Daily Archives: September 4, 2009

Right and Wrong — MMSD Board Members on School Finance, State and Local

I had not recently thought about what was said by Madison Metropolitan Board of Education members as they passed their initial budget in May, but the happenings in Washburn brought them to mind and reminded me that the struggle to recognize that investments in education are a state responsibility requiring a state solution isn’t over in Madison.

As we now know the state budget produced multiple financial problems for MMSD (we know this, but you wouldn’t know it by going to the MMSD budget page or the news releases, or the “recently in the news” — they missed this from Board President Arlene Silviera and everything else that has happened since January).  As a result, the entire Board of Education has been in one way or another looking to the state for long and short term help.

Back in May, that was not the case.  One member got things right; most were too happy with what then seemed like a positive budget to bring up the long term state issues; one got things wrong in an offensive and dangerous manner

Johnny Winston Jr. is the one who got it right.

He revealed the truth, school finance is a state and federal problem and requires at the very least a state solution. Recent developments at the state finance level have moved us further from that solution.

For a variety of reasons (listed below), until the latest state budget Madison had enjoyed relatively painless budgeting in the most recent years. At the same time, the state school funding system remains broken, any of the varied nips and tucks that have been made at the local level have only provided limited relief, they’ve only been partial remediations – and temporary. The real fix has to come at the state level, it must be comprehensive and it must be sustainable.

Lucy Mathiak is the one who got it wrong.

In addition to her misguided championing of local solutions to a state created problem (see here for MMSD’s official and correct position), Mathiak mostly misidentified and wrongly interpreted the main factors that contributed to the recent lack of major harmful budget cuts in Madison.

Here is my list, in approximate order of importance:

  • Tax Incremental Finance District closure windfall (over $5.4 million).
  • Successful Operating Referendum, ($5 million for 2009-10).
  • Confused and overzealous fiscal conservatism in the 2007-8 budget (scroll down), resulting in a $4.3 million general fund surplus (added to the Fund Balance).  Astute readers will remember that the 2007-8 fiscal year was the year that MMSD was a rough budget season and that schools were almost closed and many harmful cuts were made (in my opinion, the two biggest factors in this surplus were underestimates for state special education funding and local salary savings, see more here).
  • A new management team. Superintendent Dan Nerad and Asst. Superintendent Erik Kass have brought new eyes to the budgeting process and found some savings and efficiencies. However, as their experiences in Green Bay and Waukesha demonstrate, there are serious limits to what any management team can do to stave off harmful cuts.
  • Losing students to open enrollment. This made FTE cuts less painful for the 2009-10 budget. The benefits of this are limited and only work when efficiencies of size are present, but because the structural gap in the state finance system is based on per pupil funding, fewer pupils means a smaller gap.

Right and wrong, partial and temporary, these factors are all about played out. The party is over and the bills must be paid.

As Asst. Superintendent Erik Kass said, 2010-11 is looking “ugly,” and I’ll add that this ugliness has nothing to do with mythical local mismanagement (in fact the recent surpluses and the harm caused by the cuts and conflicts that created those surpluses reveal that the very Board members Mathiak praises had pushed the district too far on issues of  budgeting and were the ones closest to mismanaging) and the solution will not be found via equally mythical miraculous local administration and governance.

The new state budget has brought back to MMSD the hard choices needed to make the cuts that do the least harm and to find the fiscal strategies that can be sustained. The Title I and IDEA stimulus money will soften the blows, but that is yet another partial and temporary band-aid.

The self-serving myths Mathiak mouthed back in May are dangerous because they make it harder to convince people that school finance reform must be a priority.  I’m glad I remembered what she said, because these falsehoods must be countered at every opportunity.

Join the movement for real education funding reform.  Check out the School Finance Network; become a member of the Wisconsin Alliance for Excellent Schools.

If you do these things, you will be going a long way towards righting some very significant wrongs.

Thomas J. Mertz

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Filed under "education finance", Budget, education, finance, Gimme Some Truth, Local News, Referenda, referendum, School Finance, Take Action, Uncategorized

Happy Labor Day!

The Labor Day extravaganza starts with a lengthy excerpt from the1886 Platform of the Knights of Labor.  It is a good reminder that the sruggle has been going on for a long time.

Preamble

The alarming development and aggressiveness of great capitalists and corporations, unless checked, will inevitably lead to the pauperization and hopeless degradation of the toiling masses. It is imperative, if we desire to enjoy the full blessings of life, that a check be placed upon unjust accumulation, and the power for evil of aggregated wealth. This much-desired object can be accomplished only by the united efforts of those who obey the divine injunction, “In the sweat of thy face shalt thou eat bread.”

Therefore we have formed the Order of the Knights of Labor, for the purpose of organizing and directing the power of the industrial masses, not as a political party, for it is more — in it are crystalized sentiments and measures for the benefit of the whole people, but it should be borne in mind, when exercising the right of suffrage, that most of the objects herein set forth can only be obtained through legislation, and that it is the duty of all to assist in nominating and supporting with their votes only such candidates as will pledge their support to these measures, regardless of party. But no one shall, however, be compelled to vote with the majority, and calling upon all who believe in securing the greatest good to the greatest number, to join and assist us.

Declaration of Principles

We declare to the world that our aims are:

1. To make industrial and moral worth, not wealth, the true standard of individual and national greatness.

2. To secure to the worker the full enjoyment of the wealth they create, sufficient leisure in which to develop their intellectual, moral and social faculties; all of the benefits, recreation and pleasures of association; in a word, to enable them to share in the gains and honors of advancing civilization.

Next up is a reminder to attend the South Central Federation of Labor LaborFest, at the Labor Temple (Park and Wingra).  Lots of good people, activities for all ages, good food and drink and music from Mel Ford and Paul Cebar and the Milwaukeeans.  You can download a flier here.

While on the topic of reminders, the pending bill requiring that labor history be taught in Wisconsin schools could use your support. Find out more here and also check out the other great things that the Wisconsin Labor History Society has to offer.

Last, that labor classic “I’m Sticking with the Union” as performed by a stellar cast at Pete Seeger’s 90th Birthday concert.

Last year’s Labor Day post, with more music and history can be found here.

Thomas J. Mertz

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Filed under Blast from the Past, education, Local News, National News, Take Action

Sandbagged! Now Teabagged?

School districts and school finance reform advocates were sandbagged by Governor Jim Doyle and the Democratic controlled Legislature.  For years they had said “if you put us in control, fixing school finance will be a priority.’  We helped put them in control, districts built preliminary budgets based on the assumption that even if they wouldn’t enact a fix right away, they also wouldn’t make things worse.

But that is exactly what they did, make things worse.

They did this in many ways.  They cut the money targeted to the neediest students and districts via categorical aid.  They cut the amount of total revenue available to districts to well below “cost to continue.”  They upped the property tax credits, money that never goes near a classroom, and called it more money for education. They saddled school boards and districts with the unwelcome dual tasks of finding new savings and raising property taxes (for more on how this is playing out in Madison, see here and here).  Sandbagged.

Now — as districts are finalizing their budgets,  setting their tax levies and raising property taxes — the teabagger anti-tax crowd is coming out.  So far the only report I’ve seen is from Washburn, but more may well be on the way.

The Ashland Daily Press reports that   80-90 people showed up at the district budget listening session, many came to protest.  On August 18th, the Board of Education had passed a preliminary budget with what is being called a 24% tax increase in the local property tax contribution (I did the math and the mil rate will go up about 15%, not small, but not 24% either).  Like in Madison, there is a combination of a recent referendum, high property values, and most of all, the miserable state budget.  At the time the budget was passed District Superintendent Sue Masterson laid out the choices:

“We are not happy about it, but there is nothing we can do about it.”

… Masterson said cutting back to what would essentially leave “reading, writing and arithmetic” would be damaging to the community. She said that as part of the referendum process, many cuts had already been made and that the district had made as many cuts as they could without cutting the quality of instruction. She said that further cuts could result in dramatically larger class sizes and might require building changes that the district couldn’t afford in any event.

“The only way you cut now is putting 40 kids in a classroom, eliminating programs, which will result in an exodus of new families and existing families from local schools,” she said. “Consumer science programs, music programs, tech ed programs — when you start cutting those kinds of things… well, today’s public education families expect a rounded education,” Masterson said.

This hasn’t changed, but now the voices from the community are louder and more strident.  The Daily Press described the message from the September 1, 2009 listening session (let me note that MMSD has scheduled no listening sessions on their budget revisions):

One message came across loud and clear: The amount of the increase is unacceptable — and they expect the school board to go back to the budget and rework it so the increase is much closer to the 9 percent increase approved last November in a referendum allowing the district to exceed revenue caps. The tough economy makes a big tax increase especially difficult, many said.

…”The bottom line is we need to cut, and we need to keep Washburn houses filled with families.”

As is usual with these things, they were less forthcoming when asked for suggestions about what to cut and how to save:

Many at the meeting were unhappy they were being asked for suggestions for cuts when they didn’t have a line-item budget to look at for ideas, and others said the reason they hire an administrator and elect a school board is to make intelligent fiscal decisions on behalf of their constituents. Still, some suggestions were made.

Those included delaying improvements to the bleachers, cutting the food service program, and cutting administration costs by sharing an administrator with other school districts.

It is likely that there are some savings to be had, but after 16 years of struggling with annual cuts due to revenues that have been inadequate by design, the potential savings are minimal.

I have some sympathy with the people who are unhappy with the tax increase.  They are correct that too much of the investment in education is coming from property taxes.

I also have much admiration for the Board and administrators who are defending education as a valuable investment and have not yet given in to the anti-tax sentiment (contrast with Madison, where sometimes it is hard to tell the difference between the district and the anti-taxers).

The ones I have no use for are the those who say –as one attendee did — they are  “sick of hearing the excuse ‘the state did this to us.'”

This is both wrong — the state did do this to them — and counter productive, because  it cuts off productive protest directed at the state officials who actually have the power to make things better and electoral action directed to replace the ones who sandbagged us.  Getting mad at district officials over this makes no sense.

We’ve heard this sort of thing in Madison before (one sitting Board member still mouths these ridiculous ideas on occasion), but mostly the message that school funding is a state responsibility in need of a state solution has been heard.  This needs to happen all around the state.  Join the Wisconsin Alliance for Excellent Schools to help make that happen.

Thomas J. Mertz

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Filed under "education finance", Budget, education, Elections, finance, Local News, School Finance, Take Action, Uncategorized, We Are Not Alone