Effects of Revenue Caps
on Programs and Services Offered by Wisconsin’s Public Schools —
1998-1999 School Year

Significant Findings 1993-94 to 1997-98

  1. In each of the previous studies, districts with declining enrollments reported more cost-cutting actions than districts with increasing or stable student populations. Superintendents from declining enrollment districts also have been more critical of the revenue caps than superintendents from districts in which the student population was stable or increasing. (In the current study there was no significant correlation between the number or perceived "severity" of cuts and changes in enrollment).

  2. Consistently, it has been found that there are no significant differences among rural/small town, suburban, and urban school districts as to the number of cost-cutting actions taken. Further, the number of cuts is unrelated to per pupil spending amounts. This does not mean that cuts have the same impact in poor and rich districts, or that all cuts impact students in the same way.

  3. At the end of the first year of the revenue caps, more than 90% of superintendents thought the long-term consequences would be negative. When asked five years later about the effects of the revenue caps, 64% of superintendents say the effects have been negative, while 24% say the effects have been "neutral."

  4. In 1997, superintendents reported that the revenue caps, along with the Qualified Economic Offer, were having a negative effect on school employees. Of the more than 200 written comments about employee morale, all but a few superintendents indicated that morale had deteriorated since 1993.

  5. Although cuts have occurred in each of the areas listed in the questionnaires, districts tended to target five or six areas over the first five years: - Delaying/reducing purchase of computers and other technology,

        * Spending less for maintenance of buildings and grounds,
        * Spending less for improvements of buildings and grounds,
        * Delaying building maintenance or improvement projects,
        * Increasing administrator workload, and
        * Delaying/reducing hiring of new staff.

  6. Responses in 1998 showed that nearly one-half of superintendents (47.9%) favored repealing the revenue caps. Less than 10% would like the law to remain in its current form. In addition, eighty-seven percent of superintendents said they would like school boards to have more flexibility to exceed the caps. Two-thirds of superintendents favor keeping the revenue caps if there were greater increases in spending allowed from year-to-year. Finally, almost two-thirds of superintendents favor the use of alternative taxes, such as sales or income taxes, to support public education.

  7. Responses in 1998 showed that nearly one-half of superintendents (47.9%) favored repealing the revenue caps. Less than 10% would like the law to remain in its current form. In addition, eighty-seven percent of superintendents said they would like school boards to have more flexibility to exceed the caps. Two-thirds of superintendents favor keeping the revenue caps if there were greater increases in spending allowed from year-to-year. Finally, almost two-thirds of superintendents favor the use of alternative taxes, such as sales or income taxes, to support public education.

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