to parents:

"A plan to reduce busing at the high school level stalled in a meeting of the Milwaukee School Board’s finance committee Tuesday...the version presented Tuesday was the first to reduce transportation to citywide schools offering specialty programs such as International Baccalaureate, language immersion and art...

Students who opt for a school outside their attendance area would have to pay to get themselves there on county transit.

Morales said she anticipated Milwaukee residents who lacked reliable private transportation and those with children in multiple schools would struggle as a result of the change.

The change would save MPS roughly $1 million by its full implementation in the 2011-12 academic year."

Madison looks to permanently exceed revenue limits

2008-08-19T17:46:00.007-05:00

Today the Wisconsin State Journal ran the article, Vote on tax for Madison schools considered, in which Andy Hall explains the referendum that will appear on the November 4 ballot for Madison voters. The Madison School District could gain a permanent $13 million if voters support the referendum. Hall suggests this will cost taxpayers with an assessed property value of $250,000 about $27.50 more per year. Madison Superintendent Daniel Nerad, is proposing that this referendum come with "accounting measures". Does that mean accountability?

Just by reading the comments on the forum, it is clear that this is a very heated debate.

The School Board will vote on the proposed referendum Monday August 25 at 5:00 PM - 545 W. Dayton St. Comments will be heard.

Comments can also be e-mailed to the board at comments@madison.k12.wi.us.

For up-to-date information, check the district's Web site, www.mmsd.org.

Welcome to the New Public Square School Funding Blog!

2008-08-17T20:30:00.001-05:00

This blog is your opportunity to participate in a statewide conversation on Wisconsin school funding. We invite you to share your insights, concerns and suggestions—and to respond to others who contribute to the blog.
Through on-line dialogue, we can learn from each other and—together—work to resolve Wisconsin’s school funding issues.
Please sign up for the blog and join the conversation!

--Gail Nordheim , President, New Public Square

Wisconsin School Funding Project

2008-08-10T20:46:00.000-05:00

Welcome to the Wisconsin School Funding Project sponsored by New Public Square. We are dedicated to engaging you, the taxpayers, in an online dialogue about school funding in our state.

Our purpose is to:

1. Facilitate learning and discourse via web technology.
2. Assist residents and policy makers in creating solutions that will benefit all Wisconsin residents.

About New Public Square

New Public Square is a non-profit organization seeking to increase public understanding, dialogue and participation in public policy issues. We are using the Internet and computer gaming technology to educate and engage you, the citizens of Wisconsin. We seek to motivate you to work together to find solutions to common concerns and to communicate with elected representatives about the need for policy change .

Many people are concerned about significant public policy issues but have not become involved in efforts to resolve those issues, either because of the perceived complexity of the issues, the time required to participate through conventional means such as attending public hearings or volunteering in political campaigns, or skepticism about the potential for "ordinary people" to impact the debate. New Public Square seeks to engage people in public policy development, using technology to make key information readily accessible, to promote consideration of alternative solutions, and to facilitate communications.

As the first application of our model, we are focusing on Wisconsin 's K-12 public school funding issues through the "Wisconsin School Funding Project."