Joint Finance Committee Completes Action on DPI Issues; State Budget Set to Move Forward

The Joint Finance Committee (JFC) concluded action on state budget issues relating to the Department of Public Instruction on Wednesday, May 30. This memorandum is a summary of key actions taken by the committee. Stay tuned to OnWEAC for future updates, commentary and analysis on important public education-related developments in the state budget process.

It is expected that the JFC will complete all action on the budget by the first or second week in June. The JFC version of the budget will then go to the Senate for consideration first. Once the Senate votes on its version of the budget, it will be sent to the Assembly where that house can make its changes to the bill. In the end, a conference committee must settle any disagreements between the two houses on budget policy. The conference committee version of the budget cannot be amended and must be approved by a majority vote in both houses.

The final stage will be when the bill is sent to the governor for veto review and signature into law. It is possible, however, that any veto action by the governor could be overridden by the Legislature. That action requires a two-thirds majority vote in both houses. The budget has a statutory deadline for passage on June 30th, which is the end of the state fiscal year. However, the partisan nature of recent budget debates has delayed final passage of the budget until October.

Note: unless otherwise stated, party-line votes are generally when all Republicans voted no and all Democrats voted yes on a provision in question.

SAGE fully funded by 16-0 vote:

JFC provided an additional $20.7M above the governor's original request, enough to pay for reducing class size in kindergarten through 3rd grade in all SAGE schools.
JFC approved language to make the SAGE program permanent. This will allow the five-year contracts between the state and schools to be renewable.

WEAC position: Fully funding SAGE is one of WEAC's top priorities in the budget. It is now important that we work to protect the SAGE funding approved by the JFC.

Discussion point: In an amazing affirmation of the widespread support for reducing K-3 class sizes, the Joint Finance Committee unanimously restored money to fully fund the SAGE program. Governor McCallum's budget, as introduced, would have cut SAGE and only allowed schools with poverty rates above 50% to expand SAGE to the 2nd and 3rd grades. Aid to 370 schools with poverty rates below 50% would have been capped so that SAGE would only reach children in kindergarten and the 1st grade. The committee's action reverses the cuts proposed by the governor. The budget that will be presented to the Legislature in June will include full SAGE funding.

JFC restores current law adjustments but falls short on revenue cap flexibility:

Inflationary adjustment and summer school restored:

Republicans attempted to approve the governor's cut of the inflationary adjustment to revenue caps. This failed on a party-line vote of 8-8. The end result is that $14.1M was restored in the budget so school districts will continue to receive the inflationary adjustments.
Republicans attempted to approve the governor's cut of summer school funding to 25% under revenue caps. This failed on a party-line vote of 8-8. The end result is that $8.4M was restored in the budget so districts can continue to count 40% of summer school pupils under the caps.

Attempts to provide revenue cap flexibility died on party-line votes:

All attempts to approve additional flexibility under revenue caps failed on party-line votes of 8-8. These attempts included motions by Senator Shibilski (D-Stevens Point) allowing districts to raise up to 2% additional revenue under caps with the first 1% aided under 2/3 funding and the next 1% coming from local property taxes and another motion creating a revenue cap adjustment for health care costs.

WEAC position: WEAC supports the eventual repeal of the revenue cap law. In this budget year, however, WEAC has joined with other education groups to support giving all school districts the authority to exceed revenue caps by 1%. WEAC believes this authority should be aided as part of the 2/3 general equalization aids. WEAC also supports maintaining the inflationary adjustment and summer school funding in current law.

Discussion point: Revenue controls deprive local communities of their authority to create and maintain the great schools they want. Revenue controls are also based on student enrollment. They ignore districts' actual expenses, the learning needs of students, and economic circumstances. The Legislature must approve some level of flexibility under revenue caps in this budget or our great schools will be put at risk.

Special education aid receives zero increase

JFC neglected to fund a categorical aid increase for special education. Senator Plache (D-Racine) offered a motion to reimburse local school districts for 40% of special education costs, which failed on a party line vote of 8-8.
JFC did adopt another Plache motion to provide school districts with relief for low-incidence/high cost children in special education by a vote of 12-4 (Republicans voting no were Senators Darling and Welch and Reps. Albers and Kaufert). The JFC, however, failed to provide additional GPR dollars for this new category of aid. The end result is that the low-incidence/high cost dollars would come from existing categorical aid appropriations. Senator Plache pledged to fight for the appropriate level of funding for this program so that school districts with higher concentrations of low-cost special education children are not adversely impacted.

WEAC position: WEAC supports a 40% level of state reimbursement under special education. WEAC also supports providing additional funds separate from existing categorical aid appropriations for low-incidence/high-cost children in special education programs.

Discussion point: Providing all children with access to a great school must be the top priority for our government. In some rare low-incidence high-cost cases, a child in need of special education services can cost many times the statewide average to educate. A low-incidence high-cost relief aid plan should be approved to help in these situations, which can be devastating to schools under revenue caps. This funding, however, should not be taken out of the special education categorical aid appropriation given to all school districts.

Funding for four-year-old kindergarten rejected:

JFC rejected a plan by Senator Moore (D-Milwaukee) to allow school districts that offer four-year-old kindergarten to receive the same level of aid as five-year-old kindergarten. The vote was 8-8 along party lines.

WEAC position: WEAC supports funding in the 2001-2003 budget to count pupils enrolled in a four-year-old kindergarten program on a full-time equivalency (FTE) basis for the purposes of calculating revenue limits and general school aids beginning in 2002-2003.

Discussion point: More than 200 school districts currently run four-year-old kindergarten programs. These programs should receive the same level of support from the state as five-year-old kindergarten programs. Four-year-old kindergarten provides the youngest learners with every opportunity to reach their full potential.

2/3 general school aid approved and other adjustments offered:

JFC unanimously voted to maintain the goal of two-thirds funding of partial school revenues.
JFC unanimously voted to define the secondary cost ceiling of the equalization aid formula to equal 90% of prior year statewide shared cost per member. Had this adjustment been in place during the current school year, nearly 370 districts would have received additional aid and nearly 30 would have lost aid.
JFC rejected a motion by Senator Darling (R-River Hills) to cap the amount of referenda-approved school district debt levy included under 2/3 funding schools at $460 million. This motion represented a retreat from the state's commitment to fund 2/3 of school referenda costs. The motion failed on a 7-9 vote with all Democrats and Rep.Ward (R-Fort Atkinson) voting no.

WEAC position: WEAC supports the continuation of two-thirds funding of partial school revenues and opposes any attempt to cap state reimbursement for school district referenda costs.

Discussion point: The JFC provided $27M above the governor's original budget request to meet the 2/3 funding goal. The Legislature must not retreat from funding 2/3 of partial school revenues. To do so would result in property tax increases across the state.

Board on education evaluation and accountability shot down 16-0:

JFC voted 16-0 to reject the governor's proposed Board on Education Evaluation and Accountability.

WEAC position: WEAC supported the removal of this item from the budget.

Discussion point: Creation of a governor-appointed Board on Education Evaluation and Accountability attached to the Department of Administration is unconstitutional. This would grant supervisory power over public instruction to state officers who are not subordinate to the State Superintendent of Public Instruction. In Thompson v. Craney (1996), a unanimous state Supreme Court determined that the state constitution vests sole authority over public instruction with the office of State Superintendent.

Expansion of the Milwaukee voucher program:

Rejection of expanded eligibility and funding mechanism changes

Republicans on JFC attempted to expand eligibility for the voucher program in the following ways; (1) approve the governor's request to expand the voucher program to families earning up to 185% of poverty (Year 2000 = $32,678 for a family of 4), (2) let pupils remain in the program even if their family income were to rise above that level once they are admitted into the program and (3) to expand the geographic boundary of the program to include the Thomas More parochial school. These attempts all failed on party-line votes of 8-8.
JFC maintained current law funding for the voucher program. However, several attempts were made to change the mechanism by which state taxpayer dollars are used to fund the program.

Accountability in the voucher program:

JFC rejected moves to promote nondiscrimination, standards and assessments in the voucher program on party-line votes of 8-8.

WEAC position: WEAC supports a plan offered by Senator Decker (D-Wausau). Senator Decker's plan would provide $2,000 per voucher student in the 2001-2002 school year and $1,000 the following year; allow parents to supplement the vouchers; and limit program attendance to 10,580 students this year. Finally, fund the voucher program from a separate aid appropriation other than the state's aid to school districts. WEAC also supports adding academic and legal accountability measures to the voucher program.

Discussion point: Voucher schools must be fiscally accountable to Wisconsin's taxpayers for their expenditure of public money. Voucher schools must be held to the same academic standards as public schools, and if Wisconsin's public schools are going to experience severe cuts in funding then voucher schools must share in the pain. The Decker plan gives the state an opportunity to put money where it can do the most good for the most students. The Decker plan would save taxpayers approximately $52M over the biennium.

Summary of other votes by the JFC relating to administration and funding DPI:

Categorical Aid programs:

Various recommendations for funding categorical aid programs failed on party-line votes of 8-8. These motions included funds for: county children with disability education boards, bilingual-bicultural education aids, school district charter school development loans, grants for CESAs and consolidation studies, school breakfast programs, and the Preschool to Grade 5 Program. WEAC supported additional funds for bilingual-bicultural aids and school breakfast programs.

High School Graduation Test:

JFC maintained base level funding for the HSGT but rejected additional funding for further development of the test. This means that the $9.2M requested by the DPI to finish developing the test was not approved. In 2000-01, however, $2.5M is provided for administration and development of the test.

Reorganization plan for DPI:

JFC rejected the governor's plan to force the DPI to reorganize its Division for Learning Support and Instructional Services. This initiative would have required the DPI to create "SWAT Teams" of education specialists to help low-performing schools. WEAC supported the removal of this item from the budget.

National Board For Professional Teaching Standards certification:

JFC approved additional funds to cover grants to teachers who are expected to achieve NBPTS certification next year. JFC also approved a change in the law allowing teachers who do not reside in Wisconsin, but who teach in the state, to receive grants once they are awarded certification. WEAC supported these measures.
JFC rejected an effort to raise the NBPTS certification grant from $2,500 to $5,000 on a party-line vote of 8-8. WEAC supported the increase.

School district operations - School referenda scheduling and start date:

JFC approved by an 8-8 party-line vote (All Democrats voted no) the governor's request to require that school district referenda and elections be held only at spring elections, general elections or special elections in November of odd-numbered years. Because this item was left in the budget as part of a list of items negotiated by the co-chairs, it would have taken 9 votes by the committee to remove the provision. WEAC opposed the inclusion of this item in the budget.
JFC rejected an attempt to repeal the law allowing school districts to opt-out of a September 1 start date. WEAC supported the rejection of this item as non-fiscal policy that should be introduced as separate legislation.

Charging a fee for BadgerLink:

JFC unanimously rejected the governor's item to charge schools for access to BadgerLink.

Other items that failed on party-line votes:

Funding for Minority Pre-college Scholarships
Funding for an environmental education consultant in DPI
Library service contract funding
Funding for the Wisconsin Geographical Education Program

For more information: Please feel free to contact Bob Burke, WEAC Legislative Coordinator, directly with any comments or questions about the information in this memorandum. Burke can be reached via e-mail at burkeb@weac.org or by phone at 800-362-8034 ext. 254.

Resource page on 2001-2003 state budget

Posted June 1, 2001