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Effects of Revenue Caps
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Use of Non-Traditional Sources of Funding
Over the past several years, there have been many reports about schools using non-traditional sources of funding to supplement their existing sources of revenue. To determine the extent to which this has been done in Wisconsin in response to the revenue caps, superintendents were asked the following question, "As a result of the revenue caps, has your district generated funds from 'non-traditional' sources, such as the following: sole vendor rights (e.g., for soft drinks sales), equipment donations, use of corporate curricular materials, product endorsements, etc.?"
The responses of superintendents were split on this question: 48% answered "yes," while 52% answered "no." Those who answered "yes" were given a follow-up question and asked if their use of non-traditional sources of funding was greater, less, or about the same as compared with a few years ago. Nearly three-fourths of superintendents (74.5%) answered "greater." In contrast, only 1% said "less." The remainder, 24%, said the use of non-traditional funding was "about the same." These figures support reports in the popular media and elsewhere stating that more and more schools are using non-traditional sources of funding to pay for programs and services.
A closer look at responses to these questions show no significant correlation between district wealth, district size, or changes in student enrollment and the use of non-traditional funds or changes in the pattern of use over the past few years. However, there is a small but significant correlation between the perceived nature of the cuts made and the use of non-traditional sources of funding. Districts in which superintendents say the cuts are having the most negative impact report greater use of non-traditional funding.
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