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Governor's Task Force to Propose QEO Repeal

The Governor's Task Force on Educational Excellence will recommend eliminating the Qualified Economic Offer law, Chairman Michael Spector told reporters Tuesday (June 1, 2004).

Spector said the panel's list of recommendations also will include:

  • Reducing property taxes by 20% by raising the state sales tax from 5% to 6% and eliminating some sales tax exemptions.
  • Fully funding the 4-year-old kindergarten program.
  • Increasing state funding for special education programs, English-as-a-second-language programs, and class-size reduction.

Spector said recommendations will not include eliminating school district revenue controls.

The task force is expected to turn its recommendations over to Governor Doyle by the end of June. The governor is expected to incorporate some of the task force's recommendations into his next two-year state budget proposal early next year.

In his first state budget proposal last year, Doyle proposed eliminating the QEO – which severely limits the ability of teachers to negotiate fair pay raises – but the Republican-controlled Legislature removed that item from the budget bill. Doyle said 11 years of the QEO has caused teacher salaries in Wisconsin to stagnate, is driving experienced teachers from the profession, and is causing the best and brightest young people to choose other careers. Under the QEO, Wisconsin teacher salaries have fallen below the national average.

Spector said there was broad support among the panel's 29 members to eliminate the QEO. He said the panel would propose a new system of incentives to improve teaching skills and learning.

Like the QEO elimination proposal, the sales tax plan is expected to meet resistance in the Legislature. The plan would raise an additional $800 million through the higher sales tax and another $752 million by repealing sales tax exemptions on more than two dozen products and services. The panel did not specify which product and service exemptions should be repealed, but it will keep exemptions for food and drugs, Spector said. Current sales tax exemptions include legal services, real estate commissions and accountant fees, among many others.

Under the plan, the $1.55 billion sales tax increase would be almost entirely offset by a $1.44 billion property tax reduction. Spector said Doyle could apply the remaining $110 million to tax credits.

Resource page on school funding
Web site of the Governor's Task Force on Educational Excellence

Posted June 2, 2004

At the Capitol News Archives