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Governor Signs Budget; it Boosts SAGE, Modifies Revenue Controls, QEO


1999-2001 Budget Bill Signed Into Law as 1999 WI Act 9

Governor Thompson signed the budget bill into law on Wednesday, October 27, 1999. What follows is a summary of the veto action he took on education items and a summary of other key items lobbied by WEAC that were untouched by vetoes.

Summary of Governor's Veto Action:

  • Foreign Language: The governor vetoed a provision that would no longer require school districts to offer foreign language instruction in 7th and 8th grades. Gov. Thompson said that he believes foreign language should be offered at these grades as well as lower grade levels. "The earlier we can expose children to foreign languages, the better off they will be in preparing for the global workplace as adults," he said. WEAC/WFT supported this action.
  • High School Graduation Test: Gov. Thompson signed most of this provision, reinstating a mandatory graduation test in Wisconsin but allowing schools to also consider academic performance and teacher recommendations in determining graduation. The governor made a partial veto to eliminate the use of "other criteria" which will limit school boards from using non-academic criteria in determining graduation. The budget includes $4 million to start development of a model statewide graduation test. WEAC/ WFT supported this action
  • Milwaukee Neighborhood Schools: The governor signed parts of the program that allow Milwaukee Public Schools to use intradistrict Chapter 220 money to support $170 million in bonding for construction of new schools and renovation or expansion of existing schools in low-income Milwaukee neighborhoods. The governor also vetoed several provisions that include: creating a Milwaukee school construction board to oversee decisions made by the school board; allowing the Assembly and Senate education committees to review construction decisions; mandating how MPS holds its public hearings on construction plans; requiring MPS to develop a plan for complying with current 220 programs; dictating what types of schools can be constructed; providing that at least 50 percent of construction contracts go to minority contractors. WEAC/WFT are analyzing the impact of this action. Milwaukee Voucher Program: The governor vetoed a provision that would have allowed students to remain in the voucher program if their family income exceeds the income eligibility criteria after they are accepted into the program. WEAC/WFT supported this action.
  • SAGE Program: The governor deleted $318,300 from the SAGE appropriation that funded three new staff positions to administer the program. The new positions must now be funded through an internal allocation of staff resources within the Department of Public Instruction. WEAC did not support that veto action. The governor also made a series of technical vetoes in the SAGE program language to remove any arbitrary barriers to allowing schools to participate in the program. WEAC supported those veto actions.
  • Technical College Substitution for W-2 Work: The governor partially vetoed the WTCS W-2 sections of the bill to remove the ability of W-2 participants to initiate the education program. The veto also ensures that any participant wishing to engage in technical college must work 25 hours per week. His action also enhances the role of W-2 financial employment planners in determining the education program for W-2 participants. WEAC is analyzing the impact of this veto.

The 1999-2001 state budget bill was passed by both houses of the Legislature on Wednesday (October 6, 1999). WEAC supported final passage of the bill.

WEAC Issued the Following Statement to all Legislators Prior to the Vote:

The Wisconsin Education Association Council and the Wisconsin Federation of Teachers urge your support for final passage of the conference committee report on the 1999-2001 budget.

We believe that great schools are built on the premise that we have quality schools, that they got that way because of the involvement of citizens at the local level, and that they can only remain that way through the support of citizens and elected officials. To strengthen that involvement and support, WEAC and the WFT are working to create a vision of schools that can best meet the needs of all children.

The 1999-2001 budget bill will foster greater support for schools by increasing funding for the SAGE class size reduction program; providing grants for alternative education opportunities; funding summer school programs; maintaining the state's commitment to fund its share of school construction costs; continuing incentives for teacher certification by the National Board of Professional Teaching Standards; providing additional funding for special education programs; and by providing some relief from revenue caps and the Qualified Economic Offer Law.

WEAC and the WFT see these components of the 1999-2001 budget as steps in the right direction to maintain the quality of public schools in Wisconsin. We urge you to support final passage of the bill.

* * *

The budget passed the State Assembly by a vote of 82-17 and the Senate passed it by a vote of 18-15.

Following is a brief summary of key items contained in the budget. (The X indicates specific items supported by WEAC).

  • SAGE: $47 million - Expand the SAGE class size reduction program by $47 million to a total funding amount of $77.3 million for the biennium. This funding will expand the program from the current 78 schools to as many as 400 more throughout the state. Provide position authority for 3 new staff in DPI to administer the expanded program. In addition, provide $3 million in a new annual appropriation for a categorical aid to reimburse school districts, except MPS, for 20% of debt service costs associated with SAGE building projects. The SAGE funding is a categorical aid distributed outside of the revenue caps.(X). Note Governor's Partial Veto: The governor vetoed the funding but not the authorization of the three new positions in DPI. The governor also made a series of technical vetoes to remove any arbitrary barriers to school districts to participate in the program.
  • Restore funding for school construction costs: $13.3 million - Maintain the state's commitment to fund two-thirds of referenda-approved school district debt levy costs (X).
  • Restore funding for increasing enrollment districts: $14.4 million - Delete the provision that would have placed a cap on increasing enrollment school districts under revenue controls (X).
  • Summer school pupil counts under revenue caps: $2.6 million - Beginning in 2000-01, the pupil enrollment used for the calculation of revenue caps will increase from the current 20% to 40% of summer school enrollment. This funding item will grow substantially in coming years as districts double the current number of summer school students counted under revenue caps (X).
  • Modifications to the Qualified Economic Offer law: 1. No longer count the cost of education attainment (lane movements) in a QEO; 2. Revise the definition of "economic issues" under a QEO by deleting the current broad-based language to more narrowly define what issues will be considered economic under a QEO. These changes will be first effective for contracts that cover periods after June 30, 2001 (X).
  • Special education categorical aid increase: $46.7 million - Provide new funding for categorical aids to maintain a state reimbursement of approximately 34% for local special education costs. These aids have been frozen since 1995. Special education aids are distributed outside of revenue caps (X).
  • Alternative education grants: Provide $5 million in a new annual categorical aid appropriation for grants to school districts and consortia of school district for alternative education programs. The new grants will be distributed outside of the revenue caps. (X).
  • Inflationary indexing of revenue caps: $6.5 million - Provide an inflationary index to revenue caps to raise the allowable per-pupil expenditure from $208.88 to $212.43 in 1999 and $216.68 in 2000 (X).
  • Revenue cap relief for declining enrollment districts: $23.9 million - Continue the 75% hold harmless relief under revenue caps for declining enrollment districts (X).
  • Revenue cap low revenue adjustments: Provide $1.5 million to increase the low revenue adjustment to $6,300 in 1999-00 and to $6,500 in 2000-01 to aid low spending poorer school districts under the caps (X).
  • National Board for Professional Teaching Standards grants: $162,500 annually - Continue the incentive grant program for NBPTS which includes a $2,500 per year salary bonus for the length of certification for educators. The program was set to end in 2001 (X).
  • WTCS general aid increase: $7.3 million - Provide funding for annual increases in state aids of 2.1% for the WTCS(X).
  • WTCS W-2 Participation: Allow W-2 clients to complete technical college education programs under certain provisions with work hours required. Provide child care services to those who are working to complete a technical college degree under W-2 (X). Note Governor's Partial veto: The governor made a partial veto of this section the increase the role of W-2 financial planners and their determination of education programs for W-2 participants. WEAC is analyzing this action.
  • Prevention of smoking by minors: Create a 20-member Tobacco Control Board and provide $2.4 million in 1999 and $23.5 million in 2000-01and each year thereafter. The funds will be used for education prevention programs, a smokeless tobacco campaign, grants to the UW and Medical College of WI and for administrative costs. Grants will be available in future years for the Board to award to public and private organizations for tobacco presentation/cessation purposes. Note Governor's Partial veto: The governor partially vetoed the overall funding and structure of the new Tobacco Board.(X).
  • Repeal of 7th and 8th grade foreign language instruction: Eliminate current requirement for school districts to offer foreign language instruction in 7th and 8th grade. Note Governor's Veto: This item was vetoed by the governor. WEAC supported the veto action (X)
  • Scheduling of school district referendum: Maintain current law allowing school districts to choose when to schedule school district referendum elections (X).
  • Maintain current law for bargaining the school calendar: Maintain current law requiring that the school calendar be a mandatory subject of bargaining. The Assembly attempted to make the school calendar a permissive subject of bargaining (X).
  • September 1 school start date: Prohibit a public school from starting the school year prior to September 1, beginning in 2000. Allow a school district to opt out of this provision, if the school board holds a public hearing and adopts a resolution to start school prior to September 1. Provide that this opt-out would have to occur each year. Specify that this provision would not prohibit a school board from (1) holding athletic contests or practices before September 1; (2) scheduling in-service or work days prior to September 1; or (3) holding school year-round.
  • School safety and discipline: Adopt recommendations of the Joint Legislative Council Study Committee on school safety and discipline which establishes new guidelines for school safety plans and collection of new information on pupil suspensions and expulsions. Remove provisions relating to creating a new felony and toll-free hotlines (X).
  • High school graduation test - no longer a "high stakes test": $4 million - Restore the high school graduation test as follows: (1) administer the test in grades 11 and 12 beginning in 2002-03; (2) require it to be given in charter schools; (3) require school boards to adopt written policies specifying criteria for granting a diploma and require that a pupil's scores on the HSGT be printed on their transcripts. In addition, maintain current law parental opt out provision allowing parents to pull their children out of the test for an alternative assessment developed by the school board. Note Governor's Partial Veto:The governor made a partial veto of this to make sure only academic criteria are used to determine graduation status of pupils. WEAC supported that veto action (X).
  • 4th and 8th graduation examinations - no longer "high stakes tests": Provide the same set of criteria for local school districts to administer the "no social promotion" tests that was applied to the HSGT (X).
  • Charter school petition process: Delete a provision that would allow those denied a charter to appeal to the state superintendent (X).
  • Federal Reimbursement for School Based Medical Services: Greatly expand the ability of school districts to receive reimbursement for school based medical services from the federal government (X).
  • School breakfast funding: $742,100 -- increase funding for the school breakfast program. This will be added to the existing program funding of $150,000 (X).
  • Pesticide sales and use reporting: Place $400,000 into a fund for the development of a new pesticide sales and use database reporting system. This will help track the use of pesticides on school grounds (X).
  • Maintain current law on for-profit charters in MPS: Require for-profit charter schools established by the City of Milwaukee to be instrumentalities of the school district (X).
  • Work Based Learning Board: Approve the creation of a 17 member Work Based Learning Board attached to the Department of Workforce Development. The Board will administer youth apprenticeship and school-to-work programs for at-risk children.
  • Milwaukee voucher program modifications: Provide $1.3 million for voucher summer school programs and allow a family that has an average total family income over a four-year period that does not exceed 1.75 times the federal poverty level to continue participating in the voucher program. Note Governor's Partial Veto:The governor vetoed the provisions allowing families to exceed income eligibility limits in the voucher program. WEAC supported that veto action.
  • Milwaukee voucher program funding: Require that half of the voucher program costs be drawn proportionately from state aid to schools statewide and the other half be funded from the Milwaukee schools appropriation.
  • MPS neighborhood schools and intradistrict transfer aid: Provide for Senate and Assembly committee review of neighborhood schools plan; create a four-member Milwaukee school construction board; provide that the Milwaukee Redevelopment Authority may issue up to $170 million in bonds to finance school construction; establish a legislative declaration for new construction projects; and establish public hearing requirements prior to final approval of the plan. Note Governor's Partial Veto: WEAC is analyzing the impact of the governor's partial veto of this item.
  • Aid for School Districts with a Large Area: Provide $125,000 annually as a categorical supplemental aid for school districts that satisfy certain criteria. The criteria includes: (a) fewer than 500 enrollment; (b) 200 square miles in area; and (c) at least 65% of the real property is exempt from property taxation, owned or held in trust by a federally recognized American Indian tribe or owned by the federal government (X).
  • Direct Instruction Pilot Program: Require DPI to award a grant of $80,000 annually from 1999-00 through 2002-03 to the UW-Milwuakee to conduct a direct instruction pilot program. Require that the funds come from DPI federal appropriations.

For More Information:
For additional information please feel free to contact Bob Burke in the WEAC Government Relations Division.

Last updated November 10, 1999