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Budget Brief: Final summary of budget, veto announcements
Governor's veto action results in "status quo" budget
for education.
Governor McCallum announced his 2001-2003 state budget veto decisions
Thursday, August 30, 2001. The governor signed two very important
education initiatives that place students in classrooms that work,
but he did not sign other items that are just as important to great
schools. The budget will help place kids in classrooms that work
by fully funding the SAGE class size reduction program, maintaining
the state's commitment to fund two-thirds of school operation costs
and restoring funding to 4-year-old kindergarten programs.
These items, however, represent a continuation of the status quo
for school funding. Fully funding the SAGE program was promised
by the Legislature during the last budget; two-thirds funding of
school operation costs is part of a continuing property tax relief
effort and 4-year-old kindergarten will simply be restored to current
funding levels.
In a surprise move, the governor vetoed the $115 million aid payment
delay to schools. His "buying back" of the aid delay will
require the Joint Finance Committee to ensure that schools will
receive their total aid payments from the state during this budget
cycle. It does not, however, increase state aid payments to schools.
Governor vetoes revenue cap flexibility and QEO changes, missing
an opportunity to truly support great schools:
Other veto actions, however, do not promote quality staff in schools,
nor will they benefit everyone in the community. The governor vetoed
the entire 0.78% revenue cap flexibility provision, thereby denying
schools $45 million in relief from the caps. He also vetoed all
of the modifications to the QEO law, rejecting the opportunity to
restore fairness to the bargaining table.
The governor's veto actions on revenue caps and the QEO will make
it increasingly difficult to recruit and maintain quality staff
and will continue to bind the hands of local school officials who
are trying to provide every kid with a great school. The fact that
the budget contains no extra funding for special education costs
means school districts will be forced to pit special education against
other programs, resulting in decisions that hurt all students.
Final budget highlights:
Veto Revenue Cap Flexibility:
- VETOED: $45M -- Allow districts
to raise their limit by 0.78% annually. This effort would have
been aided as part of the school funding formula.
- NOT VETOED: $14.1M -- Restore
the current law annual inflationary adjustment under revenue caps.
- $8.4M -- Restore the current law 40% funding of summer school
programs under revenue caps.
- $22M -- Provide a revenue cap exemption to school district
expenditures related to "community service" programs.
- $60M -- Maintain the state's commitment to fund 2/3 of referenda-approved
school district construction costs as well as maintain current
law on scheduling of local government referenda
- $700,000 -- Provide a revenue limit adjustment for large
area, low enrollment districts
- $193,300 -- Provide a revenue limit adjustment for the Wausau
School District Integration Transfer Program.
The state-imposed revenue caps, which limit the amount of money
school districts are entitled to receive in state aids and property
taxes, are keeping many school districts from providing classrooms
that work. Districts are being forced to delay spending on necessities
such as building maintenance and the purchase of computers and other
technology. Revenue caps are devastating many school districts throughout
Wisconsin. The vetoed item would have given districts minimal relief
from this onerous law, which is preventing districts from placing
children in classrooms that work by cutting vital programs and services.
Fully Fund SAGE:
- $171M -- Fully funds the SAGE program through 3rd grade in all
eligible schools. The governor's original budget cut SAGE funding
by approximately $37 million by only allowing schools with a poverty
rate above 50% to continue SAGE through the 3rd grade.
There is no better example of a program that makes classrooms work
than the Student Achievement Guarantee in Education (SAGE) program,
which reduces class sizes in early grades in low-income schools
and requires districts to create and implement plans for improving
student performance. The SAGE appropriation, however, was promised
to schools as part of the last state budget. The Legislature and
the State Superintendent of Public Instruction also deserve credit
for this item. This full funding decision occurred during Joint
Finance Committee action on the budget.
Deny Any Special Education Aid Increase:
- Provide no general aid increase for reimbursement to school
districts for special education costs.
The ability of Wisconsin schools to provide classrooms that work
is being seriously challenged because of the state's failure to
keep its commitment to fund special education. Schools are being
forced to choose between special education and regular education.
When the governor vetoed the revenue cap flexibility provision
in the budget he denied the only source of funding that school districts
had to offset the lack of special education funding. This action
will continue the situation of pitting regular education programs
against state and federally mandated special education programs
resulting in decisions that hurt all students.
Restore Funding for 4-Year-Old Kindergarten (4K):
- VETOED: Restore $14 million
- The governor's veto will restore current law funding for 4K.
Pupils enrolled in a 4K program will count as 0.5 as under current
law. Also, all children in a 4K program that provides 87.5 additional
hours of outreach activities will be counted as 0.6 pupil as under
current law.
The success of Wisconsin's public schools is inextricably linked
to the general readiness of students to learn. Appropriate funding
for 4K programs will provide the youngest learners with every opportunity
to reach their full potential. WEAC supports the governor's veto
decision on 4K, although WEAC and other public school advocates
sought to increase funding for 4K programs in the budget. This is
a status quo result for 4K. The budget stops short of increasing
funding for 4K programs so that they are treated the same as five-year-old
programs.
Bargaining the selection of group health insurers and bargaining
the school calendar:
(NOTE: The following items were removed from the budget by the
Conference Committee and therefore were not part of the governor's
veto considerations. They remain in this analysis as a review of
items that WEAC successfully lobbied to remove from the budget).
- Assembly proposal to make bargaining the selection of group
health insurers a permissive subject of bargaining.
- Assembly proposal to revise the QEO law so that a school district
would only have to provide "substantially similar" benefits
to teachers from one contract to the next.
- Assembly proposal leaving it up to the State Commissioner of
Insurance, a Republican appointee, to determine what constitutes
"substantially similar" benefits. Under current QEO
law, an employer must maintain both the existing fringe benefits
package and the district's percentage contribution effort in that
package.
- Assembly proposal to require school districts to not only solicit
sealed bids for provision of group health insurance but also encourage
them to put their employees in the state insurance pool rather
than continuing coverage under one of the WEA Insurance Trust
group health plans.
- Assembly proposal to make establishment of the school calendar
a permissive subject of bargaining.
The quality of a school staff is enhanced when the staff is part
of decision-making over issues such as fringe benefit options and
salary structure. The Assembly Republicans wanted to roll back health
insurance benefits by making health insurance a permissive subject
of bargaining and by changing the QEO law. Another Republican provision
would have made the establishment of the school calendar a permissive
subject of bargaining. Literally hundreds of WEAC members contacted
Assembly Republican leaders demanding that this assault on Wisconsin
public school employees stop. In the end, the Assembly retreated
on every point.
Changes in QEO law to protect permissive subjects of bargaining:
- VETOED: New QEO Component:
Maintenance of All Conditions of Employment. In order for a school
district employer's offer to be deemed "qualified,"
newly require the employer to maintain all conditions of employment
as those conditions existed 90 days prior to the expiration of
any previous collective bargaining agreement between the employer
and its represented teaching employees or 90 days prior to the
commencement of negotiations, if there was no previous collective
bargaining agreement.
- VETOED: New QEO Component:
Maintenance of Any Provisions Relating to Permissive Subjects
of Bargaining. In order for a school district employer's offer
to be deemed "qualified," newly require the employer
to maintain any provisions relating to permissive subjects of
bargaining that existed in the previous collective bargaining
agreement between the employer and its represented teaching employees
or that existed 90 days prior to the expiration of any previous
collective bargaining agreement between the parties in any written
agreement by the parties.
- VETOED: Binding Arbitration
Authorized if Employer's Offer is not "Qualified." Specify
that if an investigator from the Employment Relations Commission
determines, as part of an investigation whether a bargaining impasse
exists between the parties, that the employer has not submitted
a timely QEO, either the labor organization representing the school
district professional employees or the school district employer
would be authorized to petition for compulsory, final and binding
arbitration, and the current law QEO provisions whereby an employer
could avoid such arbitration procedures would not apply. Require
the Commission to prescribe by rule the methodology to be used
to determine whether or not a proposal submitted by a school district
employer constitutes a timely QEO.
- VETOED: QEO Initial Applicability.
Provide that these provisions would first apply to petitions for
arbitration filed by school district employers or their represented
teaching employees after the general effective date of the biennial
budget act.
WEAC supports the eventual full repeal of the QEO law. The law
unfairly singles out educators to cap salary increases, destroys
local collective bargaining and is harmful to employee morale impacting
the overall quality of instruction in schools. These proposed changes
to the QEO law sought to restore fairness to the local bargaining
relationship by maintaining conditions of employment, protecting
permissive subjects of bargaining and requiring the WERC to define
a timely QEO. The governor's veto actions will continue the QEO
restrictions on genuine collective bargaining and will intensify
the existing teacher shortage by making it difficult to recruit
and maintain great staff in our schools.
Rejection of "paycheck protection" language in budget:
(NOTE: The following item was removed from the budget by the Conference
Committee and therefore was not part of the governor's veto considerations.
It remains in this analysis as a review of an item that WEAC successfully
lobbied to remove from the budget.)
- Assembly provision to establish a "paycheck protection"
law making it illegal for all employers and unions to collect
member dues for use in political action.
The "paycheck protection" law would undermine the First
Amendment rights of teachers and other education employees to form
voluntary associations to advance their interests through the exercise
of other First Amendment rights -- free speech and petitioning the
government for redress of grievances. No other types of voluntary
membership associations are subject to such restrictions on constitutionally
protected activities.
Create a separate GPR appropriation for the Milwaukee Voucher
Program:
(NOTE: The governor made no veto changes to voucher-related items
in the budget).
- Delete the general school aid reduction for the voucher program
for non-MPS districts.
- Require MPS school aids to be reduced by an amount equal to
45% of the cost of the voucher program.
- Allow the amount of property taxes levied by MPS to offset the
voucher reduction to be counted outside of the calculation of
two-thirds partial school revenues.
- Fund voucher summer school programs at the same 40% level as
public summer school programs.
This provision essentially establishes a separate GPR appropriation
for the voucher program. State aid to schools outside Milwaukee
will no longer be reduced to pay for the voucher program. This provision
will require the voucher program to "stand alone" as an
appropriation in the state budget. WEAC believes the voucher program
must eventually be held accountable to the taxpayers for this appropriation
and that voucher schools should be required to meet the same standards
and assessments as public schools.
Expansion of Charter School Law:
(NOTE: The governor made no veto changes to these items in the
budget).
- Allow, on a pilot basis, the UW-Parkside to establish or contract
to establish one charter school in Racine. The charter school
could not operate as a high school or enroll more than 400 pupils.
Apply various other conditions relating to the creation of this
new charter entity.
- Provide the school district of Racine with "hold harmless"
funding so that the district will keep the state aid payments
for any pupil who leaves the district to attend this new charter
school.
- The Budget Conference Committee also rejected the Assembly provisions
that would have allowed counties, CESAs and WTCS districts to
charter schools statewide.
In order for public schools to benefit everyone, they need to be
accountable to the voters through their elected representatives
on school boards. That is why WEAC feels so strongly that new charter
schools must be instrumentalities of the local school districts
and that employees of charter schools must be employees of the district
with full bargaining rights.
WTCS-related funding items:
- $1.3M - Provide a 3.25% annual increase in funding for the WHEG
grant program.
- Cut $4.3M -- Limit TOP Grant to just first year students effective
July 1, 2001.
- PARTIAL VETO: $1.5M - Provide
$750,000 annually for incentive grants to districts with limited
fiscal capacity. The governor's veto eliminates the $750,000 increase
for the first year of the budget.
- PARTIAL VETO: $1.5M - Provide
$750,000 annually for additional course selection grants for the
purpose of adding sections in courses where student demand exceeds
capacity. The governor's veto is a write-down to reduce the increase
to $250,000 annually.
- VETOED: $300,000 - Provide
funding for assistive technology grants
- Require each WTCS board to accept credits transferred from another
district or from an institution or college campus within the UW
system for general education courses and for courses included
under a current plan for coordinating the transfer of credits.
- Expand the sunset date for expenditures on applied technology
centers without referendum approval from January 1, 2002, to July
1, 2003.
WEAC supported these increases in grant funding for the WTCS, but
also supported a general aid increase to the WTCS. The conference
committee did not provide any general aid increases to the WTCS.
Summary of other items of interest to WEAC:
- VETOED: Delay $115M in school
aid payments to the next biennium. Veto removes provisions delaying
the payment and $700,000 GPR for interest on the delayed aid payment.
- PARTIAL VETO: Vacant positions
in state government. Partial vetoes delete 30-day deadline for
determining vacant positions; removed non-GPR funding sources
from the lapse requirement; eliminates requirement that individual
appropriations be part of the DOA secretary's determination and
implementation of GPR lapses; and removes the requirement that
vacancies identified be deleted. Veto also strikes limitation
of lapse provision to only the executive branch. This veto action
may help to preserve vacant teaching and support positions at
the state's correctional and residential facilities.
- VETOED: Create a Legislative
Council Study Committee of School Funding.
- VETOED: Create a Legislative
Council Study Committee of Special Education Funding.
- PARTIAL VETO: Healthy schools
proposal. K-12 integrated pest management reporting. Partial veto
removes certain financial and administrative requirements on school
boards and districts for record keeping and reporting.
- PARTIAL VETO: Retain base
level funding for the High School Graduation Test development,
but delay test implementation by two-years. Restore the parent
opt-out provision to the test. The governor vetoed the two-year
delay for implementation of the HSGT. The first HSGT will be given
beginning in the 2002-03 schools as originally planned. However,
DPI will not be given any additional resources to finish creating
the test.
- VETOED: $2.5M - Eliminate
the 5% base budget cuts to DPI. The governor used his veto pen
to cut the DPI central office budget by 4%. This will result in
a cut of $723,000 to the DPI operations budget. The veto, however,
requires that the cuts not be taken from funding of the state's
residential schools operated by the DPI. Delete all provisions
that would require DPI to report on distribution of federal aids.
- PARTIAL VETO: $900,000 -
Provide $450,000 annually to the minority precollege scholarship
program. Governor's partial veto will write-down the appropriation
to a 10% increase.
- VETOED: $300,000 - Aid increase
for after school care programs.
- VETOED: Establish a Wisconsin
Educational Services Program for the Deaf and Hard of Hearing.
- VETOED: Calculator use on
statewide Fourth-Grade Examination. Veto removes prohibition on
use of calculators while taking the exam.
- PARTIAL VETO: Create a new
Department of Electronic Government. Vetoes make various changes
to the administrative and appropriations structure of the new
department.
- VETO: Recall elections of
city, village, town or school district officials. Veto deletes
revisions to the procedures.
NOT VETOED:
- Fund state residential schools in 2/3 calculation.
- Reject Assembly provision allowing TEACH grants to be given
to private schools.
- Require public utilities to provide DOA with energy billing
and use data for public schools.
- Beginning in 2002-2003, prohibit districts from starting school
before September 1. Specify that DPI could only grant a waiver
of this requirement if it determines there are extraordinary reasons
for granting it. Require DPI to promulgate rules to implement
and administer this provision.
- Allow school districts to hold their annual meetings before
May 15 or after October 31. Current law requires that meetings
may not be held before May 15 or after September 30.
- Require all public and private schools to offer the Pledge of
Allegiance or the national Anthem in grades one to twelve each
school day; allow schools to adopt a policy requiring school uniforms;
require schools that offer human growth and development classes
to offer instruction in marriage and parental responsibility;
encourage armed forces veterans to visit schools to discuss their
experiences as veterans and establish certain special observance
days in statute.
- Establish a children's vision initiative.
- $223,700 - Aid increase for the Badgerlink program.
- $220,000 - aid increase for County Children with Disabilities
Education Boards
- $217,800 - aid increase for school breakfast programs
- Rename the morning milk program the school day milk program.
For More Information:
Please feel free to contact Bob Burke, WEAC Legislative Program
Coordinator, with any questions relating to the information contained
in this summary. Bob can be reached by e-mail at burkeb@weac.org
or by phone at 800-362-8034 ext. 254.
Posted August 30, 2001
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