Category Archives: School Finance

All the News from WAES

Click on image for video of Tom Beebe of WAES discussing Penny for Kids on WisconsinEye's Newsmakers

Things have been busy with the Wisconsin Alliance for Excellent Schools (WAES) and the Penny for Kids campaign.  Time to catch up a little.

Click on the image at the top for a fine interview with WAES Executive Director (and lone employee) Tom Beebe.  It really explains what Penny for Kids is all about.

The Rural Caucus presented some proposals on school-funding this week.  They aren’t bad, but they aren’t anywhere near enough.  WAES issued a press release, mostly saying that.  Here is an excerpt.

Their package of ideas addresses very real problems. For 15 years, schools and children have been subjected to an unsustainable school funding formula and now they are actually facing drastic cuts in state funding. As a result of this crisis, many schools are cutting personnel, services, and programs, others are fighting just to keep their doors open, and property taxpayers are being overburdened.

So while I applaud the Rural Caucus for their efforts, their proposal falls far short of what our children, schools, and communities need.The ideas forwarded by the Rural Caucus are Band-Aids and Band-Aids won’t stop this kind of bleeding.

What we urgently need is bold thinking and immediate, significant financial help – – a transfusion, not Band-Aids — as well as a long-term solution to the school funding crisis.

It is for this reason that the Wisconsin Alliance for Excellent Schools has launched “A Penny for Kids,” a program that has the support of thousands of voters. It proposes a one-penny increase in the sales tax in order to meet, head on, the revenue shortfall. This transfusion of revenue will buy us the time we need to address the structural failures of our current funding formula.

I appreciate the Rural Caucus’s willingness to take on this issue, but their solution falls far short of the urgent and significant reform that must begin now.

Last, but not least, the latest School-Funding reform Update from WAES (full update linked here, table of contents below with selected items linked to related posts on AMPS:

It is both good and bad that WAES is so busy.  It has become clear that WAES with Penny for Kids is the only group who have recognized the crisis that is happening and are trying to do something about it, in both the long and short term.   WAES can do this because we (I’m on the Board) are truly a grassroots organization, not beholden to the status quo or “the powers that be.”  As people realize this, WAES is attraxting more attention and interest.  That’s good.  The downside is that WAES is resource poor and over-extended.  We need more help from individuals and organizations.  Get in touch with WAES and find out how you can help.

Thomas J. Mertz

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Action to the South

At Fred Klonsky’s Blog there was recently a mini version of an AMPS type “Buzzsaw/Cuts” post on school budget issues in Illinois:

On this Saturday morning, this is how the state of Illinois is dealing with its school funding crisis: In Lemont, in Galesburg, in East Richland, in Hoopston, in Kaneland, in Waukegan, in Eldorado, in Jasper, in Elgin, in Knoxville, in Indian Prairie District 204, in Plainfield, in Ottawa, in Orion near the Quad Cities, and in Quincy.

I can’t say if the state and school budgets are worse in Illinois or Wisconsin and it doesn’t really matter which has gone further or faster in the wrong direction.  Both are in bad shape and both states are dominated by politicians who believe their re-elections are more important than addressing this reality and the lobbyists and donors who reinforce this message.

At least in Illinois, people are fed up enough to try to make their voices heard.  They have formed the Responsible Budget Coalition.  The video above is from their February 17 rally.  Below is their “We Can’t Wait” video.

We may not have thousands at the Capitol yet, but interest in tax and budget reform is growing and thousands in Wisconsin have signed the Penny For Kids petition.  Click the link to join them.

Thomas J. Mertz

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Filed under "education finance", Budget, education, finance, Local News, National News, Pennies for Kids, School Finance, Take Action, Uncategorized, We Are Not Alone

WISC EDITORIAL — THE PUBLIC’S SCHOOLS/ UNSUSTAINABLE BUDGETS

I need to add the The Wisconsin Alliance for Excellent Schools “stepped up” a long time ago and and is urging a step a Penny for Kids.  State officials talk the talk, but they need to walk the walk.  Sign on with WAES and Penny for Kids to remind them.

Thomas J. Mertz

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Filed under "education finance", Accountability, Budget, education, finance, Gimme Some Truth, Local News, Pennies for Kids, School Finance, Take Action, Uncategorized

February 16, 2010 Wisconsin Referendum Votes (Updated with Results)

Update, results:

Bangor, both pass, operating 379 yes votes to 214; construction 437 yes votes to 157 no votes.

Brodhead, fails, 1,021-828.

Edgar, passes 706 to 629.

Green Lake, fails, 393 to 374.

Hilbert, passes, 419 t0 305.

Rhinelander, both pass, operating 3,646 to 3,111, construction, 3,664 to 3,089.

Shiocton, pass, 8 votes, can’t find totals.

8 pass, 2 failed.

The video at the top is from the 2006 Madison referendum campaign, since the voter turnout on Tuesday is expected to be small I thought a little shame might help bring people out.

We are in a new era of referenda.  Referenda for building purposes remain much the same, except in many districts property tax increases to make up for drops in state support have made passage more difficult.  Operating referenda are also more difficult for the same reason, but there is a twist.  Previously the biggest financial issue was that rising costs — many of them mandated or near mandated — outstripped allowed revenue increases (the revenue caps).  This problem remains, but in many districts it has receded in importance because the drop in state support has made simply taxing to the max — using all the allowed revenue authority  — and the large property tax increases that result  intolerable to many voters and Board members.  According to the Wisconsin Taxpayers Alliance, a recent record 98 out of 427 districts — including Madison — did not tax to the max for the current yearEvery indication is that the percent will be higher this year.  For these districts, increased revenue authority via a referendum is irrelevant.   These districts have to cut to address the gap between allowed revenues and costs (like always) and are cutting to limit property tax increases.   It is a new era.

It is this situation that leading our schools into crisis and making our schools the center of conflict instead aspirations.  It is this situation that inspired the Wisconsin Alliance for Excellent Schools to launch the Penny for Kids campaign to increase state education funding and improve how it is allocated.  Click the links, find out more and sign the petition.

On Tuesday, eight districts will have a total of ten referenda before the voters; four for construction borrowing, and six for operating expenses (one recurring and five nonrecurring).  You can see all the referenda details here.

The Bangor district is asking for $580,000 in demolition and construction debt authority (for the old high school gym, this would be a no interest ARRA loan) and three years on additional revenue authority at $350,000 a year.  The district referendum page is here.  Here is what the LaCrosse Tribune reported on the operating referendum:

“We’ve pared things down, and even if this one passes we will still have to look at ways to reduce our budget and conserve our expenses,” Superintendent Roger Foegen said. “But the board felt in these tight economic times we couldn’t ask for any more than we are currently getting.”

The district is in the final year of a three-year $350,000 operating referendum, he said.

Without renewal, it will face a $400,000 to $450,000 deficit next school year.

The district already trimmed $600,000 from its annual budget before going to the public three years ago, Foegen said.

“Because of the state funding formula and the things that go into it, we need to maintain it if we are going to keep our current programs and personnel,” he said.

Foegen said the plan will cost the owner of a $100,000 property an estimated $78 in 2010-11; $39 in 2011-12; and $13 in 2012-13.

The Brodhead district has a four year non recurring measure on the ballot.  Here is how it breaks down:

2010-2011 $635,000
2011-2012 $810,000
2012-2013 $855,000
2013-2014$1,285,000
Total $3,585,000

The district has a nice referendum page here.  It includes a list of cuts made sine 2003-4, which is good reminder that the current crisis comes on top of 16 years of cuts because — by state design — revenues have bee kept below cost-to-continue.  You can read the whole list at the link, here are the programs:

Programs or Activities Eliminated

– Jazz Band II eliminated – FHA (Future Homemakers) eliminated

– FBLA (Future Business Leaders) eliminated

– drivers’ education eliminated

– District funding for 7th grade camp eliminated (still runs thru funding by student activity account)

– access to HSED/GED programming at BlackHawk Tech reduced and restricted

– greenhouse no longer heated by District funds (now provided by FFA Alumni)

– eliminated French as an elective class at the HS

There is also a narrative  of what will likely be cut if the referendum fails here are some excerpts:

The School Board has identified staff and program cuts that will be necessary to balance the budget without a successful referendum. These would include: three elementary teaching positions (moving all grades to three sections, regardless of the number of students in the grade); three teaching positions between the high school and middle school, plus two elective programs (and their teachers) at the high school and middle school; one guidance counselor; two administrators; the high school adventures class; the long-distance learning program; and ALL extra-curricular positions at the high school and middle school. These cuts would be phased in over the next two years.

And, what is the impact of these cuts? Class sizes in the elementary school would increase from the current 18-23 students, to classes in the high twenties. Class sizes in the high school would increase from the current mid-twenties to around thirty, with some classes pushing thirty-five students. With the larger class sizes, students would receive less of the individual attention many of them need to be successful in school. Curriculum development and innovative new programs would fall by the wayside. Students would have less access to advanced coursework, at a time when they most need it to compete with graduates of other schools. And, access to some elective programs that prepare students for specific career fields might be eliminated altogether. Students having problems at school or home would have less access to a counselor.

Remember that Governor Jim Doyle and the Democratic leadership continue to boast of having “protected education.”  With “friends” like that — who look the other way while cuts like these are on the table — education doesn’t need enemies.

The Janesville Gazette reports another factor at play in the Bradhead and other votes on Tuesday (the Beloit Daily News includes similar observations):

District officials have “real serious concerns” if the referendum fails because families will have three days to file by the state’s open enrollment deadline to attend different districts, [Superintendent Chuck] Deery said.

“I’ve been hearing from quite a few families that that’s exactly what they’re going to do,” he said. “They won’t wait around (to see the board make the cuts). They want those activities for their kids.”

This is the death spiral.  State policies and budgets force program cuts, enrollment declines as temporarily better off districts poach students, accelerating the cuts.

Edgar is asking to issue

general obligation bonds in an amount not to exceed $7,600,000 for the public purpose of paying the cost of remodeling existing physical education facilities for use as performance center/auditorium, constructing replacement physical education facilities, adding additional elementary classrooms, renovating and remodeling food service and music facilities, and acquiring equipment

The main Wausau Daily Herald story is here.  There are also a number of letters to the editor, all the ones I saw were in support.

Green Lake has the only recurring measure this time around.  For reasons that should be obvious recurring referenda make more sense.  The Bangor situation described at the top of this post is a perfect example.  Three years ago they went through the work to pass a nonrecrring referendum; now three years later they are having to ask again.  The reality of a system that does not provide for adequate revenues isn’t likely to change soon (here are those links to help work for change:  Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page) and districts and communities repeatedly “going to referendum” is a divisive waste of resources.

The open enrollment issue is part of this story too.  Green Lake has implemented environmental education and International Baccalaureate programs in an attempt to reverse the demographically-driven declining enrollment by attracting new students.

The Green Lake referendum page is here, with this video:

Vodpod videos no longer available.

Here are two items from their Q&A:

QUESTION: What happens if the referendum vote is no?

ANSWER: The district would have to cut $660,000 in the next budget, and there would be no additional funds for maintenance or technology. This would be followed by more cuts each year after that. There would be program and staffing reductions. Suffice it to say, the school would not be the same as it is today.

QUESTION: Has the district made cuts?

ANSWER: Yes, in the past four years the cuts have totaled over $600,000. This has allowed the district to extend the 2001 referendum extra years beyond the five years it was predicated to last.

Also worth reading is this from the RiponPress.com:  School: Tax effect would be minimal.

Hilbert is another construction project debt vote and like Bangor is looking to take advantage of stimulus related no interest loan opportunities.  They are asking for $4.7 million.  The Appleton Post-Crescent decribes the projects:

[U]pating classrooms; adding a new science wing; converting the current instructional media center and science labs to a larger library and media area and computer classroom; and upgrading heating, ventilation and air conditioning.

This is really the basic essentials, and if we turn this down I don’t know where we will go,” said Hilbert Supt. Tony Sweere, expressing hope that more voters “can get behind this.”

“It amounts to a 25- to 30-year fix for the middle/high school campus, which hasn’t been touched since it was built in 1974-75,” he said. “This will upgrade everything.”

A larger construction referendum failed by 89 votes in November 2008.

Rhinelander
is another district with both construction and operating expenses on the ballot (referendum page here).   The state finance squeeze has been particularly tough on Rhinelander.  They’ve tried repeatedly for relief from referenda without much success.  Since 2005, four construction debt referenda have failed, as have five operating votes.  The only one to pass was an HVAC upgrade paid for by a one-time operating levy increase.

The current construction ask is for ‘for remodeling and repairing existing buildings” and would also take advantage of the  ARRA interest savings.

On the operating expenses and state funding, here is how SDR business director Marta Kwiatkowski described the situation in the Daily News:

“The way the state’s school aid formula works means that every school district in the state eventually will go bankrupt, some sooner than later. In time, every district will need to go to referendum, asking residents to exceed the revenue caps,” she said.

State aid to the Rhinelander district has dropped precipitously in the past decade. In 2000-01, state aid was $13.2 million, approximately 52 percent of the general budget. By 2008-09, state aid had dropped to $7.7 million, approximately 28 percent of the general budget, requiring residents to shoulder more of the cost of running the district. State aid is estimated to be at zero for this district in four years. The adjacent graph charts the decline of state aid to the district since 2001 and the corresponding rise in property taxes.

Year Property Taxes State Aid

2000-01 $12,035,267 $13,249,469

2001-02 $13,460,627 $12,387,722

2002-03 $14,108,872 $12,145,111

2003-04 $15,351,872 $11,337,277

2004-05 $17,012,020 $10,089,233

2005-06 $15,613,885 $11,693,310

2006-07 $16,560,823 $10,859,344

2007-08 $18,600,885 $ 9,314,011

2008-09 $19,875,455 $ 7,721,621

The district’s annual budget from state aid and tax revenues for 2008-09 was $27.59 million, down $317,820 from the previous year. Comparatively, in 2001-02, the annual budget from these sources was $25.84 million.

Here are the proposed cuts if the referendum fails (click on image for pdf):

Closing schools, cutting extra-curriculars, raising class sizes, stopping book purchases….throwing the future in the trash.

Shiocton is another example of the false attraction of nonrecurring referenda, compounded by the squeeze of state defunding.  Their four year referendum is expiring but because of state cuts in education investments, they had tor raise property taxes last year by 20%.  The plan now is to ask for another nonrecurring operating referendum below cost-to-continue and combine that with cuts (this is similar to what Madison did with the “Partnership Plan“).

Here is how the Appleton Post Crescent explained things:

The referendum asks voters’ permission to exceed state revenue limits by $500,000 for the 2010-11 school year, $600,000 for 2011-12 and $700,000 in each of the following three school years.

Shiocton school Supt. Chris VanderHeyden said the district faces a $900,000 shortfall next school year if it does not take this step to help balance the budget by covering the cost of preserving district education programs.

Regardless of whether the referendum passes or fails, the school district of 790 students in pre- kindergarten through grade 12 will need to cut $400,000 to stay in the black, VanderHeyden said.

About 65 percent of the $400,000 will come in staffing cuts, he said, which includes a reduction of 3.5 teachers and two paraprofessionals. The rest will come from such areas as departmental budgets, athletics, staff development, textbook adoptions and food service. “We will make the cuts but we also need the referendum to balance the budget,” he said. …

The increase this year was up nearly 20 percent. Either way, the tax rate will drop next year, VanderHeyden said. If the referendum passes, property taxes will drop $107 for the owner of a $100,000 home. If it fails, the property taxes will drop $278 for the owner of a $100,000 home.

So if it passes, there will be major cuts and taxes will go down.  If it fails, there will be even larger cuts and taxes will go down more.  Where is the choice for fully funding education?

The best answer is that choice has to be made at the state level.  Here are those links again: Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page (the last has links to contact state officials).

Last but not least is Three Lakes.  This is one of those districts caught in declining enrollment and relatively high property wealth.  It also another district in the last year of a nonrecurring operating referendum.  Three Lakes is in worse financial shape, has been squeezed harder, have been cutting for years; according to the district figures, without a successful referendum they will run out of money in February 2011.

Therefore they are asking:

…that the revenues included in the School District budget for three years beginning with the 2010-2011 school year and ending with the 2012-2013 school year be authorized to exceed the revenue limit specified in Section 121.91, Wisconsin Statutes, by $1,517,469 a year, for non-recurring purposes consisting of funding operating expenses.

In the Rhinelander Daily News District Administrator George Karling and others give the big picture:

Three Lakes District Administrator George Karling said the override voters are being asked to approve is necessary to fund current programs and amounts to about half of the annual revenue that has been lost, compared to 10 years ago.

With about $900,000 in the district’s general fund, Karling said Three Lakes would only have funds available to operate through February 2011 absent approval of the override.

Informational material the district sent to voters indicates the district is not allowed to operate at a deficit and would “become insolvent and close in the near future” if the referendum fails.

School Board Clerk Tom Rulseh said the district’s budget is “really tight,” with the budgeted expenditures of $10,507,798.50 for 2009-10 down about $80,000 from the previous school year, while the revenue override is necessary to continue to operate.

“I don’t know where the money would come from” if the referendum fails, Rulseh said.

…When asked whether it would be necessary to approve another revenue override three years from now, Karling said he hopes state lawmakers change Wisconsin’s school funding formula by then to provide more money for Three Lakes, which is considered a “property rich” district and receives little state funding.

He said proposals on the state level to boost funding for K-12 education include an additional 1 percent sales tax, which is known as “A Penny for Kids” and backed by the Wisconsin Alliance for Excellent Schools, and a “65 percent hold harmless” provision to lessen the amount of lost revenue because of declining enrollment.

They also note that dissolving the district would likely lead to even higher property taxes.

That’s the roundup.  More votes in April.  Before closing I wnat to again share something and suggest you follow my lead.  When I do these posts that involve districts all over the state, I often take a look around their web sites.  I am always struck by the good work being done, some traditional, some innovative but all a source of pride for the students, the educators, the families and the communities.  All the sites are linked at their names, so I suggest you do the same.  It is a good reminder of why education is so important and why we need to do better recognizing that.  When you are done, help Wisconsin do better by getting involved for change.

Here are those links again: Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page.

Vote Yes for Schools (and do more)

Thomas J. Mertz!

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Filed under "education finance", Best Practices, Budget, Contracts, education, Elections, finance, Local News, Pennies for Kids, Referenda, referendum, School Finance, Take Action, Uncategorized, We Are Not Alone

Buzzsaw Time — Wisconsin School Budget Roundup

Just some of the stories  about the budget struggles of Wisconsin districts in the last week or so (linked and excerpted with emphases added).   Bad all over.

If you want things to get better, do something, join those working for change:  Wisconsin Alliance for Excellent Schools, Penny for Kids (SIGN THE PETITION!), School Finance Network and the AMPS “Take Action” page.

Let’s start with Madison: “A horrible situation’ – Madison schools face $30 million budget hole

The Madison School District is facing a $30 million budget hole for 2010-11, a dilemma that could force school board members this spring to order massive cuts in programs, dramatically raise property taxes, or impose a combination of both.

District officials will unveil a list of possible cuts — which could include layoffs — next month, with public hearings to follow.

“This is a big number,” School Board President Arlene Silveira said. “So we have to look at how we do business, we have to look at efficiencies, we have to look at our overall budget, and we are going to have to make hard decisions. We are in a horrible situation right now, and we do have to look at all options.”

I think what’s happened is the state of Wisconsin has effectively passed along the tax problem to the local level, in terms of either we raise taxes to support public education, or public education isn’t going to be supported,” said Erik Kass, assistant superintendent for business services.

Sauk Prairie Schools get budget input

“We’re going to have to start cutting some of these more main items,” [Superintendent Craig] Bender said, adding that every dollar in the budget is important to someone. “We didn’t start this process because we thought this was the best way to improve education, but we’re doing it though believing we’ll try to make it better wherever we can.”

Baraboo School Board grapples with more budget cuts

“We can address things one-by-one as we have been,” he [Board member Sean McNevin] said, “or we can take a top-down approach,” and hand the administration a set number of cuts with which to grapple.

Every fiscal cut we make tends to lay us on the road of mediocrity … but at some point it’s going to have to happen.”

[Baraboo High School Principal Machell] Schwarz said the district had been dealing with slim budgets for the past 10 years, however.

“We need to continue looking at the big picture, and stop focusing on money, and focus more on kids,” she said.

Monona’s Maywood [school] may close

The Monona Grove school district is scrambling for ideas to plug a budget hole of about a million dollars, including a proposal to consolidate the Monona community’s two elementary schools, Maywood School and Winnequah School.

“We have to look at every option. We have budgetary problems just like everyone else because of the state funding system and the poor economy,” [District Superintendent Craig] Gerlach noted in a phone interview on Thursday.

“I don’t want to close a school. But we have a predicted $1 million deficit every year for the next five years. We can’t balance the budget without threatening programs in our district that people have come to expect. In the long run, we can’t afford the luxury of this school,” he [Peter Sobol, Monona School Board vice president] said, noting that $250,000 in annual savings could keep four or five teachers in the classroom.

The Oshkosh Northwestern reports “Financial turmoil for school finances across Wisconsin due to state budget.”

But, nearly one in four districts, including Oshkosh, chose to tax below their caps this year despite the budget squeeze. The Wisconsin Taxpayers Alliance, an independent research group, reports 98 out of 427 districts did not tax to their revenue limits.

The change, he [Dale Knapp, research director for the Taxpayers Alliance] said, likely stems from a significant financial shakeup in the thick of a floundering economy. State lawmakers last summer cut aid to schools for the first time since the state’s education funding system was established in 1993. Local property tax payers were left with the burden of making up the difference if districts didn’t cut spending.

“When you talk to residents about the cuts being made to your school programs and then ask for a 10 percent or higher increase in the school levy, there’s a disconnect there, and that’s hard to take in,” Knapp said.

Many parents and educators in the district, along with some board members, have complained that cutting more than necessary only exacerbated today’s budget problems.

“It’s time for us to tax to the full levy. I’ve thought about that for a long time,” board member Karen Bowen said during a January school board discussion about the issue. “I don’t see how we can do good things for our kids if we just slash and burn.

More from Oshkosh.   First, some videos from WBAY-TV (I’m not sure of the right order, but they are all worth a watch).

Oshkosh School Board Decides Budget Cuts

Students, Teachers React to Oshkosh School Cuts

Oshkosh North Faces Cutting 70 Classes

Oshkosh Students Frustrated About Classes on the Chopping Block

For those who don’t watch, here’s the basic situation as described in this story:

The Oshkosh School Board had some difficult decisions to make Wednesday night — facing a multi-million dollar budget shortfall and making unfavorable cuts. The district faces a $4 million deficit.

In a late-night vote, after hours of discussion, the school board voted to increase the student-teacher ratio at North and West high schools to 25-to-1. This effectively eliminates an estimated 35 or 36 teaching jobs.

However, the school board rejected a plan to consolidate five of its middle schools into four buildings. Two elementary schools would close, and Perry Tipler Middle School would become an elementary school. Now, Tipler will remain a middle school.

The board took no action on the possibility of raising taxes.

A big crowd was on-hand for the school board meeting. About 80 people spoke out — many endorsing a double-digit tax hike to avoid drastic cuts.

The emotional audience was mostly teachers, parents, and students. Many said the cuts being proposed were too much.

Some of the cuts are catastrophic,” high school senior Derek Maters said. “If you look at the depth of them, it’s reaching from people who are looking at a tech career to people looking at a college career.

One more from Oshkosh: Dozens speak mind on proposed school cuts.

High school students easily accounted for most of the crowd at Alberta Kimball Auditorium at Oshkosh West High School, where hundreds gathered to hear the results of the meeting. One student presented the school board a petition with more then 480 student signatures opposing the cuts.

“For those who are not able to escape the district, you’re condemning their success,” said high school student Dereck Mathers, referring a report created by the high schools’ assistant principals detailing the impact of teacher layoffs on course offerings.

The report lists 43 West High classes and 67 North High classes that would no longer be offered next year if the resolution passes. The report predicts 787 West students and 1,142 North students would be impacted

“The problem with this is that if these courses are cut, many students will have to compromise for a lower level (education),” said Connor Schroeder, vice president of West High School’s student government.

West High School junior Ryan Steffen said he believes the cuts would create more impersonal relationship between students and over-worked teachers.

“I would like to speak for all the teachers because I’d like to not see them cut,” he said. “I know the passion they bring into work.”

Reading and hearing these students made me think of our older son.  He is at West and MMSD high school students  are in the process of choosing classes for next year.  I told him that it is very possible some of the classes he picks will not be offered due to budget pressures.  Hard to tell him that.  He’s volunteered on referendum campaigns and for school board candidates.  He did this because we taught him that being involved was a way to preserve and expand educational opportunities.  We’ve won those battles, we even won the battles to “Take Back the Assembly,” but the Assembly took back the victories.  Hard to tell him that too.

Here are those links again: Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page.

Next…

Budget forecasts show deficits for Kimberly Area School District

Budget forecasts suggest the Kimberly Area School District could have a $3.1 million structural deficit in five years should factors including state aid and teacher-to-student ratios remain unchanged.

[Scott] Gralla, [a consultant with PMA Financial Network] said there’s optimism that legislators will eventually restore higher funding levels to schools. Kimberly isn’t alone in the depth of deficits projected.

This is not out of the norm at all for districts your size,” Gralla said.

Proposed change isn’t elementary Whitnall district considers regrouping younger students

This proposal may only be the beginning of possible budget cuts, as the district could face a deficit between $1 million to $3 million.

Whitnall lost about $1.3 million in state aid last year and officials are unsure how much they will get from the state for the 2010-11 school year.

Nekoosa prepares to cut teacher jobs, programs

About $720,000 worth of reductions are planned for next school year, about $485,000 of which will come from the removal or reduction of 11 Nekoosa School District teaching staff members, according to documents provided to the public at Tuesday’s Nekoosa School Board meeting.

The plan includes eliminating a math and technical education teacher position from Nekoosa High School, a first-grade teaching job at Humke Elementary because of enrollment numbers, and English and social studies teachers at Alexander Middle School.

Several other positions are likely to have hours reduced, including choral music and art at Alexander, and business education and family and consumer education at the high school. A high school counseling position being vacated this summer because of a retirement also will not be filled.

“We are absolutely in financial crisis,” Superintendent Wayne Johnson said. “Virtually every school district in the state of Wisconsin is a little worse or a little better off than we are. The state funding formula is flat-out broke.”

Wisconsin Rapids, Public has chance to comment on proposed WRPS cuts tonight

The Wisconsin Rapids School Board must cut about $2 million from its budget for next school year

Nicolet’s finances chief concern of School Board candidates

We had cut as much as possible without cutting education,” he [candidate Joe Kasle] said. “We did not cut the arts, feeling that is part of having well rounded students. We had fund balance left to get through only 18 months. If the referendum had failed, we would have had to go to referendum again. After 17 years of 2 percent funding from the state and 4 to 5 percent increases in costs, there was just no money.”

That’s it for now.  I have more links and stories, but this is too depressing to do all in a couple of sittings.

Don’t get depressed, get mad, get active:  Here are those links again: Wisconsin Alliance for Excellent Schools, Penny for Kids (SIGN THE PETITION!), School Finance Network and the AMPS “Take Action” page.

Thomas J. Mertz

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Filed under "education finance", Best Practices, Budget, education, finance, Local News, Pennies for Kids, School Finance, Take Action, Uncategorized, We Are Not Alone

Board of Education Wrap Up, Quick and Late

I’m just finding the time to post this on the Monday February 8,  meeting (preview of that meeting here).  To be honest, it wasn’t a very exciting meeting.  Most of the real work was done the previous week, when they met as Committees.

Almost everything on the agenda passed 6-0 (Lucy Mathiak, absent) with no discussion.  A few things deserve a little comment.

It looks like there will be something of a restart on the La Follette area planning.  The Board voted to use technology and other things for 2010-11.  The timeline for the restart was given as “6-9 months.”  I hope the 9 instead of the 6.  Johnny Winston Jr also suggested that the Board be involved in the initial phases, the Board and administration agreed and I think that is good.   Overall a good way to move forward on something that was looking like a big mess.

The new Budget timeline was approved (see Gayle Worland’s Wisconsin State Journal story for more).  So there is now a plan for how to consider $30 million in cuts.  The only big change was that personnel cuts and other cuts will be taken together. Here it is:

Some things to note.  First, the May 3-7  meeting where the Board approves reductions will be the first meeting for either James Howard or Tom Farley (see here for info on the February 21 Progressive Dane Candidate Forum).  Second, the state mandated budget hearings will be odd this year due to the timing.  At that point the Board can add things back, but no real cuts are possible.  I would really like that hearing to occur at a time when everything is still on the table. I am also somewhat bothered that the Budget Book comes out after the Public Engagement sessions.

I did hear some good things from the Board and the administration about how this will be be done.  They seem committed to gathering as much information as possible, sharing that information with the public, trying to work from some common principles and as much as possible avoiding rancor.  It won’t be easy.  There will be a lot of pressure from the anti-tax crowd to cut and a lot of pressure from others not to cut specific things.   Going into this I do think it is important to keep in mind that the current situation cannot be attributed to local mismanagement.   This is a state created problem.  If you are going to get mad about the school funding situation, get mad at the state officials.

One other thing I’d like to say is that there have been some positive things done on things like 4K and the Strategic Plan where a real work on defining and implementing a vision for  improving educational opportunities has been started and I hope that does not get lost in all this.  The Board Members have expressed similar hopes.

Here are those links again: Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page.

On the Retirement Refinance and 4K funding the Board went with option 2B, smaller overall savings but more front loaded.  I believe the vote was 5-1, with Marj Passman favoring 5A.

Superintendent Dan  Nerad’s contract renewal/extension was passed with no public discussion.  Maya Cole abstained.

That’s about it.

Thomas J. Mertz

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A Starving Impulse

Sam Dillon of the New York Times has been doing some good reporting on the carrot/stick financing strategies of the Dept. of Educaction in the vortex of shrunken state budgets, stimulus money about to dry up in 2010 and Arne Duncan’s Race to the Top (RttT) funding proposal.

In a piece from January 18th, Dillon quoted Nevada’s school superintendent Keith W. Rheault, who noted that Nevada educators had initially grumbled about the RttT program but quieted their criticisms once their state’s tax revenues plummeted last year.

“When you’re starving and somebody puts food in your mouth, it’s amazing what states will do,” Mr. Rheault said.

It was obvious that any opposition was not going to derail efforts by about 40 states to compete in the first part of a two-stage competition (7 will also file for second stage applications later). This, despite the fact that many of those states had to perform last-minute legislative changes to make their proposals more in line with Dept. of Education guidelines. A big effort, for example, was made in many states to accomodate the mandate that raised the number of chartered schools or expanded the pool of students who are eligible to attend them. As well, both California and Wisconsin repealed their laws that banned the linking of student achievement data to teachers; one day, in Wisconsin’s case, after Mr. Obama’s visit to Madison.

But in their efforts to jockey for desperately needed cash, ostensibly to become a leader in education “reform,” critics have suggested that the various state’s inabilities to pay current bills should make everyone skeptical of their capacity to take on any such new initiatives. As a report noted , in the case of Illinois, if the state were to succeed in receiving RttT funding, “it might not have the ability to finance the long-term costs of any new programs once the federal money has been spent.”

“Not too long ago,” Ms. Slowik said, “everyone was encouraged to get early-childhood programs going,  but then the funding wasn’t there.”

“Then you come along and have Race to The Top, and say you’re going to give your all and put extra things on,” she added. “There’s a feeling in the education community that these are expectations some know they can’t meet.”

With Illinois, for example, already coping with $1 billion in arrears to schools, and having already used $1 billion in federal stimulus money to plug a major hole in the state’s education budget, this represents a precarious tightrope to be walking on indeed.

Some educators are skeptical that the state can meet even its current obligations for education financing, let alone support new Race to the Top initiatives.

“Not in the current financial situation — absolutely not,” said Kenneth Cull, superintendent of District 69 in Skokie and Morton Grove. “They put too much borrowing and Band-Aids on basic education. They can’t do that forever. That’s why there is really a crisis right upon us.”

Sam Dillon’s piece today explored the “funding cliff” faced by many of the nation’s schools as they begin to use up the  $100 billion that Congress included in the stimulus law last year to help schools cushion the impact of the recession.

New studies show that many states will spend all or nearly all that is left between now and the end of this school term.

With state and local tax revenues still in decline, the end of the federal money will leave big holes in education budgets from Massachusetts and Florida to California and Washington, experts said.

“States are going to face a huge problem because they’ll have to find some way to replace these billions, either with cuts to their K-12 systems or by finding alternative revenues,” said Bruce Baker, an education professor at Rutgers University.

The stimulus program “was the largest one-time infusion of federal education dollars to states and districts in the nation’s history.”

While states were warned by Sec. Duncan and others to not spend the money in ways that could lead to damaging budget holes once the federal money ended, most took to heart the other message, to stimulate the economy by saving, or creating, some 250,000 education jobs. In short, many states used the balance of their money for 2009-10 school year leaving little or no money available for 2010-11. Wisconsin was one of 20 states that said when applying for their stabilization funds that they would spend the entirety of the endowment through the 2008-10 school years. Many states ended up spending a considerable amount of their Title 1 funds to save jobs that previously would have been paid through state and local funding that were about to be dissolved due to cuts in that funding.

Yet another train wreck hurtling down the tracks for education. Who is left to turn to for answers of how the bleeding of public education will be staunched?

Robert Godfrey

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Something Nice — Wausaukee Wins Awards (and more on State and Local School Finance)

From WBAY-TV

AMPS followed the travails of the Wausaukee School District as the pressures 0f Wisconsin’s broken school finance system led it to the brink of dissolution.  A successful referendum in August 2008 gave the district new life.   This Wednesday, Wausaukee celebrated three prestigious awards, the High School won a Federal Department of Education National  Blue Ribbon School citation, Waunakee Community Middle School was selected as a Association of Wisconsin School Administrators Middle School of Excellence and both the High School and the Elementary School earned Wisconsin Promise Schools of Recognition.

Supt./Principal Jan Dooley explained the criteria for the Blue Ribbon award:

The Department of Public Instruction nominated our high school based on the category, “dramatically improving schools with at least 40 percent of our students coming from disadvantaged backgrounds.” In analyzing our data at the federal level, the federal review team moved our high school from this category to the category, “schools in the top 10% in their state with at least 40% of students from disadvantaged backgrounds.” We are extremely proud of our students’ scholastic performance which led to the selection of our high school as a 2009 National Blue Ribbon School.

Dooley is right to be proud of the students, the staff and the community.

Wausaukee is a classic “small but necessary” district that is squeezed by the state finance system.  The Wisconsin Alliance for Excellent Schools (WAES)  has long fought for reforms that recognize the diverse circumstances of  districts, schools and students in targeting educational investments.   As a result, Wisconsin  now has a (too) small “Sparsity Aid” (Wausaukee got about $39,000 this year).   Progress, but not enough and other state actions have undercut the good of this reform.  In particular the decreases in state aid have brought schools around the state to the brink of crisis (Wausaukee lost about 15% in state aid,  over $100,000 in total).

WAES continues the work on sparsity and other reforms, but this crisis has led to a stepped up action to address revenues through the Penny for Kids campaign for a dedicated 1 cent per dollar sales tax to fund education.  Sparsity, poverty aids and other moves in the right direction are part of the proposal, but the immediate revenue needs are the main focus.

Wausaukee was able to pass a referendum in 2008, but the cuts in state aid and the consequent raises in property taxes make that very difficult now.  Madison was also able to pass a referendum in 2008, but last year they they lost 15% in state aid didn’t tax to the max and next year —  when they will again lose 15% — they will likely tax well below the limit.  Here are the figures for state aid to Madison Schools for the last seven years ( from Asst. Supt. Erik Kass via Board Member Ed Hughes):

2004-05 – $50,064,391

2005-06 – $58,996,880

2006-07 – $56,984,763

2007-08 – $57,301,616

2008-09 – $60,743,743

2009-10 – $51,513,826

2010-11 – $43,761,093 (projected)

The old problems are still around — costs and allowed revenues not aligned, mandates underfunded, diversity not accounted for…  —  but there is also a new/old problem and that is that property taxes are becoming unsustainable.   The last time that happened, the state stepped up by pledging to provide 2/3 of educational investments.  In his first budget Governor Jim Doyle walked away from the pledge and it has been downhill ever since, reaching new lows with the 2009-11 budget (Doyle’s last).  This is why the Penny for Kids revenues are necessary.  Click the link and sign the petition.

I want to write more happy stories about education in Wisconsin, like this one started out to be.   Wausaukee and other districts are doing great things and that work needs to be celebrated and to continue and expand.  Till the continuance and expansion become real state priorities, I guess I’m stuck doing the jeremiads and calls to action.

Thomas J. Mertz

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Huge Cuts (and/or Big Taxes) for MMSD ?

At last night’s Madison Board of Education meeting (preview here) more details were given about the 2010-11 Budget situation.  There was some small good news and some large bad news.  The small good news is that because of savings and efficiencies, the gap between allowed revenues and projected costs has been reduced from about $2.8 milli0n  to about $1.2 million and that the search for savings continues.  The bad news is that due to the interaction between a broken school finance system and cuts in state aid to schools, Madison will be facing property tax hikes in the range of $312 on the average home if they tax to the max and more likely a combination of huge cuts and large property tax increases.

This is an difficult and unfortunate balancing act the Board must do because our state officials have not done the difficult work of reforming state school finance or finding better revenue sources.  To learn more and help push the state officials to do the job they promised to do (both in their campaigns and when they took their oaths of office), check these links: Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page.

Here are the ugly details:

For example, limiting the property tax increase of $157.50 per average home is projected to require $14.3 million in cuts to programs and services.

Some quick points:

Next Monday, February 8, the process and time-line for choosing from among bad choices will be on the Board agenda.  If you have any ideas or thoughts, be sure to let them know:  board@madison.k12.wi.us.

I was unable to attend the meeting and would be remiss if I didn’t thank those MMSD staff people who very helpfully sent me copies of the documents linked here (after I requested them).  Thank you!

I’d also be remiss if I did not offer those links one more time: Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page. .  The problem is at the state level and the answers have to happen at the state level.  Every indication is that state officials will not act unless pressured.

Thomas J. Mertz

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On the Agenda — MMSD Board of Education, February 1, 2010

Taking my cue from Brenda Konkel, I’m going to try an experiment in posting the Madison Metropolitan School District meeting agenda items, with some comments, observations and questions.   I can’t promise to do this every week, but will try.

The Weekly Notice of Meetings is here and occasions my first comment.  I’m really glad to see the La Follette Area Long Range Planning Group (LFALRPG) and the Superintendent’s Human Relations Advisory Committee noticed for a change.  The first has been meeting since November 2009 (according to this from elsewhere on the agendas) and the second has been in existence for close to a decade (maybe longer).  This is the first time that I know of that they have been noticed.   It is my semi-informed opinion that because the Board has been only indirectly involved with them, they fall into a legal gray area with open meetings statutes (see the note at the bottom of this post for more).  I’m glad the district has moved to respect the spirit of the law.  Still some room to go though, there are no linked materials for either and the materials for the LFALRPG posted elsewhere are woefully incomplete (more on that below).

The post-Superintendent Dan Nerad changes in governance have the Board meeting as committees one week and the as the Board the next week.  In theory the discussions from the first week inform revisions and votes on action items the next week.  Things that don’t require action seem to get fit in here and there with little rhyme or reason.  The good thing about this is that action items are introduced and available to the public at least a week before the final vote.  The bad things include  long meetings and exhausted Board members because of the expectation that all Board be part of all steps of all items.  Items late in the agendas often receive little or no scrutiny.  For example, I don’t think there was any substantive discussion of the Strategic Plan Core Measures at either the last committee meeting or the last Board meeting where they were on agendas.

This is a Committee Meeting week.  The will begin meeting at 5:00 Pm, Monday February 1, 2010, Doyle Administration Bldg. 545 W. Dayton Street Madison, WI 53703 Room 103.  There will be public appearances at the beginning of the first Committee meeting.   Like almost all Board meetings, these will be carried by MMSD-TV.

Student Achievement and Performance Monitoring Committee is first up.  The format for this experiment is agenda items in bold, linked to materials, followed by comments (where I have comments).  Those that I think are most important are in italics.

Student Achievement Data: Value Added Analysis (Report Only).

This is a big waste.  A waste of time and effort by the people who did the work, a waste of money for the people who paid for it (you and me), a waste of the Board’s time to listen to the presentation and a waste of my time in having gone through the report.

I’ve written about the problems and limits of Value Added Analysis (VAA) before and nothing here improves my assessment of the utility of this tool, especially in Madison where differences among schools are small and the whole approach obscures the achievement gaps we all know should be given attention.  To change my mind about VAA, I would need evidence that it is making reasonable and effective contributions to policy and resource decisions; the only reasonable and effective decisions this supports is dumping Value Added and reallocating the resources.

This isn’t the time or place for a full treatment of the issues, so just an introduction.  First some general things.

The first general thing is the old “garbage in, garbage out.”  This analysis is based on the WKCE and no matter how you tart the test results up with fancy number crunching, they are still (close to) rotten at the core.

The second is that a claimed “strength” of the version of Value Added MMSD  uses is the  renorming of expected achievement gains based on demographics in order to better compare how the schools are doing with children from very different backgrounds.  These are good numbers to have, but this approach also serves to hide achievement gaps and to some degree institutionalizes low expectations.  For example, if you dig down into the report for the coefficients used to renorm (page 19 for example), you can see that for purposes of the analysis an African American 4th grade student, receiving free lunch is expected to gain 10.22 fewer points  per year on the WKCE than a non African American, non free lunch student.  Two points: 1.  The gaps should be highlighted, not obscured; 2. It might be useful to know if these disparities are similar at all of our schools, a matter that the report is silent on (although in schools with small numbers of a particular demographic the confidence intervals would be so large that the analysis would likely be of little use).

This second is of particular interest because the big take away from the report is that Madison’s schools are all doing about the same according to the average renormed student gains.  In the 2006-8 reading analysis on 7 elementary schools have 95% confidence intervals where any portion falls outside of a narrow +/- 5 point range; the middle schools’ confidence intervals are all comfortably within that range.   If I read correctly these are WKCE scale score points and looking over the DPI material on that topic (and here), this range is narrow.  To confuse matters more, there are no clear trends that I can see from the 2005-7 to the 2006-8.  This means that it is hard to say that one school is (according to these measures) doing consistently better than others.

Let’s pretend that there were significant differences (which there aren’t) and that these differences persisted over time (which they don’t appear to have).  For this observation to be of use in formulating policy, you would need to be able to make a confident assertion of causality.  With the multitude of variables at play in each and every classroom and school, this is almost impossible.  School X got a new principal and a grant for Cultural Relevance — the VAA scores went down — is it the principal or the grant programs? or something else? School Y has an active PTO and a four new teachers — the VAA scores went up — thanks to the PTO?, the new teachers?, or something else?  You get the idea.

I’m glad to know that by these VAA measures our schools are relatively consistent but am highly skeptical that this “insight” is worth the time, effort and money it took to gain it.  Last word is that sadly, President Obabma, Secretary of Education Arne Duncan and State Superintendent Tony Evers do not publicly share my skepticism and have enshrined Value Added type things at the center of the Race to the Top, especially for teacher compensation (where the teacher contact numbers are smaller and the confidence interval larger).

Update on Fine Arts Task Force Recommendations (Report Only)

(See below for the finances) Not much here, some incremental progress on items identified for incremental progress.  The two big things that were part of this Task Force’s ask were better and more remunerative  community partnerships and a long range commitment for district funding.  A little on the partnerships here, nothing  much on h0w remunerative they are and the long term local district funding commitment ain’t gonna happen as long as state aid keeps getting slashed and Wisconsin’s broken school finance system isn’t fixed.  Insert obligatory Wisconsin Alliance for Excellent Schools and Penny for Kids links.

Summer School Report and Recommendations.

Looks like some good work done in the past will continue with some tweaking.  The minority and low income percentages are astounding.  There is certainly a need there, but it should be recognized that recommendations to participate in the remediation programs come very late in the year when many non-low income families have already placed deposits for other activities.  One interesting note is that last Summer’s 8th to 9th grade transition program did not happen due to lack of enrollment.

Usage of the Infinite Campus Electronic Student Information System.

My take away is that use of this potentially valuable communication tool varies widely from teacher to teacher and by school, isn’t anywhere near as high as it could be and declined with the Middle School shift to Standards Based reporting.  Parent use is also relatively small and there are big racial and income related disparities in use.  Same is true (if less so) with student users.

Evaluation of District Reading Programs.

This is in response to the discussion that occurred with the Reading Recovery Report.   Looks generally fine, but I question hiring the Hanover Research Council to do a preliminary glorified literature/research  review (unless we are already a member in which case we’ve already paid for it, there is no cost listed) and would like to see a target price range for the actual evaluation at this point, rather than when the RFP is being drafted.

I also think it is again appropriate to post these 1949  words from the Madison Superintendent Phillip Falk

There is no one “best” method of teaching children to read. Almost every known method, technique, or device is utilized as needed – experience, phonetic, word, sentence, story, meaningful drill or practice – not in isolation, but in an approach to a particular problem of a particular group or of a particular child.

Five-Year Education for Employment Report.

This plan affirms the commitment to and the actions of school communities to: prepare elementary and secondary students for future employment; ensure technological literacy; promote lifelong learning; encourage good citizenship; advance collaboration among business, industry, labor, post-secondary schools, and school districts; and establish a role for public schools in the workforce and economic development of Wisconsin.

This is required by the state every 5 years.

Consent Items.

The only thing of interest here is the Evaluation of Learning Materials Committee purchasing adoptions.  One of these days I have to figure out the allocations and cycle on this because every time I review one of these it seems like one school is getting huge amounts and the others very little.  There may be equity related issues with these purchase patterns.  This week’s big buyer is Hawthorne.  It is also interesting to see what is being purchased.  The highlight this time is 2 “Feels Real Baby Dolls” for Falk.

On to the Planning and Development Committee.

MMSD Strategic Plan Mid-Year Report.

Some progress.  I like the Core Measures, especially the attention given to the demographics of students in advanced programs.  I also worry that the community appears to no longer be involved and all the work is being done by staff.  This leads directly to my continuing dissatisfaction with the Community Engagement measures (I have been told by an administrator that they see a need to improve these also).  It doesn’t look there will be much budget guidance this year from the Strategic Plan process, except in the most abstract ways.

La Follette Area Schools Long Range Planning Recommendations to address the Facility/Enrollment and Programmatic Needs of these Schools.

With previous similar work there have been open, public processes with multiple options laid out for all to consider.  This group has been meeting since November and this is the first time I’ve seen anything; what I’ve seeing isn’t much.  Combined with the disappearance of the community from the Strategic Planning work  it makes me wonder how much of Superintendent Dan Nerad’s talk of transparency and community involvement is just lip service.  Some recent things (like the meeting notices mentioned at the top) are a good sign, but the record in whole isn’t very good.

I should note that “Community Meetings” are mentioned in the document, but when they happened (before or after the appointment of the group) isn’t clear.

There is only minimal information about enrollment projections (more can be found here) next to nothing about transport costs and it appears that only one plan involving changing attendance areas is being considered at this point.  It is labeled “Plan 15,” so I assume there were others at some point.  You could say that it is early in the process (I think it is, but am not sure), but to me that means there should more information and more options, not less and fewer.

“Income Disparity Among the Schools” is one of the three “Issues to Address” in the charge, but neither Plan 15 nor anything else in this document seems to address this issue.  Here is the analysis of Plan 15 (there are no analyses for the other “options”:

Note that under this option income disparity is in some ways worse.  Not responsive to the charge at all.

For earlier posts on the need for proactive policies on socio-economic diversity see here, here,  and here and this not on AMPS, but linked in an post here.  A brief summation of my position is that overwhelming research shows that poor children do better in schools where the percentage in poverty is neither too high nor too low and that an essential part of the mission of public education is bringing people together.

Proposal for Naming Book Room at Stephens Elementary School under Board Policy 6701.

It sounds like Angie Zimmerman was well deserving of this honor.

Attachment of Three Parcels of Property located off of Sugar Maple Lane to the MMSD under Wis. Stat. §117.13.

From Middleton-Cross Plains, near Olsen School.

Two Committees down, one to go.  Much done, much left to do.  Put yourself in the place of a Board Member and think about how productive you would be for the remaining work.

Time for the Operational Support Committee.

2010-11 Projected Budget Gap, Tax Impact, and Efficiencies to Address the Gap and a later agenda item 2010-2011 MMSD Budget Development Timeline and Process (these are separated on the agenda because the latter is an “action item” and the former is not).

The big change with the Timeline is that the Preliminary Budget and statutorily required Public Hearing are pushed to July.  I can certainly see some advantages with this, give all the state uncertainties and the fact that the old timeline put new Board members right into their most difficult tasks.  I do worry that July is not a good time for public attention or involvement.  Perhaps countering that is another good sign that the administration is getting more real about public engagement, throughout March and April there are Public Hearings scheduled.

The Projections document is confusing.  It references a financial forecast prepared with PMA, but no copy of that is included.  It promises departmentally identified efficiencies, but most are listed as TBA.  In the title the “Tax Impact” is metioned, but there is no real information about the tax impact, only a promise to provide information about the “tax impact” of the “budget gap….no later than Monday’s Board of Education Committee Meeting.”

The problem with this is that most of the tax impact is not due to the “budget gap” but the lack of state support.   To put it another way, the budget gap is one symptom of a broken state finance system that requires most districts to find some combination of cuts and efficiencies each and every year; the tax impact is another symptom of this broken system that has been aggravated by the cuts in state support.

Insert obligatory Wisconsin Alliance for Excellent Schools and Penny for Kids links along with discretionary School Finance Network link.

What is here is the first estimate of the size of cuts and efficiencies needed:  $2,825,693.  Not chicken change, but it could be worse.  On the tax impact, I’m hearing that if MMSD taxes to the max it could mean over $300 and perhaps as much as $400 more  for the average home owner.  That’s what happens when state aid is cut by 15%.

Here are those links again: Wisconsin Alliance for Excellent Schools, Penny for Kids, School Finance Network and the AMPS “Take Action” page.

I also don’t see any real discussion of how the Fund Balances might be used in this budgeting.  Back in October, the discussion and development of a Fund Balance Policy was promised for January 2010 and it has not happened (more on this here).  This leads directly to the next items.

Structuring the borrowing of funds in connection with the refinancing of the district’s WRS unfunded pension liability and, potentially, to assist with funding the implementation of Four-Year-Old Kindergarten and Authorizing the Assistant Superintendent of Business Services, on behalf of the Board, to grant written permission to allow Robert W. Baird & Co. to both: (1) serve as financial advisor to the District in connection with district borrowing via notes, bonds, or other obligations; and (2) submit competitive bids seeking to purchase such notes, bonds, or other obligations, with said authority to expire on the earlier of the date of future Board action or June 30, 2011.

I’ll readily admit that I don’t understand the 4 year Old Kindergarten financing as well as a I’d like to.  I’ve also missed some of the presentations and discussions, so some of my questions and concerns may have already been raised and addressed.

Here is how I think it is supposed to work.  Because of the three year rolling average of student numbers that is used to determine the revenue limits, the first two years require substantial support from outside the regular revenue sources (or cuts elsewhere).  In Madison, the combination of the Community Plan and the high per pupil revenue limit lead to a projected future where 4K generates more in the way of revenue potential than it uses (lots of assumptions about state revenue limit growth there and ultimate costs and the escalation of those costs, but that’s what they are saying).

Based on this the administration is recommending that the district use the WRS liability refinance to in effect borrow the start up costs and then pay them back from projected excess future revenue authority.  I want to start by saying  yes , in general the refinance of the WRS liability is a good idea but how the savings of that refinance should be used I am less clear on.  If the only choices are those in the document, the “Fully Combined” option seems best, but I’m not satisfied that these should be the only options.

The whole borrowing bothers me because borrowed money has to be paid back  (it may not technically be borrowing because it is being done as a refinance, but the reality is that using this for 4K means that debt payments in the future will be higher — unless I’ve read this all wrong).  For the 2009-10 budget, MMSD shifted almost $6 million in debt to future budgets.  This is a pattern I don’t like, especially at a time when the district Fund Balances are higher than they have been in years.  I would like to see the a full discussion of the costs and benefits of using the Fund Balances vs borrowing before this plan is approved.  That was supposed to happen, but it doesn’t look like it will.

I’m also not clear why — when we have a state system that does not provide resources for cost to continue budgets in most areas — we are not talking about using the projected 4K excess to limit future cuts in other programs.   If the Fund Balance were used, this would be possible.

I want to repeat that I’m not clear on much of this and acknowledge that my ideas about using the Fund Balances might not make financial sense, but it seems to me that those options should be on the table.

Proposal for a Welcome Center and Educational Credit Union Branch at La Follette High School.

I can see good things about this, but have three worries: 1)Doing this in one or two high schools doesn’t seem right — all or none; 2)We are giving a business access to our students; 3)It looks like it will cost the district about $100,000.  I would like to hear these issues raised.

It is recommended that the Board approve all three applications pursuant to the terms of the Administrators’ Retirement Plan.

Principals Howard Fried (Crestwood), Maty Hyde (Lindbergh) and Linda Kailin (Muir) along with a reminder that Asst. Sup Steve Hartley is also retiring.  I don’t know  the others but will miss Steve’s professionalism and friendliness.   I also worry about the district’s ability to fill senior positions, last I checked too many were still “interim.”

Consideration of approval of a one-year extension of Daniel Nerad’s employment contract as Superintendent of Schools as contemplated under Section 2.02 of the Contract, said extension to result in a new two-year contract commencing on July 1, 2010 and expiring on June 30, 2012.

In Wisconsin, administrators are limited to two-year contracts, which means rolling renewals.  After 18 months, I think Supt Nerad has more than earned a renewal; I’m not so sure about a raise at this time, the symbolism of  a freeze would send a good message at a time when family and district budgets are tight.

Approval of Bills.

Purchases and Contracts.

Playground sign, Cooperative Gymnastics and Hockey Teams, Server Upgrade and some items that deserve a little attention.

The allocations for the Desktop Instructional Technology Purchases (about $200,000) are not detailed in the posted materials.  Like all resource allocations there are equity implications and I would like to see these made part of the proposal and the discussion.

With the Scholastic System 44 Pilot Project we appear to be doing a new reading remediation in advance of  the study discussed above which is intended to guide future initiatives.  With the study pending, it seems wrong to commit to a new initiative.

Fine Arts Task Force budget amendment.

(See above for the Report) Some changes  from the original plans for the $100,000.  I do like the “Arts Equity Purchase” aspect (just two week’s ago I enjoyed a concert at my son’s school featuring instruments purchased by the PTO, other PTOs cannot afford things like that).  I’m not sure how this will sit with the Task Force members and would like to hear their thoughts (not that I’d necassirly agree with them, but good to hear).

Other Financial Transactions

Grants and donations and more evidence that grants and donations create inequities.  With that observation, a few words of praise for the Foundation for Madison Public Schools are in order.  That organization seeks to structure their work in a way that minimizes inequities.

Human Resource Transactions

New hires and shifts.

Whew, that was exhausting.  Again, think about the Board Members and the prep time they put in and the need to balance all these issues in one lengthy meeting.

For those who found something worth paying attention to here, attend or watch the meeting, drop the Board a note (board@madison.k12.wi.us) and remember that votes on “action items” will not occur until February 8.

Thomas J. Mertz

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