Category Archives: “education finance”

by Thomas J. Mertz | July 20, 2009 · 11:00 am

Before the Teachers Get the Blame

The Wausau Daily Herald has a story up entitled “Removal of state cap on teacher salaries expected to increase taxes.” The removal of the QEO without comprehensive school funding reform was a bad idea, but it is much too early to tell what the post-QEO contracts look like and whether they will contribute to property tax increases.

No matter if the post QEO settlements are more than 3.8% or less than 3.8%, it isn’t too early to tell that there will be property tax increases.

Besides forcing greater than usual programing cuts on school districts, the recently passed Wisconsin budget accelerated the shift in education funding to property taxes. With all the last minute, behind closed doors changes, I’ve been having trouble getting numbers I’m confident of, but the state funding according to the old formula used to arrive at the old 2/3 guarantee will be in the 61% to 62% range this biennium. If you take out the levy credits – money that never goes near a school — the level of state funding looks to be about 50%.

Madison — with no new teacher contract at this time — will have to use $9 million more in local monies simply to cut $3 million from the programs included in the balanced budget passed in May (or use the Fund balance or re-budget, this $3 million cannot be made up by property taxes under the revenue caps). $3 million in cuts and $9 million in revenues needed and none of this involves the QEO repeal. If all the $9 million is shifted to property tax payers, it would lead to about a 54¢ mil rate increase, or about $135 on a $250,000 home. None of this has anything to do with the QEO repeal.

Actually, that’s not quite true, they are related because the same people are responsible. The QEO repeal, the shift in education funding to property taxes, the mandated program cuts, the unwillingness to move on comprehensive school funding reform, the betrayal of the Wisconsin Promise of “A Quality Education for Every Child,” are all examples of the kind of “leadership” Wisconsin has, the sad state of of the Governor’s office, the Assembly and the State Senate.

When property taxes go up, put the blame and the pressure where it belongs; give Governor Doyle and your representatives the message.

Thomas J. Mertz

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by Thomas J. Mertz | July 15, 2009 · 6:38 pm

Senator Miller Gets One Thing Right

Senator Mark Miller (D-Monona) issued a statement giving his spin on education funding in the recently passed Wisconsin budget. It is a confusing statement, in that Miller seems to all but ignore the continued shift in funding from the state to local property taxpayers (the old 2/3 formula is long gone, we are now struggling to stay above 60% and if the levy credit is treated as what it is — property tax relief — the real level of state support is hovering a little above 50%) to concentrate on the last minute, behind closed doors insertion that was intended to limit the cuts in state aid to any school districts to 10% or less (Quadric Aid anyone?).

Things didn’t work out as planned, resulting in some 100 districts (including MMSD) taking hits of 15% (see this editorial from the Appleton Post Crescent for more). As far as I can tell the $4,519 in lost aid to MMSD that Senator Miller refers to is the portion of the loss due to the 10%/Quadric Aid legislation. In total MMSD is experiencing a $9 million shift in funding that must be filled by local resources.

I hope to have a chance to write more about Senator Miller’s figures and other budget numbers soon.

For now I want to point to one thing that Senator Miller is correct about. Here is the quote:

These large cuts are primarily a function of the school aid formula…

I’d add that they are also a function of the reduction in education investments and shifts to local property taxes, but all that can be broadly considered part of the “school aid formula.”

The good news is that Senator Miller as a co-sponsor of the Pope-Roberts/Breske Resolution is on record saying that Wisconsin’s school funding system needs to be changed and that it should have:

1. Funding levels based on the actual cost of what is needed to provide children with a sound education and to operate effective schools and classrooms rather than based on arbitrary per pupil spending levels;

2. State resources sufficient to satisfy state and federal mandates and to prepare all children, regardless of their circumstances, for citizenship and for post−secondary education, employment, or service to their country;

3. Additional resources and flexibility sufficient to meet special circumstances, including student circumstances such as non−English speaking students and students from low−income households, and district circumstances such as large geographic size, low population density, low family income, and significant changes in enrollment;

4. A combination of state funds and a reduced level of local property taxes, derived and distributed in a manner that treats all taxpayers equitably regardless of local property wealth and income;

The current funding system is inadequate in all these areas and the recent budget moved us in the wrong direction on all of these.

Time to get to work.

All of us can point the finger at the “school aid formula,” but only Senator Miller and his colleagues in the Senate and the Assembly have the power to change it.

Remind them, please.

Thomas J. Mertz

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by Thomas J. Mertz | July 15, 2009 · 12:07 pm

Statement from CAST on the MMSD Budget

The school referendum approved overwhelmingly by Madison Metropolitan School District voters in November 2008 was based on a “Partnership Plan” that promised to maintain educational quality, initiate a community-wide strategic planning process, and mitigate the impact on property tax-payers in a variety of ways.

While the school district remains committed to the principles of this Partnership Plan, with the uncertain economy many things have changed since November. Most significantly, the recently enacted state budget has left MMSD facing what now looks like a $9 million reduction in state aid as well as requiring an almost $3 million reduction in expenditures for the 2009-10 school year.

As the MMSD Board of Education seeks ways to address the shortfalls created by the state budget, Community and Schools Together (CAST) believes it is important that the community recognize that this problem was created by state officials, not local decisions. The reductions in revenues and in funding for targeted programs (via categorical aids) will impact every district in the state. Madison is one of about 100 districts that have had their general state aid cut by 15%, but almost all districts are experiencing significant reductions in state support and will be contemplating higher than anticipated property tax increases.

These cuts come after 16 years of inadequate funding, annual cuts in most districts as well as reductions of the state’s portion of education costs in recent years. This recent state budget moves us further away from the sustainable, equitable and adequate educational investments that are needed to keep Madison and Wisconsin strong and competitive.

It is also important that the community understand that the tax and revenue projections in the Partnership Plan and those used in the preliminary district budget passed in May were good projections made in good faith based on the best available information. That preliminary budget strengthened education and held property tax mil rate increase to 1¢ (far below the 11¢ increase anticipated prior to the referendum).

In the coming months the Board of Education must find ways to meet the shortfalls created by the state budget. There are no good choices.

These choices involve some combination re-budgeting and re-allocating, potential new cuts, use of the district’s recently growing fund balance, temporarily employing targeted stimulus monies, or increasing the local tax levy. CAST urges the Board to retain their commitment to quality education and community involvement. We also ask the community to take advantage of opportunities to let all our state and local elected officials know that Madison values education.

###

Community and Schools Together (CAST) is a grass roots organization dedicated to securing sustainable, adequate and equitable public education investments in Madison and Wisconsin.

Click here for a PDF version of this statement.

Thomas J. Mertz

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by Thomas J. Mertz | June 30, 2009 · 6:10 pm

Truth and Spin (Quotes of the Day)

The three-legged stool is now down to one leg.

Will that leave either schools or taxpayers wobbly? Will the last leg fall, too?

In any case, Wisconsin’s old order for how to fund schools is coming to an end, and what comes next remains to be decided, perhaps two years from now when the next state budget is adopted. Pressure for an overhaul is growing, even as economic realities are providing strong pressure to hold down budgets.

“School funding getting precarious” Alan J. Borsuk and Amy Hetzner, Milwaukee Journal Sentinel

Now the spin:

With this budget package, Democrats have strengthened K-12…education.

Democratic Party of Wisconsin (DPW) Chair Mike Tate.

Since this was in a press release, there is no report whether Tate managed to keep a straight face while forming these words.

Thomas J. Mertz

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by Thomas J. Mertz | June 26, 2009 · 6:40 pm

The World Turned Upside Down

Much to say and analyze as the Wisconsin state budget moves into this final (and public for a change) phase, but little or no time right now. Stay tuned and follow the developments on the WisPolitics Budget Blog.

For now I just want to quote the introduction to the memo issued by Rep. Mark Pocan. Rep. Mary Hubler and Speaker Mike Sheridan “defending” the product of their closed door deals and note that things seem to have shifted 180 degrees when Democrats begin by boasting about how much they have cut in essential government services.

Deepest spending cuts in Wisconsin history.

Contains more than $3 billion in spending cuts – the deepest in Wisconsin history.

Features 2.5% or $718.7 million in cuts in spending of state tax dollars. Assembly Republicans increased spending of state tax money by 74% during their 14-year majority.

Implements 6.1% across-the-board agency spending cuts.

GOP claims that the budget increases spending by as much as 6.8% are bogus.The figure is a distortion caused by the one-time influx of federal stimulus dollars. These dollars are being used to repair our roads, train our workers and fix our schools, but they are being disbursed through state agencies and departments, making it appear as though state spending is up when it really isn’t.

Democrats lead by example and shared the sacrifice: The Legislature moved early to cut $500,000 from its operating budget. When the deficit intensified in May due to the national economic crisis, the Assembly made more cuts, bringing the total amount slashed to $1.4 million – for a 6% total reduction.

State legislators voluntarily froze pay until 2011, and implemented furloughs of State employees.

Strange and disturbing times.

I can’t help but think of Howard Dean’s phrase “I belong to the Democratic wing of the Democratic Party.” It is feeling like a lonely place in Wisconsin right now.

Thomas J. Mertz

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by Thomas J. Mertz | June 25, 2009 · 11:09 am

The Wrong Direction – Quotes of the Day

“I’m certainly concerned from the perspective that we passed a referendum in Madison that I think was predicated on the state doing its share,” says Matt Calvert, whose children will attend O’Keeffe Middle School and Marquette Elementary this fall. “Until we have financial reform, something that will keep up with needs, it seems like now things are going the other direction.”

…[TJ] Mertz believes this budget, regardless of its final form, “moves us further from what the goals of that reform should be in a number of ways.” And he believes impending cuts will mean tough times for school districts across the state.

From Lynn Welch, “Madison schools brace for state budget,” in the Isthmus

(OK, I know it isn’t the best thing to use yourself as a source for a “Quote of the Day, ” but I liked the way what Matt and I were saying fit together. read the whole story.)

Thomas J. Mertz

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by Thomas J. Mertz | June 17, 2009 · 10:02 am

Walk on the Child’s Side — Reports and Thank Yous

From WKOW-TV, Madison

From Wisc-TV, Madison

Video of the full rally from WisconsinEye here.

Thank you to all who supported, organized and participated. It was a good crowd and great to see old and new friends and allies from Madison and around the state.

As more than one of the speakers noted, the work must continue. Some of the people there have been fighting the good fight for over a decade, but progress has been slow.

I saw many children there (including my own) and their futures can’t wait. The effort to move Wisconsin to a system of adequate and sustainable investment in education needs more people doing more (one friend noted that everyone we need was there, but not in the numbers we need). The pressure on our state leaders has to be constant.

Become part of this effort by signing on with the Wisconsin Alliance for Excellent Schools and the School Finance Network.

More to come.

Thomas J. Mertz

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by Thomas J. Mertz | June 12, 2009 · 9:40 am

SFN Supports the Walk on the Child’s Side

Click image for pdf to print (thanks to Norm Littlejohn/Progressive Dane)

The School Finance Network announced their support for the Walk on the Child’s Side 10th Anniversary events. The full press release is linked here. Here is a short excerpt:

A decade after the first Walk on the Child’s Side and 15 years after the state’s school-funding system was passed into law, the problems continue. Today, the funding crisis Wisconsin’s children and public schools face is worse than ever. It is time to make a change. Join us on June 16th and help support a better education for Wisconsin’s children.

“SFN members understand the state of the economy,” said Bob Borch, assistant superintendent of finance with the Elmbrook School District and spokesperson for the nine-member network. “We also know that for the last 15 years school districts throughout Wisconsin have been forced to lay off staff, increase class sizes, and make cuts to programs and services because of the state’s school-funding system.”

“Good times or bad, nothing has been done to change the system and head off the crisis,” Borch said. “Now the education and the futures of children all over the state are in jeopardy.”

Borch said the SFN not only endorses the Walk on the Child’s Side but encourages its partners and their members to be in Madison, June 16.

WHO: Wisconsin education advocates

WHAT: Walk on the Child’s Side’s 10th Anniversary Reunion Tour

WHEN: June 16, 2009, 11:00 a.m.

WHERE: The walk will begin at 11:00 a.m. at the University of Wisconsin-Madison Library Mall, on the 700 block of State Street. The walk will continue up State Street to the Capitol. A rally will be held on the steps of the Capitol at 12:00 noon.

The Madison Metropolitan School District also passed a resolution in support earlier this week.

If you don’t think this message needs to get through, check this statement by Governor Jim Doyle yesterday: “”They’re probably going to be pretty small,” Doyle said of the budget’s final cuts to schools.”

Thomas J. Mertz