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Budget Brief: The need for revenue cap flexibility Background 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 improvements in necessities such as building maintenance, school security measures, and the purchase of computers and other technology. They have also cut or eliminated important programs and services for children. Superintendents also report that overall educational quality is declining as a result of revenue caps. The Wisconsin Education Association Council supports full repeal of revenue caps. However, this is not likely to happen in this biennial budget. WEAC is part of the Education Community Coalition seeking a bare minimum level of flexibility under revenue caps as part of the 2001-2003 state budget. School administrators, educators, parents and local school board members have joined together to tell stories about how revenue caps are harming the quality of public education in their communities. Individuals from these various backgrounds appeared as panels at each of the Joint Finance Committee public hearings on the state budget and are now personally visiting with legislators to seek flexibility under revenue caps. The Education Community Coalition composed of groups supporting flexibility under revenue caps includes: the Wisconsin PTA, the School Administrators Alliance, the Wisconsin Federation of Teachers, the Institute for Wisconsin's Future, the Wisconsin Coalition for Advocacy, and representatives from the Janesville, Madison and Milwaukee school districts. WEAC Supports a 1% Solution Funded As Part of General Equalization Aids While Maintaining Inflationary Adjustments and Summer School Funding WEAC supports the following package designed to provide flexibility under revenue caps: · Give school boards authority to exceed revenue caps by up to 1% of the state per-pupil allowable spending average. In FY02, according to DPI, this would yield about $74 per pupil and $77 in FY03. Also, maintain the current law inflationary indexing of the revenue caps and maintain the current 40% funding of summer school pupil counts for districts. 2001-2003 State Budget Sent to Governor The final version of the budget sent to the governor includes the following revenue cap flexibility provisions: Allow districts to raise their revenue limit by 0.78% annually. This budget item provides $45 million in revenue cap flexibility funded as part of general equalization aids. The new revenue authority must be authorized by a two-thirds majority vote of the local school board. This revenue cap flexibility is a non-recurring exemption, so a board must vote annually to exceed its cap. Provide a revenue cap exemption for school district expenditures related to community service programs. This exemption could result in an additional $22 million in new revenue authority under revenue caps for school districts over the biennium. Provide a $700,000 revenue limit adjustment for large area, low enrollment districts and make modifications to special adjustment aids. Provide a revenue limit adjustment for the Integration Transfer Program in the Wausau School District. Maintain current law inflationary adjustments and the 40% per-pupil funding for summer school pupils under revenue caps. Talking Points A joint survey by WEAC and the Wisconsin Association of School District Administrators (WASDA) showed that two-thirds of superintendents expect the overall quality of education in their districts to decline between now and 2005. 62% of superintendents say the revenue caps have had a negative effect on the quality of their districts' programs and services. Revenue caps prevent schools from placing kids in classrooms that work. The state's micro-management of school districts has resulted in conflicting policies that narrow the curriculum. One state policy raised standards and required performance testing in five academic areas; another reduced fiscal support through revenue controls. The result: a budget shortfall that forces districts to cut educational programs. When budget cuts are called for, districts will eliminate "nonessential" courses and programs, such as health education, enrichment programs, electives and remedial programs for students. Revenue controls deprive local communities of their authority to create and maintain the great schools they want. Revenue controls are based on student enrollment. They ignore districts' actual expenses, the learning needs of students, and economic circumstances. The governor's budget, as originally introduced, ratcheted down even harder on revenue caps by eliminating automatic inflationary adjustments and by reducing summer school funding from 40% to 25% of pupils counted in those programs. For additional information: Please feel free to contact Bob Burke, WEAC Legislative Coordinator, at 800-362-8034 ext. 254 or by e-mail at burkeb@weac.org for additional information about this budget brief. Posted August 9, 2001

Budget Brief: The need for revenue cap flexibility

Background

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 improvements in necessities such as building maintenance, school security measures, and the purchase of computers and other technology. They have also cut or eliminated important programs and services for children. Superintendents also report that overall educational quality is declining as a result of revenue caps.

The Wisconsin Education Association Council supports full repeal of revenue caps. However, this is not likely to happen in this biennial budget. WEAC is part of the Education Community Coalition seeking a bare minimum level of flexibility under revenue caps as part of the 2001-2003 state budget.

School administrators, educators, parents and local school board members have joined together to tell stories about how revenue caps are harming the quality of public education in their communities. Individuals from these various backgrounds appeared as panels at each of the Joint Finance Committee public hearings on the state budget and are now personally visiting with legislators to seek flexibility under revenue caps.

The Education Community Coalition composed of groups supporting flexibility under revenue caps includes: the Wisconsin PTA, the School Administrators Alliance, the Wisconsin Federation of Teachers, the Institute for Wisconsin's Future, the Wisconsin Coalition for Advocacy, and representatives from the Janesville, Madison and Milwaukee school districts.

WEAC Supports a 1% Solution Funded As Part of General Equalization Aids While Maintaining Inflationary Adjustments and Summer School Funding

WEAC supports the following package designed to provide flexibility under revenue caps:

· Give school boards authority to exceed revenue caps by up to 1% of the state per-pupil allowable spending average. In FY02, according to DPI, this would yield about $74 per pupil and $77 in FY03. Also, maintain the current law inflationary indexing of the revenue caps and maintain the current 40% funding of summer school pupil counts for districts.

2001-2003 State Budget Sent to Governor

The final version of the budget sent to the governor includes the following revenue cap flexibility provisions:

Allow districts to raise their revenue limit by 0.78% annually. This budget item provides $45 million in revenue cap flexibility funded as part of general equalization aids. The new revenue authority must be authorized by a two-thirds majority vote of the local school board. This revenue cap flexibility is a non-recurring exemption, so a board must vote annually to exceed its cap.
Provide a revenue cap exemption for school district expenditures related to community service programs. This exemption could result in an additional $22 million in new revenue authority under revenue caps for school districts over the biennium.
Provide a $700,000 revenue limit adjustment for large area, low enrollment districts and make modifications to special adjustment aids.
Provide a revenue limit adjustment for the Integration Transfer Program in the Wausau School District.
Maintain current law inflationary adjustments and the 40% per-pupil funding for summer school pupils under revenue caps.

Talking Points

A joint survey by WEAC and the Wisconsin Association of School District Administrators (WASDA) showed that two-thirds of superintendents expect the overall quality of education in their districts to decline between now and 2005. 62% of superintendents say the revenue caps have had a negative effect on the quality of their districts' programs and services.

Revenue caps prevent schools from placing kids in classrooms that work. The state's micro-management of school districts has resulted in conflicting policies that narrow the curriculum. One state policy raised standards and required performance testing in five academic areas; another reduced fiscal support through revenue controls. The result: a budget shortfall that forces districts to cut educational programs. When budget cuts are called for, districts will eliminate "nonessential" courses and programs, such as health education, enrichment programs, electives and remedial programs for students.

Revenue controls deprive local communities of their authority to create and maintain the great schools they want. Revenue controls are based on student enrollment. They ignore districts' actual expenses, the learning needs of students, and economic circumstances.

The governor's budget, as originally introduced, ratcheted down even harder on revenue caps by eliminating automatic inflationary adjustments and by reducing summer school funding from 40% to 25% of pupils counted in those programs.

For additional information:

Please feel free to contact Bob Burke, WEAC Legislative Coordinator, at 800-362-8034 ext. 254 or by e-mail at burkeb@weac.org for additional information about this budget brief.

Posted August 9, 2001