State Budget Summary

Key provisions in 1997-99 biennial state budget
as signed by the governor October 11, 1997

Budget Summary and Highlights:

The following information represents a time line and highlighted summary of key WEAC/WFT issues contained in the budget. This is a preliminary look at the outcome of issues that the WEAC and WFT lobbied as part of the budget bill. Please feel free to contact John Stocks, Director of Government Relations (StocksJ@WEAC.org), or Bob Burke, Legislative Program Coordinator (BurkeB@WEAC.org), at 800-362-8034 with any comments or questions related to the material contained in this memorandum.

Note: + before an issue title indicates provisions that WEAC/WFT supported in the budget.

Highlights of Key WEAC/WFT Issues in Budget

Highlights:

• +Class size reduction: Provide $12.8 million over the biennium to fully fund the Student Achievement Guarantee in Education (SAGE) program for all current schools and all additional eligible schools. Also provide $666,000 for a 5% increase in P-5 program. Veto Note: The governor partially vetoed a SAGE provision that allowed the DPI to allocate SAGE funds to other districts if not all currently eligible schools applied for funds.
• +Revenue controls: Modify revenue controls by providing; (1) $3.2M to hold school districts harmless from declining enrollments which exceed 2% in the 1997-98 school year, and modify the provision to authorize a 75% hold harmless in 1998-99; (2) $3.9M for school districts to recognize 20% of their summer school enrollment; (3) $3M for a one- time per pupil revenue control inflationary increase from $206 to $211 in the 1998-99 school year; (4) $2M to increase the low revenue limit exemption from $5,600 per pupil to $5,900 in 1997-98 and to $6,100 in 1998-99, and (5) Modify the transfers of service law to provide more flexibility under the revenue controls. Veto Note: The governor's original budget package did not contain any recommendations for relief from statewide revenue controls. The governor made a partial veto reducing the Legislature's request to allow school districts to spend $217 per pupil in the second year. The governor also partially vetoed the legislature's request for declining enrollment relief beyond the current biennium, committing to address this issue in the future.
• +School District Referenda; (1) Delete an attempt to force school districts to schedule referenda in conjunction with spring and general elections; (2) Delete an attempt to no longer allow school district referenda to be aided by the state; (3) Require school districts to report passage of referenda or changes to debt service schedules to DPI.
• Charter Schools: Delete an attempt to allow CESA 6 to establish charters, but allow the City of Milwaukee, MATC and UW-M to establish charter schools. Require that any for- profit charters established by the City of Milwaukee be instrumentalities of the Milwaukee Public School System (MPS). Maintain current law for the establishment process and appeals process for all other charter schools.
• +Subcontracting: Delete an attempt to create a five-year subcontracting plan in MPS.
• +School-To-Work: Maintain 12 School-to-Work positions in DPI, but transfer 4.6 positions to the Department of Workforce Development.
• +AODA: Maintain all Alcohol and Other Drug Abuse programs in DPI.
• Youth Options: Establish an expanded Post-secondary Enrollment Options Program that allows high school juniors and seniors to attend WTCS, UW and private colleges. Veto Note: The governor vetoed modifications made by the Legislature that allowed WTCS district boards to reject student applications based on space availability and modified the payment mechanism of the Youth Options program.
• +Public School Choice: Provide $769,400 and a full-time position in DPI to establish a statewide public school choice program beginning in the fall of 1998.
• +School Levy Credit: Transfer $100M for the school levy credit to the school aid formula.
• +Education Technology -- TEACH: Provide $200 million in grants and borrowing authority to implement the Technology for Educational Achievement (TEACH) initiative. Veto Note: The governor partially vetoed the following TEACH modifications requested by the Legislature: (1) Allow the ECB chairperson to appoint a member to the TEACH Board; (2) require the TEACH board to promulgate emergency rules on TEACH program procedures; and (3) Provide $450,000 annually for a competitive technology grant program for public libraries.
• Private and Home Schooled Pupils: Allow private and home-schooled pupils to attend public school courses under certain circumstances.
• +DPI Base Budget: Provide $491,600 to DPI to restore base budget appropriations.
• +Standards and Testing: Require school districts to adopt academic standards in core subject areas (reading and writing, mathematics, science, history and geography) by fall, 1998. Require school districts to implement a high school graduation test by the 2000- 2001 school year and require the class of 2003 to pass the test in order to receive a high school diploma.
• +Various programs and appropriations: (1) Provide $143,100 to County Children Handicapped Education Boards for programming, (2) Provide $104,300 for the Wisconsin Morning Milk Program.
• +HEAB - MTEC: Provide $400,000 for a teachers education loan program administered by HEAB in the Milwaukee Public School system granting 50% loan forgiveness for each year an individual teaches full time in MPS.
• +DHFS Child-related programs in Department of Health and Family Services: (1) Provide $15.7M for new Badgercare program which improves access to health care for low-income families and children; (2) Provide $125,000 annually to the Sixteenth Street Center in Milwaukee for lead poison screening and outreach; (3) Allow $1.4M to be held in reserve for the Prevention of Child Abuse and Neglect (POCAN) program; (4) Provide $1M annually for a tobacco prevention grant program; (5) Delete request for a study of consolidating the centers for the developmentally disabled.

Highlights:

• +General Aids: Provide $1.66M for a general aids appropriation increase of 1.5% over biennium.
• +Faculty Development Grants: Provide $1.6M for Faculty Development Grants and remove suggested sunset.
• +Incentive Grants: Delete an attempt to make WTCS Incentive Grants an annual rather than continuing appropriation thereby preserving $600,000 in the program for WTCS. Veto Note: The governor vetoed the continuing to annual request stating that the WTCS Board should have the flexibility to administer these grants.
• +Handicapped Aids: Increase funding for grants to WTCS for transitional services for handicapped students by $400,000.
• WTCS W-2: Delete a provision to allow W-2 clients to participate in WTCS programs as part of Community Service Job requirements under the W-2 program. Veto Note: The governor vetoed this provision saying the policy would significantly alter the focus of the W-2 program.

Highlights:

• +Tuition Remission for Teaching Assistants: Create a program for tuition remission for teaching assistants.
• +Pay Increases: Provide $4M for a 4% increase in ?97-98 and a 4.5% increase in ?98-99 in pay for faculty and academic staff.

Highlights:

• +Positions: Provide $368,100 for 5.0 additional teaching positions for Prairie du Chien facility.
• +Positions: Provide 6.0 additional teaching positions for Racine youthful offender facility.
• Positions: Convert 29 positions at Racine facility to generalist counselor positions, but provide that the new positions cannot provide direct instruction without supervision.

Highlights:

• +School Calendar: Delete an attempt to make the school calendar a permissive subject of bargaining.
• QEO Modification: Delete a modification to the QEO law requiring that the amount of funds available under the salary component of a qualified economic offer must be increased by the amount of any savings realized by the school district employer in its fringe benefits package. Veto Note: The governor vetoed this request by the Legislature while committing to pursue separate legislation that would establish the QEO modification after the end of the current teacher contract period, which ends on June 30, 1999.
• +Attorney Positions: Provide $350,400 to restore funding for 3.0 base level attorney positions at the WERC.

Highlights:

• +Electronic Filing: Provide $102,800 funding for campaign finance report electronic enhancement.

Highlights:

• +Staff: Provide $270,400 to restore 2% cut in staff and program funding.
• +Base Budget: Provide $300,000 for standard base budget appropriation.

Highlights:

• +Auditors: Provide $12.4M over biennium to hire 12 revenue auditors.
• +Lottery Division: Provide $2.1M to fund a reorganization of the DOR Lottery Division.

Highlights:

• +Technology: Provide $5.4M program revenue for improvements in the investment management operating system and information technology.

Highlights:

• +Cigarette Tax Increase: Increase the cigarette tax by 15 cents per pack making the state tax a total of fifty-nine cents per pack.

Highlights:

• +Public Records Release: Delete an attempt to overturn the Wisconsin Supreme Court Woznicki decision relating to the release of personnel records of public employees. Veto Note: The governor vetoed this provision noting that the issue of public records should be presented and argued before the Legislature in a free and open public deliberation. In addition, the governor noted that this provision is non-fiscal policy and should not be in a budget.
• "Double Dipping Study:" Delete a requirement to study the issue of "double dipping" in the Wisconsin Retirement System where individuals receive public pension benefits while gainfully employed by a public entity. Veto Note: The governor vetoed this provision commenting that there are other more appropriate avenues available for pursuing these policy issues.
• +Juvenile Record Release: Allow law officials to release information to a school official relating to an act for which a juvenile has been taken into custody
• +MPS Retirement System: Delete a provision to allow the Milwaukee Public School Board of Directors to invest certain supplemental pension funds. Veto Note: The governor vetoed this provision noting that there are few, if any, precedents for allowing a fund to establish independent investment outside the state investment fund.

Highlights:

• +Provide $215M to pay the costs of the Special Investment Performance Dividend (SIPD) lawsuit.
• +Increase expenditures from DETF's retired employee benefits supplement fund by $2M for annuitants retiring before October 1, 1974.
• +Provide $1M annually in a supplemental appropriation for possible additional costs related to the lawsuit settlement.

Budget -- TIME LINE:

February 12, 1997: Governor Thompson introduced his 1997-99 budget proposal to the Legislature. Two identical bills (AB 100 and SB 77) were introduced and referred to the Joint Finance Committee (JFC).

March 12, 1997 to April 22, 1997: Joint Finance Committee held public hearings. WEAC/WFT members testified at hearings in Milwaukee, Wausau, Madison, Green Bay, Superior and Eau Claire.

April 24, 1997 to June 19, 1997: Joint Finance Committee held executive sessions on the budget. JFC took more than 2,000 separate votes on budget items either adopting, rejecting or modifying the governor's budget recommendations. On June 19, 1997, JFC voted to recommend the budget bill for passage by a vote of 10-6. JFC members who voted no were; Senator George (D-Milw), Senator Wineke (D-Verona), Senator Jauch (D-Poplar), Senator Cowles (R-Green Bay), Senator Panzer (R-West Bend) and Rep. Coggs (D-Milwaukee).

• May 8, 1997: Approximately 100 parents, principals, teachers and WE-ACT Team members lobbied JFC members to support full funding of the SAGE program.
• June 16, 1997: 91 WE-ACT Team leaders and staff were briefed on the budget bill and met with key legislative staff at the Capitol to discuss budget issues.
• June 17, 1997: WEAC/WFT Capitol Rally and Legislative Contact Day "Raise Your Hand for Children and Public Education." Thousands of WEAC/WFT members and public education supporters rallied at the Capitol. After the rally, 2,225 WEAC/WFT members met with legislators to discuss budget issues and the QEO law.

June - September, 1997: Differences in personalities and policy priorities prevented the State Senate Democrats from passing a budget. On September 10, 1997, Assembly Republicans finished work on their own version of the budget by taking votes in their partisan caucus. A July 2, 1997 package offered by Senators Adelman (D-Waukesha), Wineke (D-Verona) and Jauch (D- Poplar) received 15 votes from the Senate Democratic Caucus. A July 24, 1997 package offered by Senate leadership received 16 votes in caucus. Senator George (D-Milwaukee) remained uncommitted to supporting any budget package in the Senate.

September 4-16, 1997: Unable to adopt a budget package, the Senate Democrats agreed to let the Assembly take up the budget bill first. The Joint Finance Committee applied all of its budget modifications to AB 100 and released it to the Assembly as ASA 1 to AB 100 on September 4, 1997. The JFC recommended passage of ASA 1 to AB 100 by a vote of 10-6.

September 10-16, 1997: Speaker Brancel (R-Endeavor) and the Republican leadership in the Assembly engaged Assembly Democrats in bi-partisan negotiations to develop an Assembly budget package. Representatives Baldwin (D-Madison), Olsen (R-Aurora), Meyer (D-LaCrosse) and Nass (R-Whitewater) were assigned to negotiate education issues. The negotiated budget package passed the Assembly on September 16, 1997 75-24 and was referred to the Senate.

September 18-29, 1997: On September 18, 1997 Senators Wineke, Jauch and George released a third budget package for consideration by the Senate Democrats. Between September 19-25, Senate Majority Leader Charles Chvala (D-Madison) completed negotiations with the governor's office and Senate Republicans on a final budget package that included most of the Wineke, Jauch, George package. The Senate voted 30-3 for passage of the budget on September 25, 1997. On September 29, 1997, the Assembly concurred with the Senate changes to the budget and passed it by a voice vote.

October 2-10: WEAC/WFT issued budget action alerts requesting members to contact the governor's office and urge his support for children and public education in the budget. Several hundred members and public education supporters sent copies of e-mails and letters to WEAC Government Relations.

October 11, 1997: Governor Thompson signed the 1997-99 biennial budget into law as 1997 Wisconsin ACT 27.

Posted October 14, 1997