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Budget Shortfalls
Superintendents were asked if their district experienced a budget shortfall
in the 2003-04 school year. Slightly more than one-third (37%) answered
"yes." For these districts, the median shortfall was approximately
3% or $200,000 (mean = $440,000).(2) One-fourth had
a shortfall of 1% or less. At the other extreme, 21% had a shortfall
greater than 4%.
The Majority of Districts Continue to Lose Students
Under the revenue controls law, the amount of money that a district
can raise is a function of student enrollment. If a district loses or
gains students, the amount of revenues are decreased or increased accordingly.
A decline in student enrollment represents a serious challenge for most school districts. For example, if a district were to lose an average of two students at each grade level (K-12, for a total of 26 students), this does not mean that the district can eliminate one teaching position. Further, many of the costs of operating a school system, such as heat, electricity, transportation, maintenance, or administration, cannot be reduced simply because there are one or two fewer students in each classroom.
Over the past 2-3 years, 54% of school districts declined in enrollment, compared with 22% that increased and 25% that had stable enrollment (Table 3). Conditions are not likely to change in the near future, for 52% of superintendents say that their district will have fewer students over the next several years (Table 4).
For those districts projecting fewer students in the next two to three years, the average drop in enrollment will be 4.5% (median = 3%). Only 20% of superintendents say that enrollment is expected to increase.
Although moderate growth is beneficial under the revenue controls, too much growth can be a problem. If a district is fast-growing, it may require passage of a referendum to construct new buildings, along with a separate referendum to operate the school, including funds for staff, curricular materials, and maintenance and utilities.
Table 3
Changes in Enrollment Experienced During the Past Two or Three Years*
| Changes in enrollment |
Number of districts |
Percentage of districts |
Increase |
64 |
22% |
Decrease |
160 |
54% |
About the same |
73 |
25% |
Total |
267 |
*Two superintendents did not answer the question.
Table 4
Projected Changes in Student Enrollment Over the Next Two to Three Years*
| Changes in enrollment |
Number of districts |
Percentage of districts |
Percent changes |
|
Mean |
Median |
|||
| Increase | 57 |
20% |
5% |
3% |
| Decrease | 154 |
52% |
5% |
3% |
| About the same | 80 |
27% |
- |
- |
| Not sure | 7 |
2% |
- |
- |
| Total | 298 |
|||
Concluding Remarks
This is the eleventh consecutive year that Wisconsin's superintendents
have been surveyed about the impact of revenue controls on services
and programs offered in the state's public schools. Three findings in
the current study are especially salient.
First, the cuts reported in 2003-04 are not isolated occurrences. For many school districts, 2003-04 represents the eleventh consecutive year in which cuts have been made in one or more of the 27 areas studied.
Second, as has been as has been the case from the beginning, districts with declining enrollment are experiencing the most difficulty maintaining quality educational programs. This is a growing challenge because in this year's study 54% of districts reported a drop in enrollment over the past two or three years. To make matters worse, 52% also projected that enrollments will decline in the two or three years ahead. In comparison, during the three-year period between 1993 and 1995-96 when revenue controls first started, only 18% of districts lost students.
Third, data from the current study show that the breadth of curriculum being offered to Wisconsin's children continues to narrow. Of the districts reporting this year:
The reductions in courses and sections are not uniform across all subject areas. Instead, districts were most likely to eliminate courses and sections in non-core subjects such as Foreign Languages, Family and Consumer Education, Business Education, Music-Art-Band-Orchestra, and Vocational training. The core academic subjects were far less likely to be affected by cuts. These reductions are the result of budget shortfalls, and not a consequence of declines in enrollment or a drop in study interest.
This study suggests that the range of opportunity for Wisconsin children is diminishing as districts reduce and eliminate non-core subject areas while focusing more and more on simply funding the basics. For many students, the courses that are being eliminated are the very ones that are needed to meet their interests and needs. The goal of providing a comprehensive and appropriate education for all students appears to be increasingly difficult to realize.
2. The mean is the arithmetic average for participating districts, whereas the median is the mid-point when budget shortfalls are ranked from low to high.
Posted December 17, 2004