Effects of the Revenue Caps
on Wisconsin's
School Districts,
1996-97 School Year

This research document was prepared by WEAC researcher Russ Allen

Introduction and Summary of Significant Findings

Each year since 1994 the Wisconsin Association of School District Administrators and the Wisconsin Education Association Council have surveyed public school superintendents to determine the effects of the state revenue caps on district programs and services. The response rates of superintendents for the four years have been much the same: 79% in 1994, 77% in 1995, 70% in 1996, and 72% this year. The questionnaires used over the past four years have been relatively short (the current one is only two pages in length). Furthermore, all questions have been written as objectively as possible to avoid any introduction of bias into the results.

Each study also has included a core set of questions which essentially has remained unchanged over four years. A few new questions have been asked each year when they were thought to be appropriate. Lastly, in order to encourage the participation of superintendents, all responses have been treated anonymously.

As in previous years, the current study shows that high proportions of school districts have implemented cost-cutting actions in order to comply with the revenue caps. Over the past four years, more than one-half of districts have made cuts in areas related to maintenance and improvement of facilities; however, programs and services which directly affect children also have been targeted. For example, since the 1993-94 school year, 69% of districts have delayed or reduced purchases of computers and other technology, 35% of districts have increased class sizes, and more than 40% of districts have increased student fees or delayed or reduced purchases of textbooks or curricular materials. As has been the case for the previous three years, districts with declining enrollments continue to report the greatest number of cost-saving actions.

Superintendents also report that the revenue caps (along with the Qualified Economic Offer) are affecting the morale of employees. Of the more than 200 written comments explaining changes in morale, all but a few superintendents indicate that employee morale has deteriorated in recent years.

Furthermore, when asked to indicate the long-term effects of the revenue caps, 172 superintendents said the consequences would be "negative" or "somewhat negative." This compares with 41 superintendents who felt the long-term effects would be "positive" or "somewhat positive." The remainder (89 persons) were uncertain.

Prior to reviewing the results from 1996-97 in more detail, this paper contains a brief discussion of property taxes in Wisconsin and key provisions of Wisconsin Acts 16 and 27, which were intended to lower property taxes in Wisconsin. There then is a list of six significant findings from previous studies. This background information should allow for a better understanding of the results of the current study.

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Posted February 4, 1998