Budget Crisis Worsens Revenue Cap Woes

Nearly three-fourths of Wisconsin school districts could face financial ruin if state-imposed revenue caps are not changed, according to the results a new survey by WEAC and the Wisconsin Association of School District Administrators.

Seventy-three percent of superintendents say the fiscal viability of their districts will be in serious jeopardy if there are no changes to the revenue cap law in the next three to five years.

The new research, released Monday (March 11, 2002), highlights the urgent need for the Legislature to pass a budget adjustment bill, according to WEAC President Stan Johnson.

"Every kid in every Wisconsin community deserves a great school,” Johnson said. “This survey is proof that kids are in danger of losing the classrooms that work and the great teachers and staff we have in our schools right now. Great schools benefit everyone in Wisconsin, and if the high quality of our schools declines, all state residents will be harmed. It is time to eliminate revenue controls.”

The situation will worsen if the state does not resolve its budget difficulties soon, according to WEAC and WASDA.

“Not only must about half of Wisconsin’s school districts notify staff of potential layoffs by March 15, but the McCallum administration must also submit a plan to the Legislature by March 15 if it fears cash flow problems in the next few months,” WASDA Executive Director Miles Turner said. “The administration must announce if it is in danger of missing its fiscal responsibilities, including aid payments to school districts. This will exacerbate school districts’ problems.”

“Wisconsin school districts are living with uncertainty over the future of state aid,” Johnson said. “ A loss of aid could spell financial ruin for districts that have cut their budgets to the bone over the last nine years.”

WEAC and WASDA have surveyed superintendents annually since the state imposed revenue controls in 1993.

“School districts throughout Wisconsin have shouldered the burden of state-imposed revenue controls for the last nine years,” Johnson said. “Districts have been forced to make severe and painful budget cuts. This study should serve as a wake-up call for lawmakers and state residents: We must solve our budget problems and eliminate revenue controls before it’s too late.”

“Many districts have been forced to reduce or eliminate important educational programs, including foreign languages, business education, art and technology education,” Turner said. “These districts have nowhere else to make cuts. Many are in desperate situations and need relief from revenue caps.”

Other findings in the survey:

• 71% say the quality of education in their districts has already fallen because of revenue controls.
  
• 81% of superintendents believe the quality of education in their districts will decline over the next several years.
  
• 74% say that Wisconsin should change the way it funds education in order to protect the long-term health of public schools.
  
• 69% say the current state aid formula for public schools does a poor job of equalizing educational opportunities for all students.
  
• 88% say the effects of revenue caps on hiring and retaining quality teachers in the future would be “negative” or “very negative.”

A summary report, as well as a longer version of the study containing specific information about 161 of the 283 districts that participated in the survey and how revenue controls have affected them are now available online.

Posted March 11, 2002